How to use your Savings Account for more than just transactions?

A Savings Account is a popular option for investments, though it has a reputation for being only useful for daily transactions. Of course, the liquidity factor is a major draw for a Savings Account. However, that’s not the only good thing about it. 

For instance, when Mr. Suraj’s son got admission into an engineering college, he realised that they had very little time left to pay for their son’s higher studies. The amount was so huge that Suraj had to borrow money from some of his office colleagues and relatives. Had he opened a Savings Account, he could have been better prepared for any unexpected expenses. 

1. A way to be prepared for financial emergencies:

It is prudent to save for a rainy day. A Savings Account can help you sail through financial contingencies such as medical emergencies, child’s education, paying for EMIs, etc. Once you bank responsibly with any financial institution, there are pre-approved offers on Loans and Credit Cards, which allow instant disbursal of funds when you need them.

2. A way to start investing:

While the major reason for you to open a Savings Account would be to keep your funds safe, it can also be the reason to begin investments to achieve future goals. With a Savings Account, you get access to multiple investment products like – Fixed Deposits (FD), Public Provident Funds (PPF), National Pension Schemes (NPS), etc. Additionally, you can invest in market-linked products like Mutual Funds and Unit Linked Investment Plans (ULIPs), rather than just keeping the money idle in your account.

Apart from these two benefits, you can avail of the following value-added services:

At present, most banks offer value-added services and several benefits with a Savings Account. 

For instance, ICICI Bank offers discounts on different purchases or Reward Points, or cashback offers on an ATM/Debit Card. In addition to that, you can get foreign traveling insurance, medical or accident insurance and more with a Savings Account. Savings Accounts come with a chequebook, net banking and passbook facility.

For instance, when you open an Insta Save Account at ICICI Bank, you get complimentary Air Accident Insurance of Rs <50,000>. On the other hand, the Advantage Woman Savings Account gets you Accidental and Purchase protection. Then, the Senior Citizen Savings Account gets you hospitalisation allowance of about Rs <30,000>.

• A place for fund collection and making payments:

Your high interest Savings Accountis a great place to collect funds from various sources. As such, there are zero limits on cheques issued/deposited or payments made from your Savings Account. Thus, a Savings Account is easy to operate and own.

• Open a Savings Account as an income-generating source:

Unlike your Current Account, a Savings Account continues to earn interest. So, the balance you earn in your Savings Accounts aids in improving an individual’s income. You will get a higher interest rate when you maintain a higher balance. In some cases, you will get a sweep-in facility that helps to earn a high interest income.

• A way to plan the financial future of your kids:

When you open a Kid’s Savings Account, it can help your kid grasp the basics of operating a bank account better. These are valued financial lessons to help children handle their finances and understand the value of money. Moreover, such a Savings Account also lets you save a good amount for your kids to use, as and when needed.

So, if you are yet to open a Savings Account, it’s high time you get in touch with an ICICI Bank representative about it and enjoy all the benefits of a Savings Account!