A savings account is the most basic type of bank account which enables the customers to deposit their money easily and keep their funds secure. It also provides the feature of withdrawing amount whenever needed. Savings accounts pay interest on your deposits, which helps you grow your money, however, the rates are relatively low on these accounts as the risk is also less. Savings accounts are one of the most liquid investments apart from the demand accounts and cash. While savings accounts encourage savings, they also make the accessibility of your funds easy.
A savings account is mainly beneficial for those people who want to keep their money secure and withdraw from time to time. Here, we have some not very popular uses of savings account that most of the people are not aware of.
LESS KNOWN BENEFITS OF SAVINGS ACCOUNT
Nowadays, almost every bank offers digital wallet services. They may be either individually or in partnership with a third-party service provider. The e-wallets make cashless payments more convenient and sometimes people can also enjoy various offers, discounts and coupons, which can help in saving money.
Many banks run their reward programs, on the other hand, some have an association with companies like PayBack with the help of which the customers can earn reward points. These reward points can be redeemed for purchasing different products or paying bills.
Clean Sweep facility
Some banks provide their customers with sweep-in and sweep-out facility with savings accounts. In this facility, the customer’s savings account is linked to a fixed account. If the amount in the account is greater than the threshold amount, one can choose to have a certain amount swept into your Fixed Deposit and vice versa. The rate applicable to funds that are swept in depends upon the number of days for which the deposit has been kept. The advantage of this facility is that it has a higher rate of interest in comparison to savings accounts. Also, there is much more flexibility to access funds when required through ATM, internet banking, cheque payments etc.
On the basis of the minimum average quarterly balance and the type of savings account the customer chooses, some banks offer a 15-30% discount on locker facility. This facility is mainly for accounts in which the minimum average quarterly balance is Rs 50,000 and above.
Many banks offer special facilities to family members who have an account with them. One of these facilities is clubbing of all family members’ deposits. Some banks even offer educational insurance with accounts for children.
So, these were the various less known advantages of savings account that only a few people might know. And thus, before opening an account in the bank, keep these important points in mind.
With the increasing need for banks in the country, the banking system is increasing its facilities more and more and providing its customers never-ending services to attract them and achieve customer satisfaction.