Start Saving Your Money

Banks like commercial, co-operative, public or nationalized and post offices accept deposits by means of opening savings accounts with them.

Savings accounts are generally opened by working class people or who have a fixed regular income. Savings accounts can be opened by students, senior citizens, etc. Savings accounts are usually opened to encourage people to save their hard earned money and collect the returns on their savings.

Nowadays, savings accounts are opened by depositing Rs.10, 000. The savings accounts enable users to withdraw or deposit money whenever they want to.

The money saved in a savings accounts grow with certain rate of interest levied on the account which can be attractive but mostly nominal. The interest rates usually vary between 7% to 9% per annum. The interest rates vary on the amount that is deposited in the savings accounts, schema under which the account was opened and its maturity range. It is also subject to vary basis banking policies or current market or financial trends.

Some of the important features of savings accounts that one should always remember are though there is no restriction on the amount that is being deposited but there is always a minimum limit that savings accounts have and one should maintain that limit to avoid any penalty in the future. However, in India if the deposit amount is more than Rs.50, 000 then you would be asked to furnish your PAN card as a proof.

Do keep in your mind that, you can’t avail a loan against your savings accounts from any bank or financial institution. But you can link your savings accounts for paying monthly amortization for your various loans.

The advantages of having savings accounts are it inculcates the habit of savings. It is another mode of earning by the interest that you get on the account. It provides immediate capitals as and when required.

Summary: Savings accounts are very useful and serve the purpose of regular savings and give us an opportunity to park our money for later disposition. When there is enough money in the account, you can fix that amount or can use it for other investment plans.