5 benefits of maintaining a higher balance in your savings account

Posted on Monday, September 11th, 2023 | By IndusInd Bank

In the realm of financial management, the significance of upholding a minimum balance within your savings account cannot be underestimated. What might initially appear as a minor action can, in fact, lead to noteworthy gains.  

Embark with us on a journey to uncover the compelling array of benefits that sprout from maintaining a minimum balance within your IndusInd Bank Savings Account. From fortifying your financial stability to unearthing a trove of exclusive privileges, the potential of this seemingly elementary practice is bound to astound you. Join us as we delve into the intricacies of this fundamental financial strategy and unveil the remarkable advantages it holds. 

Benefits of maintaining high balance in your savings account 

1. Interest earnings 

• Boosting Your Savings: Maintaining a high balance helps you avoid fees, access premium benefits, and earn interest on your money, making your funds work for you instead of idling.  
• Compound interest: Over time, the interest you earn can compound. This compounding effect can significantly increase your savings.  
• It is like a snowball rolling downhill, getting bigger as it goes. The more money you keep in your IndusInd Bank Savings Account, the more interest you can earn on both your principal (the initial amount) and the interest already earned. 
• Risk-free returns: Unlike many investments that carry various levels of risk, a savings account is a low-risk investment option. Deposits up to ₹5 lakhs are insured by DICGC, providing peace of mind. 

• Liquidity with earnings: IndusInd Bank Savings Accounts offer an attractive option for your emergency fund or short-term savings goals with their unique combination of liquidity and earnings from interest. 

2. Fee avoidance 

• Monthly maintenance fees: Certain banks charge monthly maintenance fees or penalties if your savings account balance falls below a minimum threshold. Adhering to this requirement safeguards your money from unnecessary charges, allowing you to save and grow your wealth. 
• Cost-efficiency: Avoiding fees is like plugging a leak in your financial boat. It ensures that you don’t lose money unnecessarily, allowing you to manage your finances optimally. Avoiding fees is similar to patching a leak in your financial vessel, preventing unnecessary loss and allowing for optimal financial management. 
• Savings potential: The money saved from avoiding fees can be redirected towards your savings or investment goals, accelerating your financial progress. 

3. Access to premium services 

• Personalized assistance: Maintaining a higher balance often grants you access to personalized banking services.  
• For instance, IndusInd Bank may assign a dedicated Relationship Manager who can provide tailored financial advice and solutions to help you meet your financial objectives. 
• Priority Customer Support: Experience the advantage of being a priority customer with our dedicated support team, committed to resolving your issues promptly. IndusInd Bank offers this exclusive service across top brands so that you can have more time dedicated to your financial goals and say goodbye to administrative hassles. 

4. Financial security 

• Immediate financial safety net: A higher balance in your savings account acts as an immediate financial safety net. It’s your go-to source of funds when unexpected expenses, such as medical bills, car repairs, or home emergencies, arise. 
• Quick accessibility: Unlike some investments that may take time to liquidate, the money in your savings account is readily accessible. This ensures you can address emergencies promptly without incurring additional costs or resorting to high-interest loans. 
• Maintaining financial stability: Emergency funds help you maintain financial stability, ensuring that your overall financial plan remains on track. 

5. Improved creditworthiness 

• Leveraging credit opportunities: A consistent high balance reflects positively on your financial stability. Banks and financial institutions often consider your average account balance when evaluating your creditworthiness. This means you are more likely to qualify for loans, credit cards, or other credit facilities with favorable terms. 
• Better interest rates: Lenders may offer you more competitive interest rates owing to your demonstrated financial responsibility. This can translate to lower borrowing costs over time. 
• Wider financial choices: Your improved creditworthiness opens the door to a wider range of financial choices, allowing you to access credit when needed and make informed borrowing decisions. 
• Financial flexibility: You can seize opportunities or address financial challenges without undue stress. 
• Enhanced financial reputation: Consistently maintaining a minimum balance contributes to building a positive financial reputation, which is valuable for your long-term financial success. 

Conclusion 

In a world full of financial possibilities, taking a simple step like maintaining a minimum balance in your savings account with IndusInd Bank can lead to a plethora of benefits. From the security of a financial safety net to accessing premium services, the advantages are undeniable. In conclusion, while maintaining a minimum balance in your savings account might seem like a routine task, it offers a multitude of advantages that extend far beyond mere compliance. From providing financial security to unlocking premium services and fostering financial discipline, this simple step can pave the way for a stronger, more secure financial future. So, whether you’re just starting your financial journey or looking to optimize your existing accounts, embracing the practice of maintaining a minimum balance is a choice that’s bound to yield positive outcomes. 

So, what are you waiting for? Click here to open a savings account to avail these benefits. 

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.