Why Depositing Your Cash in a Savings Account gives you more benefit than Storing It at Home?
In the ever-hustling journey of life, we all strive to secure our dreams and the financial stability that ensures our loved one’s well-being.
At the heart of these aspirations lies our hard-earned money, the fruit of countless hours of dedication and sweat. It’s only natural to want to keep this money close, right at home, where we can see and touch it.
However, sometimes, the path to prosperity is less conventional. And that’s where the power of savings accounts and the convenience of a mobile app come into play.
Why Deposit Your Cash in a Savings Account?
There are many reasons why you should keep money in a savings account, here are a few:
- Earn Monthly Interest
The money you deposit in a Savings Account generates interest income based on the respective savings account interest rate. Thus, the high-interest Savings Account is a smart way to generate additional returns and grow your savings.
- Enjoy Tax Benefits
Under Section 80TTA of the IT Act, you can claim a tax deduction of up to Rs 10,000 on the total interest you generate from savings accounts in a financial year. Interest income of up to Rs 10,000 does not attract any tax.
- Be More Financially Disciplined
The interest you earn from a Savings Bank Account encourages you to save and deposit more of your savings. It teaches a habit of saving and helps strengthen your finances.
- Fulfil Liquidity Needs
With a Savings Account, you can use the money as you like. You can withdraw the funds as and when required, fulfil short-term goals, pay utility bills, shop, and conveniently manage all your day-to-day expenses.
- Secure Your Earnings
Money in a regular savings account is always safer than money at home. Apart from the physical safety of funds, it helps you generate returns without the risks associated with instruments like equities. Moreover, DICGC insures funds of up to Rs 5 lakh in bank deposits.
- Better Expense Tracking
With a high-interest savings account, you can bid goodbye to the conventional practice of manual account keeping. From offline passbooks to net banking and mobile apps, there are many hassle-free modes to track your expenses with the account.
- Easy Access to Your Savings
When you open a savings account online or offline, you’re provided with a Debit Card. With this card, you can withdraw money at ATMs and even make online and offline payments. Moreover, you can also use various digital channels, like Net Banking, Mobile Banking, and UPI, to access your savings.
Risks of Keeping Money At Home
Keeping cash at home is risky. Here are some of the biggest perils of keeping money at home:
- Theft
A significant amount of cash at home always carries a risk of theft. It also puts undue stress on all the occupants.
- No Interest
Money kept at home does not earn any interest.
- Deterioration
While currency notes are more durable and stronger than regular paper, they can still get torn, rot, or mould.
- No Way to Track Your Expenses
Keeping cash at home and using it for everyday expenses makes expense-tracking more challenging.
- Temptation to Spend
The temptation to spend is often higher when you have cash in your hand compared to withdrawing money from a Savings Account.
Conclusion
Your decision to save money at home or in a savings account is about more than simply money; it’s about safeguarding your aspirations.
A savings account provides interest, tax advantages, financial discipline, and ease of use via a mobile app. It’s a route to financial security and wealth.
So, why settle for storing cash under your mattress when you can watch your savings grow and access them effortlessly? Don’t just save money; invest in your dreams with a savings account and its mobile app, ensuring your financial security and the life you aspire to lead.
FAQs
- What is the difference between a regular savings account and a high-interest savings account?
A regular savings account offers the basics, while a high-interest savings account, true to its name, provides a better interest rate on your deposits.
- How can I access my savings account using a mobile app?
Once you’ve opened your account, download your bank’s official mobile app. Then, log in with your credentials. With this tool, you can effortlessly check your balance, make transactions, pay bills, and manage your finances, all from the comfort of your smartphone.
