Savings Accounts usually come with certainadvantageswhich makes a perfect investment choice. They also come with additional features that make them more suitable for certain purposes. Here is a list of features of Savings Account to help you understand why aSavings Accountmight be just what you need:
- Easy Transactions
You can use your Savings Account to send and receive payments. This can be done by eitherNetBanking, or through your Debit/ATM Card. This feature cuts down the dependency on cash for all transactions, especially when it comes to payment of bills. - Payment of Bills
These days, banks offer payment facilities such as BillPay with Savings Accounts. This enables account holders to make payments for utilities such as electricity, water and phone recharges directly from their account. - ATM facility
Should you feel the need to withdraw cash, then you can do so from your Savings Account via an ATM. Most banks have their ATM branches spread all over the country. But in case you cannot find one in your vicinity, and the need for cash is too pressing, then you can access your account from another bank’s ATM as well. All you need is your ATM/debit card. - NetBanking and MobileBanking
Your bank will usually provide with NetBanking facilities with your Savings Account. as mentioned earlier, this makes it convenient to conduct transactions. You can send and receive payments by logging in to your account online. Further, you can download the bank’s app on your phone and use mobile banking to make your banking activities more convenient and accessible from anywhere. MobileBanking apps also provide you the facility to interact with bank executives for any queries, without having to make a trip to the bank’s nearest branch. - Debit Card
Banks provide Savings Account holders with ATM/Debit Card not just for accessing the account through the ATM, but also for making payments, whether at the merchant’s store, or through an online payment gateway. - Savings interest rates
With every Savings Account, banks offer an interest rate enabling your idle money to grow over time.
- Cross Product benefits
Some banks offer their Savings Account holders cross product benefits. This means that if you already have a Savings Account with the bank, then you will get special benefits and offers in case you decide to open another account with the same bank or want to avail of any of their other products. E.g. HDFC Bank waives off the first-year maintenance fee for a first time Demat Account applicant, if they already have a Savings Account with the bank.Banks offer a range of differentSavings AccountWith HDFC Bank InstaAccount open a Savings Accountinstantly in a few simple steps. It comes pre-enabled with HDFC Bank NetBanking & MobileBanking and you can enjoy Cardless Cash withdrawals.Clickhereto get started!
Click here to open a Savings Account.
* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circ*mstances.
FAQs
Savings accounts offer one of the simplest ways to earn interest on the money you have. They offer higher interest rates than a regular checking account, while still making it easy to spend and withdraw money. However, savings account rates are much lower than other investments, and they don't keep pace with inflation.
What are the features of a savings account? ›
Savings accounts offer one of the simplest ways to earn interest on the money you have. They offer higher interest rates than a regular checking account, while still making it easy to spend and withdraw money. However, savings account rates are much lower than other investments, and they don't keep pace with inflation.
What are the 7 steps to take to open a savings account? ›
7 Easy steps to open a savings account
- Choose how to apply. ...
- Provide proof of your identification. ...
- Provide your contact info. ...
- Select a single or joint account. ...
- Accept the terms and conditions. ...
- Choose your deposit amount. ...
- Submit your application.
Online savings accounts work just like their brick-and-mortar counterparts, which means you can deposit money into the account, withdraw your funds and earn interest. The difference is that you can only manage the account online, through a mobile app or at an ATM, and not at a physical branch location.
Why would you put money into a savings account in EverFi? ›
Savings accounts can protect your money from being lost, damaged or stolen. Savings accounts help you get to your goals faster. How are simple interest and compound interest different? Compound interest stays the same over time, but simple interest grows.
What are the features of a basic savings bank account? ›
Features
- Available at all branches.
- Minimum balance amount Nil.
- Maximum balance /amount No upper limit.
- No Cheque Book facility available.
- Withdrawals only using withdrawal form at Branches or through ATMs.
- Basic Rupay ATM-cum-debit card will be issued.
You can earn interest.
Putting money into a savings account allows you to earn interest on your balance. Some checking accounts pay interest, but many do not. Money left to sit in a non-interest-bearing checking account doesn't have a chance to grow.
Are savings accounts online? ›
The highest APY savings accounts are easy to access
Online banks, credit unions and nonbank providers offer some of the best savings rates on the market while charging fewer fees than traditional banks. They also often offer good websites and mobile apps that typically let customers deposit checks and pay bills.
What are the benefits of a savings account? ›
In addition to earning interest, money in a deposit savings account is readily available. One of the biggest advantages of a savings account is that your money is fully accessible to you. You have access to your money through an ATM, online banking, our mobile app, or a transaction with a teller at one of our branches.
Which account will grow money the most? ›
Certificates of deposit typically offer the highest interest rates compared with money market accounts and savings accounts.
The total amount of money in a banking account at any given time.
Can savings accounts lose money? ›
If your bank currently has a high APY, it's possible for the rate to significantly decrease over time. With a lower APY, your money will earn less interest. The fluctuating APY won't cause your balance to decrease, but it will affect your interest income.
Which of the following is a feature of a savings account? ›
Interest Rates:
One of the core benefits of a savings account is that it offers an interest rate. Which means over time, your money will grow in value. The higher the interest rate, the better, which means you'll earn more in the same amount of time.
What is a feature of a savings account but not a checking account? ›
Savings accounts pay interest on balances. Checking accounts generally don't, and the ones that do tend to offer very low interest rates. Both types of accounts allow direct deposit of your paycheck, are federally insured up to $250,000 and may give you access to Mobile and Online Banking.
What are the basics of a savings account? ›
A savings account is a deposit account designed to hold money you don't plan to spend immediately. This is different from a checking account, a transactional account meant for everyday spending, allowing you to write checks or make purchases and ATM withdrawals using a debit card.
