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The Advantages of Savings Account that Outweighs its Disadvantages
Posted on Monday, September 5th, 2022 | By IndusInd Bank
A savings account is one of the simplest and most secure ways to park your funds. But if you have any apprehensions about opening a savings account, you should not because their benefits outweigh their drawbacks. This article will walk you through some such advantages.
But first, let us see some disadvantages of savings accounts you must have come across and decode why they don’t provide an accurate picture.
Limited account options:
Most people believe that they don’t have many savings account options to choose from. However, this is not true. Depending on your needs, you have various types of savings bank accounts to choose from. Some popular savings account types are but are not limited to:
- Instant Savings Account
- Zero-balance Savings Account
- Salary Account
Fluctuating interest rates:
The interest rates fluctuate because they depend on the market condition. However, these changes are not frequent, so you can be sure of receiving stable interest earnings.
Minimum balance requirement:
Not all savings accounts have such compulsions.
Advantages of Savings Account
Here are some benefits of having a savings account:
1. Earn Interest
Even though the interest on your deposits are low compared to other saving instruments, it is better to keep your funds in a savings account than to keep it idle. Interest gives hard-earned deposits a hedge against inflation, so it maintains its purchasing power over time.
2. Instant Setup
Most banks today offer instant savings accounts that anyone can open without a hassle. You only need a few documents like Aadhaar and PAN card to open an instant savings account. Also, you no longer have to visit a branch, wait in line, and go through tonnes of paperwork. You can visit the website of your preferred bank to apply for a savings account online.
3. Zero-balance Requirements
These days, instant savings accounts from various banks are more attractive because they do not have a minimum balance requirement, and banks do not levy non-maintenance charges even if you have zero bank balance.
4. Convenience
Banks offer debit cards that you can use to make safe and seamless cashless transactions. You can use the card to make in-store and e-commerce purchases. These cards double up as ATM cards so that you can withdraw cash anytime you need it.
That is not all.
You can link your savings bank account to third-party payment apps and UPI platforms to make digital payments more convenient.
5. Rewards
Most people consider a savings account to be the most basic account where you park your funds and earn interest. But to make savings accounts more attractive, banks provide many additional benefits to their customers. You can expect to earn cashbacks and special discounts on purchases, free movie tickets, buy one get one offers, and reward points with most savings accounts.
Final Words
From the points made above, it is clear that the advantages of a savings account greatly outweigh its disadvantages. In fact, instant savings accounts and zero-balance savings accounts are much easier for you to get and operate. So, get a savings account to safely deposit your earnings and manage your expenses seamlessly.
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.
