What makes Savings Accounts so popular amongst youngsters?

Making investments are ideal for you in the long run. You need these funds to fulfil all your desires and wants, irrespective of whether they are essential or luxurious. You can always earn and save them by opening Savings Account in any of the Indian banks. It helps you make interest and keeps the money safe. 

The other reasons why several youngsters are considering a Savings Account are:

Carries out different financial transactions 

You can always use the account to send and receive payments. It serves as a base for all your financial transactions and lets you meet any emergency fund requirements. You can use different transaction facilities, such as Debit Cards, cheques, withdrawal slips, Online Banking, etc. You can also use the modes like NEFT, IMPS, and RTGS for fund transfers.

Reasonable interest rates

Savings Account interest rates range from 3% to 7% yearly. According to the repo and reverse repo rates of the Reserve Bank of India, most banks offer reasonable interest rates. Remember that if the interest rates exceed Rs. 10,000 in a financial year, you need to pay taxes on it.

Minimum balance maintenance

Ensure you maintain a minimum balance in your account, failing which you need to pay the penalty to the bank. The minimum average balance and penalty rates are different between banks. Read and clarify the terms before online saving account opening.

Passbook and cheque facilities

Almost every account offers this facility. You get a passbook and cheque mentioning your account details during the account initiation and activation. While the passbook records your transactions, you can withdraw money using a cheque. You can also issue the cheque to someone and withdraw cash from the ATM through Debit Cards.

Additional benefits

Most banks have other provisions for their customers when they open an account. Some banks allow you to open a Demat Account, which you can use for trading in the stock market. They also provide a free-locker facility to store essential assets. You can also earn decent interest rates from the bank.

Universal accessibility

Many banks have gone digital to reach their customers and swiftly provide financial products and services. You can open the account online from the portal or the Banking app without physical visits. It is accessible to all age groups, including minors. You need to submit the relevant documents and complete the Know Your Customer procedure.Given the high expenses and responsibilities, it is simple to open a Savings Account and operate it. You can use the account to meet liquid investments besides other accounts and cash. It also provides unlimited access to funds.

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