Savings Accounts bring many benefits, including an ATM or Debit Card, interest income, and the facility to carry out online transactions. You require a secure haven to store excess funds, which you can use in emergencies, repay debts, or buy an asset like a car, house, etc.
A high interest rate on Savings Account helps you earn interest income and offers many payment and investment opportunities. Let us explore its privileges:
Digital account opening
Most banks now offer online account opening options with limited or zero human interaction. After the video KYC, you can open the account digitally. You no longer need to visit the bank branch for verification.
Choose a bank that offers high Savings Account interest rates. Always compare your bank’s interest rate against the prevailing industry rate. If your interest earnings are high, you can quickly build your savings within a short period. The interest gets added to the principal amount every month, quarter, or six months, depending on the payout frequency.
The frequency of interest income credit plays a crucial role in Savings Accounts. You earn the interest on the account balance every month or quarter, leading to faster compounding and more interest income in the long run. The bank never misses a single interest payment and repays the amount according to the chosen frequency.
You can benefit from the digital experience by downloading the Banking app on your smartphone. It is the easiest, fastest, and most secure way of account access, letting you complete transactions instantly from anywhere. You need to enterthe Customer ID and password to log into the app and monitor your savings.
Automatic bill payments
You can say goodbye to queues and reminders to pay your bills and dues. Another way to use Savings Account is to automate bill payments and equated monthly instalments. You can set standing instructions for debiting a certain sum from your account towards utility bills and Car Loan EMIs every month while ensuring sufficient balance.
Your Debit Card comes with a bunch of features. After opening the account, you get a Debit Card offering free withdrawals from bank branch ATMs across India. You can withdraw a certain amount daily and enjoy domestic airport lounge access per quarter. Enjoy going cashless to shops and malls and pay conveniently using this card linked to your online account.
Ensuring your bank does not levy charges on services and transactions is good. You can access many fund transfer options between Bank Accounts using IMPS, RTGS, or NEFT without paying extra charges.
The Bank Savings Account interest ratevaries per the economic conditions and Reserve Bank of India policy decisions. The RBI adjusts key policy rates, such as the repo rate, to manage inflation and stimulate economic growth.