Opening a Bank Account is crucial for starting the banking journey. It offers a range of features to access funds and use them wisely. Moreover, digitisation allows you to access your funds through Online Banking. Given how standard and important Savings Accounts are, there is little thought about activation. Most accountholders consider it as a regular banking product. While it boasts of simple characteristics, it adds value to your financial management.
A closer check on its facilities exposes its potential to achieve short-term goals. Hence, you need to understand its benefits rather than treating it as using the funds. This way, you can handle your savings better, thanks to online mediums. Here are other unknown facts about Savings Account:
Competitive interest rates
A reason to open a Savings Account is savings and access better banking facilities. Banks offer numerous services on the same. Since they provide the best banking experience, interest rates get less attention. Hence, a Bank Account offers nominal interest, unlike Bank Deposits. However, many banks use their discretion to offer better rates. So, compare them to get better rates.
Promotional offers
Banks know the demand for quality banking services. They also understand that the features are almost similar across banks. Hence, they use promotional offers to attract customers. This includes lower balance requirements, minimal transactional limits, value-added services, etc. You can also claim discounts on Debit or Credit Card usage.
These offers are listed on bank websites. So, check them before you open the account to enhance your banking experience.
Tax benefits
When you deposit some funds in your Bank Account, it is subject to taxations under the Income Tax Act. The tax benefits apply to the Savings Account interest rates. Earnings generated below Rs. 10,000 are tax-free. Anything beyond Rs. 10,000 is taxable under section 80TTA. This limitation extends to Rs. 50,000 for senior citizens under section 80TTB. It also protects their interests because of their low earning potential.
Effective systems
Fund management also involves systematic payments like transfers, clearing bills, shopping, etc. These financial responsibilities have a deadline. You need to handle them before the due date to avoid defaults. Banks have automated and quick payment methods for the same. You can access them through Online Banking mediums.
Insurance
Safety is highly important when it comes to online accounts. Banks value your money and have advanced safety measures for this purpose. One such is ensuring your funds are secure against losses or theft. Hence, the Reserve Bank of India has authorised Deposit Insurance and Credit Guarantee Corporation to safeguard your finances.
