Articles

Benefits Of Opening Savings Account Online

by Shashank Bhaskar Finance Adviser

A Savings Account is a formal relationship that a person builds with the bank initially. If you want to apply for a Personal Loan or Credit Card, invest in Mutual Funds or buy an Insurance Policy, open an account. While transacting is the primary function of this account, it also has a slew of other advantages:

Helps save and earn

An online Bank Account offers interest rates of around 3%, allowing you to earn while you save. Some accounts pay the same or about 7% interest if you keep a higher balance in the account. Furthermore, interest earned on this account is tax-free up to a maximum of Rs. 10,000 yearly, according to the Income Tax Act, 1961.

Debit Cards

Several accounts provide a Debit Card that allows you to shop online and offline. This eliminates the need to always carry cash with you. Banks also offer discounts on specific brands and cashback offers on debit card purchases, which you do not receive if you pay with cash.

Excessive liquidity

There is no time limit on the money you store in your Saving Bank Account. This account allows you to withdraw funds anytime, anywhere. You can do so using an ATM or a check at a bank branch.

Digital services

The use of an account is a must for making digital payments. Through this account, you can access the UPI-based or Banking app. Shop online using these digital services if you want to. The emphasis on digital transactions will only grow in the future because they are faster and easier.

Value-added services

Banks offer services such as Internet Banking, chequebook, and passbook the moment you open a Bank Account along with Debit Card discounts and cashback. Depending on the customer segment, some accounts also provide Insurance.

Emergency fund

The account is an excellent place to store your emergency fund. It instils the habit of saving. These funds serve as a safety net if you need money for an unforeseen expense, such as medical bills. You would want your emergency savings to be in an account with instant access, so there are no penalties and you can withdraw your funds whenever you need them.

Receive funds easily

Online Savings Account opening is an excellent way to receive funds from third parties in addition to making payments. There are no limitations on the cheques deposited or issued. Additionally, there is no limit on the number of payments made to and from this account. This implies that you have a trouble-free experience in owning and operating this account.


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About Shashank Bhaskar Innovator   Finance Adviser

14 connections, 1 recommendations, 85 honor points.
Joined APSense since, August 9th, 2018, From Mumbai, India.

Created on Feb 15th 2022 02:37. Viewed 245 times.

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