Things to Keep in Mind While Opening a Savings Account

Posted on Monday, December 25th, 2023 | By IndusInd Bank

What is a savings account?

As the name suggests, a savings account is a type of bank account that you can use to keep your saved money. A savings account is easier to manage and can be accessed from your mobile device using the bank’s application. Also, you get attractive interest rates on account balances and deposits.

Prominent features of savings accounts include the following:

• No compromise on liquidity: Your money is available to use anytime you want.
• Achieve financial goals: You can save money for short-term and long-term needs by earning interest.
• Added benefits: You have access to facilities like chequebooks, debit cards, bank lockers, and more.
• Credit facilities: You have access to various credit facilities such as loans, purchases through EMI, and credit cards.

Benefits of a savings account

1. Separate personal and professional finances

A separate savings account for your business is beneficial as it allows you to distinguish between your personal and business expenditures. You can keep track of your business cash flow independently of your monthly expenses.

2. Earn interest

Parking your funds into a savings bank account allows you to earn interest. For example, IndusInd Bank offers attractive interest rates on their savings account to help you beat inflation. Thus, a savings account is a good option for putting your money to work while keeping your savings liquid.

3. Banking features

You can use banking features, such as UPI, NEFT, IMPS, and RTGS, with your savings account. You can also use your bank’s mobile application to recharge your phone, pay bills, and book flight tickets. Also, you can earn rewards when spending through your debit card.

4. Your money is protected

The money deposited in the savings account is protected. Bank deposits up to ₹5 lakhs are secured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). Therefore, you can be assured that your savings will stay safe and you can plan your business growth accordingly.

5. Prepare for unexpected events

As a small business owner, you may face unexpected expenses. Maintaining funds in a savings account helps you deal with unforeseen circumstances. Your money is liquid, allowing you to use the funds whenever required. You can quickly transfer or withdraw money from your online savings account as needed.

6. Expand your business whenever required

Having an online savings account helps you get into the habit of saving money that can be used later for business expansion. If you save money regularly, you can avoid taking loans when you wish to expand your business. These savings can be used for hiring top talent, creating a website, running ads online, and more.

Things to consider before opening a savings account

1. Minimum opening amount

Some banks require you to deposit a minimum balance before activating your savings account. You should select a bank that has a minimum opening amount required.

2. Services offered

Savings accounts offer various services such as debit cards, chequebook facilities, balance sweep facilities, internet banking, and more. The world is becoming more digitised every day, so getting all these services will make your banking experience hassle-free.

3. Frequency of withdrawals

Many savings accounts have a limit on the number of withdrawals you can make in a month. If your business has frequent transactions, select a savings account that allows more transactions to avoid penalties.

4. ATM facility

Some savings accounts do not provide the feature of withdrawing money from another bank’s ATM. If you need to withdraw cash from an ATM often, selecting a bank that allows withdrawing money from any ATM is ideal. However, after a specific limit is crossed, the bank may charge some fees for withdrawing cash from other banks’ ATMs.

5. Account-related fees

Typically, a savings account does not have any fees. However, some savings accounts may impose certain fees, such as ATM withdrawal fees, branch deposit fees, cash deposit fees at a non-home branch, etc. You should look into such charges before opening a savings account.

Get started with the Indus Delite Savings Account

Having a separate savings account for your business has numerous benefits. Click here to learn about the various benefits offered by the Indus Delite Savings Account. Indus Delite Savings Account from IndusInd Bank can be a perfect choice.

Follow these steps to successfully open your savings account online:

Step 1: Pick an account number of your choice

Click on ‘Open my Account’ and enter the mobile number you want to link with the bank account. This number will automatically become your account number. You can change it to any 10-digit number of your choice later.

Step 2: Fill in your details

You will be redirected to an online form once you verify your mobile number using the OTP generation process. Fill in the details and proceed.

Step 3: Fund your account and start earning interest

You can add a desired amount to your savings account and start earning interest on your money. Additionally, your funds will be kept safe and you can access them anytime you want.

Step 4: Video KYC

You can complete your video KYC process from anywhere. When you start the video KYC, a bank executive will capture your live video with your PAN card. You may be required to put down your signature on a blank piece of paper, and the bank official will take a photo of your signature for e-signature purposes.

Bottom line

A savings account may have various advantages. Savings accounts for enterprises provide a secure option to park your accumulated funds. This money can be used later to even grow your business or achieve your future goals. Till then, you can leverage your savings to earn interest.

Apply now for an IndusInd Bank Savings Account and become a financially secure business owner!

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.