Individuals who do not own businesses and intend to save their earnings are often advised to open a savings account. It makes sense as a savings account keeps your money secure and grows it over time at a fixed interest rate. Let us look at savings accounts, how they function, and how you can open one.
What is a savings account?
A savings account is easily accessible via various online services offered by banks, such as net banking and mobile banking. Every savings account owner is assigned a unique 11 to 16-digit account number required while carrying out any banking service.
How to open a savings account?
There are several methods to open savings account in your name if you are eligible to open one. One of the easiest ways is to open one online. You can also open a savings account by visiting a bank branch. The documents required to open a savings account with IDFC FIRST Bank are your PAN (Permanent Account Number) and Aadhaar number.
What are the eligibility criteria for opening a savings account?
The eligibility criteria to open a savings account are:
- The individual needs to be an Indian citizen.
- If the individual is a foreign national and wishes to open a savings account, they can do it jointly with an Indian citizen.
- A member of a Hindu Undivided Family (HUF) can also open a savings account.
How to save money?
For salaried individuals, savings constitute an essential part of their personal finance. A savings account does more than save your money. It also grows over time and provides liquidity to the account holder. It is straightforward to withdraw cash from a savings account or deposit money into a savings account, with mobile banking making the procedure seamless. You can continue adding money to a savings account through one of the following ways:
- Cash deposits or cheque deposits at a bank branch
- Direct deposits
- Online transfers from another bank account via net banking
- Cash deposits or cheque deposits at an ATM
- Online transfers from another bank account via mobile banking.
What are the benefits of opening a savings account?
- Higher liquidity: A savings account offers high liquidity. Withdrawing your money from a savings account takes seconds using a mobile banking app.
- Safety: Depositing your money in a savings account is the best way to keep it secure.
- Interest rates: Customers tend to select a bank to open a savings account based on the savings account interest rates. It allows you to earn money on your savings by just keeping it deposited in the bank.
- Inculcates financial discipline: Keeping your money in a savings account instead of encashing it and keeping it at home as cash can help you cut spending and unnecessary expenses.
- Instant payments: A savings account allows you to make secure payments instantly.
If you are eligible for a savings account and have not opened one yet, open one at the earliest, and start saving today.