Four Reasons Why You Require a Savings Account

Savings constitute to be an indispensable part of every person’s life, whether he is salaried or self-employed. The habit of saving is introduced since childhood where you might have saved a few rupees in a piggy bank. This same habit amplifies as you grow and turns you into an investor.

The basic form of investment vehicle for any investor is a savings account. Though many investors are reluctant to choose this option, it is still considered as a viable option. Here are a few vital reasons why you should own a savings account.

Better Liquidity

Equities, stocks, or mutual funds do offer substantial rate of return. However, whenever you invest in such instruments, a certain amount of money gets locked. At times of emergencies, these instruments cannot provide you instant cash, even if they have very short redemption period. Only a saving account offers you the privilege of withdrawing cash at your will. For this purpose, an ATM card is available with every account.

Moderate return rates

Gone are the days when a savings account offered interest rate of 3.5%. After the de-regulation of interest rates from RBI, banks like YES Bank are now offering more than 6% interest on savings account. Moreover, the interest structure is levied according to the amount of balance maintained.

Easy Funds Transfer

A savings account offer additional services of easy and quick fund transfer. Using NEFT and RTGS technologies, you can transfer funds from your account to any other savings account within a few minutes. Such versatility is rarely found in any other investment instrument.

Numerous Extra Services

Apart from typical banking services, banks also provide debit card service, online net banking, easy bill pay, and many other complimentary services with an ordinary savings account. Such services are available at no extra cost, and you can avail them on 24x7 basis.