Importance of a Saving Account: A Saving Account is one of the most popular bank accounts that a person can invest in. It is the account that can be used for many different purposes.
1. Safe avenue for funds: The funds kept in a Saving Account stay there unless they are withdrawn or paid out. Another point to be considered is that Saving Accounts are insured up to 1 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
2. Provides special value added services: Many banks nowadays provide value added services and benefits with a Savings Account. Many banks provide some basic form of accident or medical insurance, foreign travel insurance, and other types of insurance covers for opening the bank account.
3. Place to collect funds and make payments: A Saving Account is an excellent place to collect funds from different sources.
4. Income generating account: Unlike a current account, a savings bank earns interest. The balance earned in a Saving Account helps to improve the individual’s income.
5. Can help to plan your child’s financial future: By opening a Kids Saving Account, you can help your child understand the basics of how to operate a bank account. These valuable financial lessons can help your child manage their finances and learn the value of money.
