How to use a savings account to fund your child’s education

Posted on Wednesday, August 30th, 2023 | By IndusInd Bank

The importance of quality education cannot be overstated. With rising education costs, it’s prudent to be prepared. A savings account serves as a reliable foundation to fund your child’s educational pursuits.

In this guide, you’ll learn how to maximise the benefits of a savings account for this purpose.

Benefits of savings accounts

• The magic of compound interest: One of the wonders of the financial world is compound interest. Over extended periods, it can significantly amplify the funds in your savings account. By opening a savings account early, your investments can yield a rich harvest by the time your child is ready for college.
• Staged financial planning: Start by earmarking funds for primary education, and then incrementally for higher studies. This approach ensures that by the time university fees come knocking, you’re prepared, having accumulated enough in your savings account.
• Flexibility during emergencies: Given its liquidity, you can easily withdraw from a savings account for sudden educational expenses without incurring penalties.
• Future readiness: As the education landscape evolves, newer opportunities or courses might arise. A well-maintained savings account ensures that you’re financially prepared to embrace such opportunities.
• Scheduled contributions: Consistency is key. Set up automated monthly transfers from your primary account to your savings account. This disciplined approach ensures that you’re not only saving regularly but also capitalising on compound interest.
• Periodic reviews: It’s vital to routinely assess the growth trajectory of your savings. Occasional windfalls, like bonuses or tax returns, can be put into the account, accelerating the growth of your child’s educational fund.

Steps to open an IndusInd Bank Savings Account

1. Choose your account number: Begin your personalised banking experience by picking an account number of your choice via the MAMN (My Account My Number) facility.
2. Add details: Fill in your personal details, ensuring accuracy to avoid any issues in the process.
3. Deposit funds: Make an initial deposit to activate your account. This amount varies based on the type of savings account you opt for.
4. Complete video KYC: Say goodbye to tedious paperwork. IndusInd Bank’s innovative video KYC requires only your Aadhaar and PAN details, allowing you to complete the KYC process from the comfort of your home.

Leveraging banking perks

• Diverse investment avenues: As your savings grow, you’ll find that many accounts offer linked investment opportunities. This provides a chance to diversify your funds, ensuring a healthy mix of liquidity and growth. With IndusInd Bank’s array of financial services, there are numerous avenues to explore.
• Loans against savings: Financial exigencies can arise anytime. Instead of depleting your child’s education fund, consider the option of availing a loan against your savings. This way, your child’s academic future remains uncompromised.
• Anticipating international education: If you envisage your child studying abroad, it’s paramount to factor in the additional expenses. Currency exchange rates, living expenses, and international tuition fees can be substantial. Your savings account can be the backbone of this venture, ensuring your child’s dreams are not hampered by financial constraints.

IndusInd Bank Online Savings Account: make the most of your money

Ever wondered about a savings account that’s crafted just for you? Take a look at the Indus Delite Savings Account. It is not just your ordinary savings account but provides a host of offers –

1. Exciting cashback: Every time you use the Delights Debit Card, get 5% cashback on getting your vehicle fueled, having meals at restaurants and watching your favourite shows or movies on OTT platforms. You also get 5% cashback when you shop on Amazon.
2. Shop and save more: You get 20% off on all your Swiggy orders for those food cravings and 10% off on BigBasket for your daily grocery needs.
3. Movies made better: For the cinephile in you, enjoy a special ‘Buy 1 Get 1’ offer on movie tickets when you book via BookMyShow using your Delights Debit Card.
4. No balance, no worries: Here’s the icing on the cake – you do not need to maintain a minimum balance in your account and incur extra charges or penalties. However, the more money you have stored in your savings account, the more interest you will earn on your funds.

With the Indus Delite Savings Account, banking is not just a necessity; it’s a delightful experience. Indulge in exclusive benefits tailored just for you.

Conclusion

A savings account transcends its traditional role when it plays a pivotal part in shaping your child’s educational journey. With a mix of discipline, strategic planning, and leveraging online tools like the online savings account options at IndusInd Bank, the path to a bright academic future becomes clear.

Ready to embark on this journey? Apply now and sow the seeds for a prosperous tomorrow with IndusInd Bank.

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 taking any financial decisions based on the contents and information.