You need money to meet your life’s necessities. It lets you be stress-free without needing to worry about bills or repayments. Earning it is just as important as saving it. Keep it in a secure location and access it whenever required. Emergencies strike anytime. However, if you are prepared to face them, they appear less challenging to overcome.
The fundamentals of banking include understanding what is Savings Account. It lets you deposit your money safely with the bank. In an emergency, you remove funds from any local bank branch ATMs whenever you want. Unlike other investments, it is simple to perform trades and withdrawals. Let us have a look at some additional options:
Online method
Banks now allow all their customers to open accounts online using their mobile phones or computers. This means you get access from anywhere.
Importance
A basic Savings Account serves as a virtual safe deposit box for your funds. However, unlike a Fixed Deposit, you can withdraw funds whenever you want. It is necessary to have one since you need an account for monthly payments of utility bills, mobile and DTH recharges, and other such debts. Since you only store or carry a limited amount of cash on you, Bank Accounts keep you away from concerns of theft, relocation, and damage.
Eligibility
By submitting the application form and requisite KYC documents, any Indian citizen can set up a Savings Account individually or jointly. A Hindu Undivided Family can open a Savings Account as well. While Indian citizenship is necessary for opening a Bank Account, special arrangements are made for foreign people living in the country for an extended period for business or other reasons.
These people need Savings Account to send or receive money. With the application form for account opening, provide the necessary KYC papers.
Types
When looking for a basic Savings Account, you come across different types, benefits, and features. They are slightly different when it comes to saving funds. All Indian citizens can register an online account, including minors, adults, women, and senior citizens. Women Savings Accounts, Regular Savings Accounts, Senior Citizen Accounts, Youth Accounts, and Family Bank Accounts are among the account types available.
It is essential to hold a Savings Account for building a future corpus. You get interest rates at the current rate, which boosts your idle income and encourages you to stay connected with the bank. To plan your retirement, you can consider Fixed Deposits, Recurring Deposits, Insurance, Mutual Funds, and other such financial instruments.