Benefits of savings accounts | Fusion - WeRIndia

Benefits of savings accounts

Benefits of savings accounts

A savings account in a bank is easy to open and operate. It allows you to save your money in the bank hassle-free.

Saving bank account holders are allowed to perform a limited number of transactions per month.

That is, a limited number of cash deposits and withdrawals are permitted in a month. After that, banks levy fees on transactions.

Though savings accounts offer less interest than term deposits, it has many benefits.

Here is a list of benefits of a savings account of a bank:

  • The first and foremost benefit of a savings account is to encourage people to save money in a bank. It prevents people from wasting their money.
  • The interest on a savings account differs from each bank and from time to time. But, you can earn interest on the money saved in the account, which encourages you to save more money.
  • It improves your financial security. The money will be useful in times of need. Generally, many people spend money if they have funds in their hands. Hence, if you keep it in your account, you will withdraw it only for genuine reasons.
  • Saving money in a bank account does not involve significant risks like investing in stock markets.
  • You can easily withdraw money from a bank when you need it. Nowadays, there is no need to visit the bank branch for it. You can withdraw cash from your nearest ATM. If you want to pay for something, you can make online payments through internet banking or mobile banking.
  • Banks offer a discount of up to 30% on the locker fee for saving bank account holders who maintain a quarterly balance in their accounts. Besides, many banks offer insurance cover, death cover etc., to their customers.
  • A savings bank account holder can get a discount of up to 5% while buying gold coins if they maintain a decent amount in their savings account.

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