Why keeping money in your savings account is the safest option
With the cost of living on a rise, it is now necessary for every individual to invest their hard-earned money. While you might want to earn the highest possible returns on your investment, options that generate higher returns also come with a higher level of risk.
Is there an option that can help you earn decent returns while also ensuring the complete safety of your investment? Well, there are a number of options but the safest of them all is a savings account. Let us have a look at why these accounts are the safest and what are the other benefits they offer.
Why are savings accounts the safest?
In simple words, a savings bank account is a deposit account which you hold at a bank. The bank pays interest on the money you deposit in this account. Your money is not invested anywhere, and this makes them the safest option for people looking to earn modest returns on their investment.
Moreover, unlike a bank FD which comes with a lock-in period, the money deposited in a savings account is available at your disposal 24x7. Apart from it being the safest way to invest money, savings bank account also offers a host of benefits such as-
1. Zero maintenance charges
Banks used to charge an annual maintenance fee for maintaining your savings bank account. However, this structure has now been replaced with the monthly average balance charges.
As long as you maintain the minimum balance in a savings account, you are not required to pay any maintenance charges. However, the minimum balance requirements vary between banks. The bank can charge a fee if you are unable to maintain the monthly average in your account.
2. Easy accessibility
As mentioned above, the money you deposit in your savings bank account is available 24x7. Every bank now offers a debit card for such accounts which you can use anytime to withdraw money from your account.
Similarly, you can also use the net banking facility of the bank for fund transfers to and from your savings account from the comforts of your home or office.
3. Many different types of accounts
One of the biggest reasons that make savings bank account one of the best money saving plans is the type of accounts offered by banks. Most banks now offer different types of savings account such as accounts for women, senior citizens and kids and offer a host of additional benefits.
A high interest rate, unlimited ATM transactions, discounts on loan and discounts on locker charges are some of the top benefits of such accounts.
4. Easy bill payments
Many of the banks now also allow you to pay utility bills automatically from your money saving accounts. This ensures that you never miss a deadline for any of the payments which can attract late payment charges.
A lot of reputed banks now also have their mobile apps which you can easily use on-the-go for bill payments.
Your first step to start saving
A savings bank account is the most common and safest way to start investing your money. While the interest you earn on the deposits is modest, there is no option that offers the level of safety that savings bank account offers.
If you are planning to begin your investment journey or just want to park additional funds temporarily, a savings bank account is the best option. Explore more about this safest place to invest money before selecting a bank that offers a decent interest with a host of other benefits.
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