5 Benefits Of Having A Saving Account In The Bank

 People have lots of aspirations and expectations to achieve in life. They want to live life on their terms and make it perfect. They wish to accumulate as many funds as possible to meet future requirements and fulfill their desires. They earn to live a brighter future and save for emergencies and other expenses that need priority. Youngsters, especially, have lots of passion for achieving their goals but require having sufficient capital to meet them.

Here is where the concept of a saving account comes in. Banks offer different interest rates on these accounts and encourage customers to open an account with them to save for unexpected emergencies and manage funds sustainably. They can withdraw the deposited money at any time and use it for other expenses.

Nowadays, every service and product is available online, so are banking facilities. People can opt for an online saving account opening to escape standing in long queues outside banks and operate from any place in the world. They can check their account balance, transfer funds, monitor transactions, apply for new chequebooks and loans, etc., using the mobile banking app. Smartphone banking is another trend that is becoming popular by the day.

The following are the benefits customers get by opening a bank account:

1. It helps create emergency corpus: Having a savings account helps create emergency funds during unexpected monetary crises. Whether it involves repairing a broken appliance or a medical emergency, the liquidity of these accounts enables account holders to withdraw funds easily at any time. It saves them from running into debts.
   
   
2. It helps protect assets: The assets stored in the account are free from any impact due to market volatilities and fluctuations. For example, money invested in real estate has a chance of delivering higher returns. But, at the same time, unforeseen circumstances may make it difficult to get instant money. Hence, it is safer to get immediate funds with an online bank account opening with zero balance.
   
   
3. International debit card: Having a bank account in India allows account holders to convert their debit cards for global usage and facilities. They can travel all over the world and use it at bank ATMs for transactions.
   
   
4. Easy bill payments: With the help of a bank account, people can pay their credit card bills, utility bills, mobile bills, DTH recharges, etc. directly. They can access the facility on their smartphones and PCs.
   
   
5. Easy account operation: It is effortless to operate a. One can easily open it by visiting the bank branch. Many banks even give the option to extend it online by logging into the website of the bank. They are beneficial for zero balance saving accounts for young people who want to start saving or learning how a bank works.

Benefits of Opening An Online Saving Account

Since years, people have been securing their money in the savings accounts of their banks. It ensures mental satisfaction and asset security for all account holders. Those who have a saving account earn interest on it and use it as and when required. They are easily accessible to the respective account holder and offer services like fund transfers from other accounts using IMPS, RTGS, NEFT, or even UPI, where account holders can earn interest on their deposits.

The applicable interest rates range between 3.5 per cent to 7 per cent per annum and differ bank to bank. Customers have the liberty to deposit or withdraw their money by submitting cheques or withdrawal slips. They can also take the help of ATMs to solve the purpose by applying for debit cards linked to their bank accounts.

The key features of saving accounts
A saving account helps customers track the inflow and outflow of money from their accounts. They enable banks to provide passbooks, debit-cum-ATM cards, cheque leaflets, internet banking facilities, bank statements, and even free SMS and email alerts for every transaction made. Bank account holders have unique and personalised account numbers with no limitation on deposits. Linking recurring deposits or even EMIs to the savings account is possible.

Types of accounts available
There are two types of accounts available:

• Minimum Balance Accounts: Initially, customers had to maintain a minimum balance in their account for the same to remain active. This policy varies, like the rates of interest offered by them. The account holder pays a fine for not following the rules and not maintaining minimum account balance.
• Zero Balance Accounts: With a change in banking services, zero balance accounts have also come in to effect. People convert regular saving accounts to zero balance accounts so that they avoid the penalties in future. Zero balance saving account services are also available.

The eligibility criteria
Those interested in opening accounts in banks need to follow some standard eligibility criteria laid down by banks.

1. The account holder should be a resident of India.
2. The age limit to open bank accounts is 18 years and above. Accounts are available for minors as well that are taken care of by parents/guardians.

There are many eligibility calculators online that can help users determine their eligibility to open bank accounts.

Benefits of opening online savings accounts
Technology has emerged as a winner for all the fields of business and banking. It ensures quick and safe connectivity within parties. The accounts used to save resources, such as income, can be tracked and used to make transactions via the internet or mobile banking apps. Online bank account opening with zero-balance helps increase accessibility by making themselves available on online banking platforms. Online documentation services are also available like KYC. Customers can contact helpline numbers through calls and emails for clarifications of queries or report of issues.

Why Is Zero-Balance Savings Account Popular?

When you visit a bank to open an account, you have numerous options to choose from. For choosing an account that best suits your needs, you must first understand the concepts behind each one of them and be aware of their underlying differences.

Zero-balance savings account
A zero-balance saving account offers you the facility to open an account with no need of minimum balance at the time of opening an account. Usually provided by major banks, zero-balance savings account assists you to withdraw money as and when required, thus addressing your liquidity needs.
In most cases, the account offers additional facilities such as ATM cum debit card, mobile banking, internet banking, and online money transfer.

This saving account is given to the class of customers such as salary account holders and under the Pradhan Mantri Jan Dhan Yojana. PMJDY is a scheme with the aim of financial inclusion.

Features of zero-balance account

• No restrictions on maintaining a regular monthly balance.
• No charges levied on the debit card or ATM card.
• Free passbook issued at the time of opening the account.
• Free net banking facility to account holders.
• Offers unique benefits for salary account holders based on the businesses

Difference between Zero balance savings account and regular savings account
Generally, you must keep a minimum Monthly Average Balance (MAB) in your regular savings account. If it is challenging to maintain the minimum required balance in your account, non-maintenance charges will be levied

Documents required:
For opening the zero-balance saving account, you just must submit the necessary KYC documents like identity and residence proof.

Other benefits of zero balance savings account
High-interest rates: When you open zero-balance savings account online, the interest rates are higher than the manual option. Although no minimum balance is considered for this purpose, the online route has more advantages.

Easy to open: Your PAN and Aadhaar are enough to open zero-balance account. You need to set a PIN then and start using the account. The welcome kit will also contain chequebook and a debit card which is integrated with the mobile banking apps.

No KYC balance up to INR 1 lakh: Such accounts allow you to maintain a certain amount of funds, especially for new holders. The maximum permitted balance by banks is INR 1 lakh.

Transaction charges: One of the many perks is zero transaction costs. If you wish to withdraw or deposit some funds, do not worry about deduction or transaction costs. Mobile banking apps need a unique authentication password known as mPIN for authenticating payments and transactions.

Shopping and entertainment: These are two areas of life that no one wants to comprise on. The virtual debit card enables you to pay for your favourite product at all the sales terminals.

Benefits of savings account opened under PMJDY

• Not required to keep a minimum balance.
• Interest on deposits as per current bank rates.
• Accident-insurance cover of Rs. 1 lakh.
• Direct transfer from government schemes is credited in the account.
• Your have overdraft facility also available for 6 months.