The Role of Savings Accounts in Achieving Financial Goals
July 05, 2025

Did you know that more than 77% of Indians don't have a savings account? Yet, a Savings Account is one of the most effective tools for financial planning. Whether you're saving for an emergency, a large purchase, or retirement, setting up a savings account is crucial in helping you achieve your financial goals. Here, we'll explore the role of savings accounts in financial goals and how to use them.
Role of Savings Accounts in Financial Goals
A savings account is more than just a place to park your money. It plays an integral role in creating a strong foundation for your financial planning and long-term wealth-building strategy. Here's how:
1. Emergency Fund
Having a readily accessible emergency fund is crucial for managing life's unpredictable events, such as medical bills or sudden job loss. A savings account ensures that your emergency fund remains separate from your daily expenses. By achieving your goals with savings , you can better prepare for these unexpected situations.
2. Save for Big Purchases
Whether you want to buy a car or fund your child's education, saving for large expenses becomes easier with a goal-oriented savings approach. You can gradually build up the necessary amount by setting aside money regularly in a savings account.
3. Achieving Long-Term Financial Goals
Many people use their savings accounts for long-term objectives such as retirement. By saving consistently, you can build a robust fund for the future while also earning interest on your deposits.
Let's say you want to save ₹1,00,000 for a family vacation in 12 months. By depositing ₹8,500 every month into your savings account, you can reach your target within the desired timeframe, thanks to automated savings and interest earnings.
1. Liquidity
Unlike fixed deposits or other investments, a savings account allows you to access your funds when needed without penalties, making it ideal for both planned and emergency expenses.
How to Use a Savings Account for Goal-Oriented Savings
Effectively using a savings account for financial goals involves careful planning and disciplined saving. Here's how you can align your financial goals with a savings account:
- Set Clear Goals: Define short-term and long-term objectives, like building an emergency fund or saving for a home.
- Automate Savings: Use automatic transfers from your current account to your savings account, ensuring consistent contributions effortlessly. Ujjivan Small Finance Bank offers this feature.
- Choose the Right Account: Choose a savings account with competitive interest rates and flexible options. Ujjivan SFB provides easy tracking and management.
- Monitor and Adjust: Regularly review and adjust your savings plan to align with your changing financial goals.
Final Thoughts
A savings account is essential for anyone looking to achieve their financial goals. Whether you're saving for a short-term objective like a vacation or a long-term goal like retirement, a goal-oriented savings plan can help you stay on track.
If you're just starting out in your savings journey, opening a Savings Account with Ujjivan Small Finance Bank can be a good start. We have a wide variety of Savings Accounts catering to different financial needs - sign up for the one that meets your financial goals. Alternatively, you can browse through Ujjivan SFB product suite - our wide range of financial products are designed to make your financial life better.
Disclaimer:
The contents herein are only for informational purposes and generic in nature. The content does not amount to an offer, invitation or solicitation of any kind to buy or sell, and are not intended to create any legal rights or obligations. This information is subject to updation, completion, amendment and verification without notice. The contents herein are also subject to other product-specific terms and conditions, as well as any applicable third-party terms and conditions, for which Ujjivan Small Finance Bank assumes no responsibility or liability.
Nothing contained herein is intended to constitute financial, investment, legal, tax, or any other professional advice or opinion. Please obtain professional advice before making investment or any other decisions. Any investment decisions that may be made by the you shall be at your own sole discretion, independent analysis and evaluation of the risks involved. The use of any information set out in this document is entirely at the user’s own risk. Ujjivan Small Finance Bank Limited makes no representation or warranty, express or implied, as to the accuracy and completeness for any information herein. The Bank disclaims any and all liability for any loss or damage (direct, indirect, consequential, or otherwise) incurred by you due to use of or due to investment, product application decisions made by you on the basis of the contents herein. While the information is prepared in good faith from sources deemed reliable (including public sources), the Bank disclaims any liability with respect to accuracy of information or any error or omission or any loss or damage incurred by anyone in reliance on the contents herein, in any manner whatsoever.
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FAQs
1. How much should I aim to save each month?
Financial experts often recommend saving 20% of your monthly income. However, the ideal amount varies based on individual circumstances and goals. Start with what you can afford and gradually increase your savings rate.
2. Can I have multiple savings accounts for different goals?
Having multiple savings accounts for different goals is a smart strategy. It helps you track progress towards each goal separately and prevents you from dipping into savings earmarked for other purposes.
3. How often should I review and adjust my savings goals?
Reviewing your savings goals at least once a year or whenever you experience significant life changes is advisable. Regular reviews ensure your savings strategy aligns with your current financial situation and long-term objectives.
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