How much money should you hold in your Savings Account?

Finances are an important part aspect of anyone’s life. It dictates your life. Hence, it is necessary that you have your finances in order. Here, banks play an important role. Through Bank Accounts, Debit or Credit Cards, and other investment instruments, they help you get your finances in place. Plus, you can access a bank’s products and services instantly online.
If you want your finances working, open a Bank Account. It is a great way to assure safekeeping and obtaining instant access to your money. There are different Bank Accounts to open. Savings Account is one such account which is essential and advantageous. It secures your earnings and offers a modest interest rate on your deposits. The account builds a corpus and meets your daily banking requirements.
Most of them wonder how much money should be ideally held in a Savings Account. If you have a similar question, consider the following pointers:
Minimum balance requirement
It is the account balance you should always maintain. Referring to the minimum balance requirement gives you an idea of the amount you should hold in your account. The purpose behind introducing the minimum balance requirement was to encourage everyone to save and avoid going overboard on spending. You may need to pay a penalty in case of non-maintenance of the minimum balance requirement.
Note, the minimum balance requirement and its penalty amount are different for every bank. Open Bank Account online with a bank that has the lowest minimum balance requirement and penalty. This facilitates easy account maintenance.
Financial goals
Savings Account is an excellent savings instrument that not many investors explore. You can deposit a decent amount in your account every month and work towards fulfilling your financial goals. Suppose your financial goal is to build a corpus of Rs. 60,000 in 12 months. You can consider depositing Rs. 5,000 every month. This way, you can meet your goals systematically.
There is no upper limit to the deposits you can make to your Savings Account. However, there are certain rules to follow. You need to submit your PAN Card details for cash deposits above Rs. 50,000. Furthermore, the bank should inform the Income Tax Department if your cash deposits in a financial year exceed Rs. 10 lakh. Be mindful of these things when deciding the amount to keep in your account.
Interest earnings
Since interest rates depend on your account balance, you need to consider the amount you maintain in your account. Use the Banking app to check the different rates offered by different banks. Typically, a higher account balance attracts a better interest rate. Hence, you should try to keep up with a good balance in your account. It is the best way to secure your money and keep it working.