Why Keeping Money in Your Savings Account is the Safest Option?

For the money you work so hard to earn, compromising on security is never an option. The safety of your savings is always a top priority. Among various options, a savings account is a simple yet effective choice. It is a type of deposit account offered bank that acts as a safe haven for your funds. Moreover, you can access your funds whenever you need them without any restrictions.

Discussed below are more reasons that highlight why keeping money in your savings account is the safest option.

Savings account interest rates may be seemingly modest but play an important role in preserving the purchasing power of your savings. As inflation erodes the value of money over time, the interest accrued in a savings account can help counter this effect.

Simplyapply for a savings account online with a bank that offers high rates and get a buffer against inflation. This interest compounds over time and offers a steady growth of your savings without exposing you to the risks of volatile market investments.

With your savings bank account, you can channel funds into fixed deposits and recurring deposits to earn fixed returns over a set period. This offers an opportunity to earn a predictable income and increase your wealth in a disciplined manner.

Moreover, the facility to automate investments into mutual fundSystematic Investment Plans (SIPs) and other avenues helps you leverage the growth potential of equity and debt markets. You can make consistent contributions towards your goals without any manual intervention. Such convenience frees up your time and lets you focus on other crucial aspects of life while your savings actively grow.

Savings accounts are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). This insurance covers both principal and interest amounts up to ₹5 lakh. This feature adds a significant layer of safety to your savings bank account and makes it an extremely reliable place to keep your funds.

You can opt for the auto-sweep facility offered by Indus Multiplier Max Savings Account by IndusInd Bank and earn FD-like interest on your surplus funds. Balance above ₹20,000 in your savings account is automatically booked into fixed deposits and earns higher interest. If you need cash, a portion of the linked deposit will be broken without any penalty. Thus, you get the dual benefit of earning FD-like returns while 24/7 liquidity of a savings account.

While savings account interest rates and deposit insurance coverage already present compelling reasons to maintain one, here are more benefits you can capitalise on.

Earn cashback and rewards

Enjoy cashback and rewards on purchases made through debit cards and save on everyday expenses.

Digital banking services

Access online banking, mobile apps, and e-statements for convenient account management anytime, anywhere.

Insurance benefits

Benefit from complimentary insurance coverage, including accident and health insurance, with certain accounts.

Multiple types of savings accounts

Choose from different savings bank accounts, such as kids, women,and senior citizen accounts.

Discounts on lockers

Receive discounts on safe deposit locker fees and protect valuable items at reduced costs.

Exclusive banking privileges

Benefit from priority service, higher transaction limits, and exclusive banking channels for premium account holders.

The value of opening a savings account

Savings account benefits are numerous. A savings account offers a combination of security, growth, liquidity, and flexibility. These factors together make it an important part of one's financial portfolio.

From earning interest andautomating investments toDICGC insurance and rewards on transactions, a savings bank account does more than just secure your money. It actively contributes to your overall financial well-being. 

As such, the decision to maintain a savings account is not just a prudent one but a crucial step towards securing and growing your wealth over the long term. Apply for a savings account online now and leverage the benefits it offers.

What happens when you don't maintain the requisite monthly average balance in your savings account?