India is a land of opportunities, with a fast-growing economy, a rich cultural heritage, and a growing middle class. As the country continues to develop and prosper, there are numerous reasons why keeping your savings account is a smart choice for you to prosper financially. Savings accounts are a popular choice if you are looking to save money. They offer a variety of benefits, from easy access to funds to the ability to earn interest on your savings.
5 reasons why you should consider keeping your savings account
- Interest rates
One of the top reasons to keep your savings account is the interest rates. Banks offer competitive interest rates on savings accounts, making it a lucrative option for people who want to save money. In addition, many banks offer additional interest rate benefits for senior citizens, which can further increase the interest earned on your savings.
- Easy access to funds
Another reason to keep your savings account is the easy access to funds. Most banks offer online and mobile banking services that allow you to check your account balance, transfer funds, and pay bills from the comfort of your home or office. You can also withdraw cash from ATMs or use your debit card to make purchases at merchants worldwide. There are no restrictions or penalty fees, and you can access your funds any time you like.
Banks offer a wide range of services, making it easy and convenient for you to access your savings accounts. Most banks have a vast network of branches and ATMs nationwide, making it easy to access your funds. In addition, most banks have online and mobile banking services, allowing you to check your account balance, transfer money, pay bills, and much more from the comfort of your home.
- No minimum balance requirement
Many banks offer certain types of savings accounts that do not require a minimum balance. This means you can open an account with zero balance and deposit money at your convenience. It is a great advantage for those who are just starting to save money or have irregular income streams.
- Multiple savings account options
Banks offer various savings account options to cater to diverse needs. You can choose a basic savings account, a zero-balance account, or a premium account that offers additional benefits such as higher interest rates, cashback, and rewards. Some banks offer special accounts for women, senior citizens, and minors.
- Tax benefits
Keeping your savings account can also provide you with tax benefits. Interest amount earned on savings accounts is taxable in India. Still, under section 80TTA of the Income Tax Act, 1961, you can claim a deduction of up to Rs 10,000 on interest earned from savings accounts in a financial year. This can be particularly beneficial for those who are looking to save money on taxes.
Keeping your savings account can provide you with a wide range of benefits, from higher interest rates and safety and security to convenience and tax benefits. Moreover, with the growth of the Indian economy and the increasing number of investment opportunities available in the country, keeping your savings account can be a smart financial decision.