When you start earning, you have several personal and professional duties to meet. You drop off kids at school, meet office deadlines, do onsite visits and client meetings, do grocery shopping, etc. The list is long, leaving you little time to visit the bank branch for transactions. So, opening Savings Accounts is ideal after college or once you start working. However, there is no perfect age.
You can open Savings Account at any age and open one for your child the day they are born. The sooner you realise its importance, the better. They provide multiple benefits and features:
Park funds
If you hold excess funds lying around, deposit them in a Bank Account, as they are a safe and convenient investment option. You can earn interest from them, invest in the Stock Market, or apply for Loans.
Get Debit Cards
You can use your Debit Card to withdraw cash and pay at stores or online. You this way save the hassle of carrying cash along with you and worrying about its safety. All banks follow security protocols to maintain their investments safely and away from the public eye. Since it is connected to your Banking app, you instantly receive all the transaction notifications.
Numerous deposit options
A Bank Account lets you easily open Fixed Deposit or Recurring Deposit that pays higher interest. You can also invest in other financial instruments like Bonds, Mutual Funds, apply for Loans, etc.
Allows fund transfers
You can quickly transfer money to someone, personal or business, in minutes. You need not carry cash, meet the person, and exchange money. You can perform the transaction anywhere through smartphones if the account has sufficient funds.
Insurance
Some banks also provide Insurance Policies with their Debit Cards or Savings Accounts. You can get insured for personal accidents and health for a nominal premium, if not free. Buy the scheme directly from the bank via their portal and enjoy different features and benefits.
Types
There are different accounts for people of all ages, from infants to senior citizens. With the digital trend replacing all manual processes, you can approach a bank for an online Saving Account opening through the app than the bank portal or visiting the branch. Here are the categories Savings Account covers:
Minors
Most banks offer accounts to minors who have set spending limits to help them learn about finance and budgeting. They can open such accounts with their parents or guardians. Such an account teaches them the value of money and develops a saving habit at a young age.
Adults
Today, companies can open an account for all their employees. Self-employed people open Savings Accounts for carrying out business and other related transactions. You can use them for short or long-term goals like marriage, emergencies, and retirement.