4 Reasons You Need To Open A Savings Bank Account

Being financially independent is a virtue we all hope to imbibe as we grow older. The sense of independence we get from earning and saving money helps us to become financially responsible. When we set out to open our own bank account, we begin to carve the way to financial freedom. Inculcating the discipline to save our money instead of spending it recklessly also helps us achieve many of our dreams and goals. One of the first things you should do when you turn 18 is to open an account to park your savings in it. Here are 4 reasons you need to open a savings bank account today.

It is the first step you take towards building a corpus: Wealth is not built in a day. It takes years of disciplined savings. It is easy to spend money impulsively and recklessly, but if you have a savings account, you can strive to save every rupee you can. Every rupee saved is like a new brick added into building your dream house. Also remember that banks provide interest on the money parked into your account. As your money grows you can use it to invest in various financial instruments such as shares, mutual funds, bonds, equities etc., and begin to build your corpus.

You can choose an account as per your requirements: There is a wide range of accounts you can choose from to park your savings. There are 8 different types of accounts to choose from. These include a regular account, a joint account, a senior citizens account, women’s account, minor account, digital or online savings account, salary account and Pradhan Mantri Jan Dhan Yojana Account. Each account comes with its own special benefits and merits.

Having adequate savings can bail you out of financial emergencies: Life is incredibly unpredictable, as are the expenses that go with it. One moment you could be hale and hearty and in another, you may need medical treatment. You could be employed today but lose your job tomorrow. Such circumstances force us to examine our finances. In the absence of savings, you may need to depend on loans, which need to be repaid with interest rates. If you have some savings parked away, you can breathe a sigh of relief until your situation is resolved. Your savings can act as saviours and bail you out of financial emergencies.

You can accumulate capital for investment: Inflation is a reality that cannot be ignored. The sums you save today can help you in the long run. The only way to conquer inflation is to convert your savings into investments. But you need a capital to begin your investment journey and to make your investment count. Your savings account is the right platform for you to accumulate your investment capital. Regular savings can help you create a significant capital amount. As such, this account makes for the perfect launch pad for all your future investments.

The greatest advantage of having a savings bank account is that savings can be accessed at any given time. Instead of keeping cash in your locker at home, it is better to leave the money in your account for it to grow. With ATMs at every corner, you can access your account at any time, without having to worry about visiting banks during peak hours and so on. Moreover, most banks provide high daily cash withdrawal limits

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