All section CloseExplore Categories
Explore Tags
The Logical Indian Crew
A Savings Account Has More Benefits than Just Saving Money: Know More
Writer: Eshaan Sanjay Patil
I am a film maker and journalist by profession. I have worked as a Production Manager before I completed my PGDM in Film Making.
India, 13 Aug 2024 9:51 AM GMT
Creatives : Eshaan Sanjay Patil
I am a film maker and journalist by profession. I have worked as a Production Manager before I completed my PGDM in Film Making.
When Most People Think Of A Savings Account, They Often See It As A Secure Place To Park Their Money.
When most people think of a savings account, they often see it as a secure place to park their money. While that's one of its primary functions, a savings account offers much more than just a haven for your funds. It's a valuable financial tool with multiple advantages capable of boosting your financial health, increasing your savings, and helping you achieve your financial goals more effectively.
Beyond savings | The unseen benefits of a savings account
A savings account brings a range of benefits that surpass the mere concept of saving funds. Have a detailed look below:
Zero-balance requirement
Most regular savings accounts mandate you to maintain a minimum balance. However, when you choose the IndusInd Bank Indus Delite Savings Account, you are free from this minimum balance hassle and any associated penalties. This zero-balance account offers high flexibility during financial emergencies where access to every bit of your savings is crucial.
Look at the additional benefits you get:
| Interest Rates | Get a competitive interest rate that gives your saving the boost it deserves. |
| Cash Back Rewards | Enjoy 5% cashback on Amazon Purchases, Fuels, Entertainment and OTT spends. |
| Dining and Grocery Discounts | Avail 20% off on Swiggy orders and 10% off on BigBasket orders. |
| Entertainment Offers | Benefits from 'Buy 1 Get 1 Free' deals on movie tickets through BookMyShow. |
| Complimentary Insurance | Receive a complementary insurance coverage of Rs.1.5 lakh for added financial security. |
Note: These premium offers are accessible to Delights Debit Card users. You can apply for a Delight Debit Card online either while opening your Delite Savings Account or after.
Emergency fund access
Financial experts recommend having three to six months' worth of living expenses saved in an accessible savings account. A savings account is ideal for this purpose because of its liquidity and interest earning feature.
With features like ATM withdrawals, debit cards, and online banking, your money remains accessible 24/7. This financial buffer prevents the need to rely on credit or loans during emergencies and offers much-needed financial peace.
Mobile banking
Mobile banking, by offering convenience and real-time financial management capabilities, has revolutionised how people interact with savings accounts.
For example, IndusInd Bank's IndusMobile App allows for 100% digital banking through a single platform. You can check your balance, transfer funds, pay bills, and check exclusive offers all from your mobile device. In fact, you can open a savings account online without stepping out of your home. Such convenience gives you full control over your finances and increases the overall utility of your savings account.
Beneficial for all age groups
Savings accounts are tailored to benefit individuals at every stage of life, which highlights their versatility beyond mere money saving. For example:
- Kids' savings accounts teach financial literacy and the value of saving from a young age. These accounts often include unique features like personalised passbooks, chequebooks, and debit cards
- Regular savings accounts offer adults a safe place to park their money, alongside interest rates and easy access to banking services
- Senior citizen savings accounts offer higher interest rates and special privileges, such as priority service at bank branches and additional tax benefits
These customised options mean that everyone, from juniors to seniors, can enjoy the numerous benefits of savings accounts and enhance their financial well-being.
Security and peace of mind
Savings accounts offer high security through the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance. This insurance automatically covers each depositor for up to ₹5,00,000, including both principal and accrued interest. The coverage applies per depositor per bank and allows you to deposit your hard-earned money with confidence.
Auto-sweep facility
An auto-sweep facility boosts growth for your savings by transferring idle funds into fixed deposits automatically. IndusInd Bank Indus Multiplier Max Savings Account offers this exclusive facility and merges the liquidity of a savings account with the attractive returns of fixed deposits.
Here is how the ‘Indus Smart Sweep’ feature works:
Any amount above ₹20,000 is converted to FDs in multiples of ₹1,000, thus giving you an opportunity to earn best-in-class interest rates on your idle funds. Moreover, if there's a shortfall in your savings account for a transaction, a portion of the linked FD is automatically broken to cover it. The best part is that no penalty is applied for premature closure.
Attractive rewards and discounts
Savings accounts often come with attractive rewards and discounts that help you save more money on daily expenses. By choosing a bank that aligns rewards with your spending habits, you can earn cashback, points, or discounts on various purchases. These perks boost the value of every transaction made using the debit card linked to your savings account.
Tax benefits
Your savings account not only helps save money and earn interest on the same, it also offers significant tax benefits. Interest earned up to ₹10,000 per annum is tax-exempt under Section 80TTA of the Income Tax Act, 1961. This exemption applies to individuals and Hindu Undivided Families (HUFs) who are less than 60 years of age. For senior citizens (60 years or above), this benefit is even more substantial under Section 80TTB. This provision offers senior citizens an annual deduction of up to ₹50,000 on interest income from savings accounts.
Access to additional banking services
A savings account is often the first step in building a relationship with a bank. Once this account is set up, it opens the door to various useful financial services, such as:
- Fixed deposits
- Recurring deposits
- Credit cards
- Insurance products
- Personal loan offers
- Access to mutual funds, bonds, and other investment options
Banks usually consider your savings history and account balance when evaluating your eligibility for these financial products.
Savings accounts: A useful tool for financial growth
As you can see, a savings account has more benefits than just saving money – it acts like a powerful tool that supports various aspects of financial wellness. You get the opportunity to benefit from interest earnings, DICGC-backed insurance, 24/7 liquidity, flexibility of mobile banking, FD-like returns on surplus balance, and additional valuable banking services. Moreover, the availability of different types of savings accounts means you can select an option that best fits your financial goals and lifestyle.
So, what is the wait for? Choose the best savings account for your finances and start leveraging its full range of benefits!
Contributors Suggest Correction
Writer : Eshaan Sanjay Patil
, Editor : Anurag Mazumdar
, Creatives : Eshaan Sanjay Patil
Must Reads
We are an independent and public-spirited digital media platform for Indian millennials. We report news and issues that matter as well as give you the opportunity to take action.
