The ‘saving account’ is generally opened in bank by salaried persons or by the persons who have a fixed regular income. This facility is also given to students, senior citizens, pensioners, and so on.Saving accounts are opened to encourage the people to save money and collect their savings.In India, saving account can be opened by depositing र1000 (approx. US $ 15) to र5000 (approx. US $ 80). The saving account holder is allowed to withdraw money from the account as and when required. The interest which is given on saving accounts is sometime attractive, but often nominal.
At present, the rate of interest ranges from 4% to 6% per annum in India. The interest rates vary as per the amount of money deposited (lying) in the saving bank account, scheme opted, and its maturity range. It is also subject to current trend of banking policies in a country. Most of us have a current account with a bank – it’s the standard way to receive the money you’re paid, pay for bills and withdraw cash whenever we need it. But a surprising number of people never consider savings accounts. Put simply, these accounts allow you to earn extra money on whatever you save in the form of interest – while current accounts also usually offer interest, it’s much less generous than that of a savings account.
How to Open a Bank Account
Opening a bank account is not as simple as walking up to a bank teller and handing over crumpled wads of cash; there are lots of decisions to make and confusing banking jargon to wade through. We’ll teach you everything you need to know about making smart decisions when opening a new bank account.
1. Examine Your Financial Situation.
2. Choose The Right Bank.
3. Pick a Type of Account – So now that you’ve assessed your financial status and picked out a bank, you need to decide what type of account you’re going to open.
The Importance of Having a Savings Account
Many consumers have a checking account and usually have a debit card too but there are still many people who do not have a savings account set up. For one reason or another, the majority of consumers who open a checking account usually do not open a savings account at the same time, but they really should. Listed below are some reasons why you should open a savings account today, as well as the importance of managing your money in the savings account.
What are the Advantages of Opening a Savings Account?
A savings account comes with many advantages and benefits. Having a savings account can help you achieve some of your goals and objectives. You have to find out what you want to accomplish, then understand how a saving account can help you get there
* Good foundation of wealth for the future
* Provides you with an emergency source of funds
* Positive contributor to credit standing
What are the benefits of saving money in a bank?
There are many benefits to using a bank or credit union for a savings account. Here are four of those benefits:
* Earn Interest–Money in a savings account earns interest. So just keeping your money in a savings account means you’re making money.
* Safety–if you put money into a savings account you don’t have to worry about your money being lost or stolen. Be sure to select a bank or credit union that is federally insured–this way if the bank or credit union goes out of business, you can still get your money.
* Record-keeping -It’s easy to keep track of how much money you have. You will receive statements showing how much money you deposited and withdrew. Plus most banks and credit unions give you free access to your accounts on-line.
* Withdraw money easily–It’s easy to get to your money with an ATM card or by making a withdrawal or transfer in person, over the phone, or on-line.
Our future entirely depends on our stored resources. We can establish a concrete foundation for our future if we start saving, and the easiest way to initiate this is to put money away in a savings account. Open a savings account and start saving today!
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