What Makes Savings Accounts Unique?

Opening a Bank Account is a crucial step to starting your banking journey. It provides you access to a range of features like withdrawal of money at any time and using them wisely. Moreover, digitisation lets you use any of the online mediums to remove or transfer money. Given the normalcy of Savings Accounts, little thought goes into such an activation. Most accountholders treat it as a regular banking product.

While it comes with regular characteristics, it adds value to your financial management. Closer scrutiny of a Savings Account facility exposes its potential to achieve short-term goals. Hence, rather than only using them for accessing funds, you should be aware of their other benefits. This way, you can handle your savings better through Online Banking. The following aspects make it a popular banking product:

Competitive interest rates

The primary purpose of online Saving Account opening is saving and banking. Banks offer various other services with these accounts. Since they aim to provide the best banking experience, the interest rates do not get much attention. As a result, a Bank Account attracts nominal interest, unlike Term Deposits. However, most banks use their discretion to offer competitive rates. You should compare them to get better returns.

Promotional offers

Banks are aware of the demand for quality banking services. They also know that the features are quite similar across varied banks. Hence, they use promotional offers to lure customers. These include lower balance requirements, minimal transaction limits, value-added services, etc. You also receive discounts on Debit or Credit Card usage. These offers get listed on their websites. Checking them before you open Bank Account online enhances your banking experience.

Taxation policies

As you park your income in the Bank Account, it is subject to taxation under the Tax Act. The tax deduction applies to the Savings Account interest rates. Earnings generated below Rs. 10,000 are tax-free. Anything beyond that is taxable under section 80TTA. This limitation extends to Rs. 50,000 for senior citizens under section 80TTB. It is to protect their interests because of their low earning potential.

Efficient payment systems

Fund management also means making regular payments like transfers, clearing bills, shopping, etc. Some of these financial responsibilities have a timeline. You need to handle them well before the due date to avoid defaulting. Banks offer automated and quick payment methods for this purpose. You also get access to them through Banking apps.

Insurance

Safety is of utmost importance when it comes to Online Banking. They value your money and take advanced security measures for its protection. One such effort is to insure your deposits against loss or theft. Hence, the Reserve Bank of India authorises Deposit Insurance and Credit Guarantee Corporation to safeguard your finances.