Savings Account Benefits You Might Not Know About
October 05, 2024
Your Savings Account is not just a cash repository. It carries a host of features and functionalities. However, you might not be fully aware of the potential of your account. These hidden features of your Savings Account, if unlocked, could make your financial life more convenient, and even help you save more.
This blog is a deep dive on the multifarious aspects of Savings Account.
1. Higher Interest Rates: Earn More on Maintaining an Average Balance
Maintaining substantial average balance in your Savings Account can unlock higher interest rates. Some banks like Ujjivan SFB offer customers higher interest rates basis of the balance maintained in their Savings Account. This encourages prudent financial management and rewards individuals who actively save and manage their finances.
2. Maximum Convenience with Digital Savings Accounts
An Online or a Digital Savings Account mitigates the need for bank branch visits, saving both time and effort. You can manage such accounts entirely online or through mobile banking app. Additionally, there’s no paperwork required to open your account. Just enter your PAN and Aadhar details, make necessary payment and complete your Video KYC to open your account. However, you need to ensure that your mobile number is linked to Aadhar – it’s a must.
Also, Digital Accounts integrates additional security measures such as encryption, multi-factor authentication, and monitoring for suspicious activities. This helps protect your finances from fraud and unauthorised access.
3. Automated Bill Payments: Simplify Your Financial Life
Paying bills can feel like a chore, but a Savings Account can be your secret weapon to streamline payments. Most banks let you automate bill payments, sparing you from the trouble of manual transactions. You can set up standing instructions against your Savings Account for bills like credit cards, utilities (electricity, water, phone, internet), and insurance premiums among others.
By automating bill payments, you ensure that you never miss a due date. This will also save you from late payment fees.
4. Sweep-in Facility: Grow Your Savings Effortlessly
If you struggle with disciplined saving, you can opt for a sweep-in facility. This feature allows excess funds in your savings account beyond a certain threshold to be automatically transferred to a linked Fixed Deposit account. With this feature, you can maximise your savings potential.
5. Investment Opportunities: Consolidate Your Financial Portfolio
Certain banks offer integrated savings, trading, and Demat accounts. This integration allows you to invest in stocks, bonds, and mutual funds directly from your savings account. By providing an all-in-one platform for your financial needs, these accounts simplify the investment process and make it more convenient for you to grow your wealth.
6. Rewards: Enjoy Banking Perks for Being a Savings Account Holder
Savings Accounts come with feature-rich Debit Cards that offer special discounts on transactions and purchases, travel benefits like complimentary airport lounge access, higher limits on transactions, etc. Some Debit Cards offered by Premium Savings Accounts may also come with extensive insurance coverage.
7. Internet and Mobile Banking
In this digital era, convenience is the key. With Internet and Mobile Banking, you can stay connected to your account 24/7. Just so you know, Ujjivan Small Finance Bank offers mobile banking facilities in 9 different languages.
8. Locker Facility: Secure Your Valuables at Discounted Rates
If you're looking for a secure spot to stash your valuables, consider reserving a locker at the bank where you maintain your savings account. Nomination facility is available on Safe Deposit Lockers that facilitates hassle-free release of the locker contents to the nominee in case of any unforeseen events.
Final Thoughts
From higher interest rates to convenience, there are many such Savings Account benefits that can help you make the most of your savings. By understanding and utilising these account advantages, you can improve your financial management and achieve your goals more effectively.
If you're just starting out in your savings journey, opening a Savings Account with Ujjivan Small Finance Bank can be a good starting point. 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.
FAQs
1. What are some of the hidden savings account benefits?
Common Savings Account benefits include features like attractive interest rates for maintaining a substantial balance and the convenience of managing your finances digitally.
2. How can I qualify for higher savings rates?
To qualify for higher savings rates, you typically need to maintain a substantial average balance in your savings account. The specific requirements may vary from bank to bank.
3. What are digital savings account advantages compared to traditional accounts?
Digital Savings Accounts offer maximum convenience like 24/7 access to your funds, instant fund transfers between accounts, competitive interest rates, and seamless integration with online banking tools, to name a few.
4. How can I set up automated bill payments?
You can set up automated bill payments by contacting your bank and providing the necessary information to set recurring payments for your bills.
5. Are sweep-in deposits safe?
Yes, sweep-in deposits are safe as they are linked to your savings account. You can withdraw the funds from the fixed deposit whenever you require them.
6. Can I invest in stocks through my savings account?
Some banks offer integrated accounts that allow you to invest in mutual funds. You can inquire with your bank about the investment options available.
7. Can I link my savings account to multiple fixed deposit accounts?
It depends on the bank's policy. Some banks allow you to link your savings account to multiple fixed deposit accounts, while others may have limitations. Contact your bank for more information.
8. What kind of rewards can I expect as savings account benefits?
Savings Accounts come with Debit Cards that may offer rewards such as complimentary domestic airport lounge access, free accident insurance covers, merchant offers, and more. The specific reward schemes may vary across Debit Cards.
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