Why is putting your money in a savings account better than keeping it at home?
In our ongoing journey of life, we all strive to achieve our dreams and financial stability which secures our loved ones’ 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 prosperity comes in strange ways. And this is where saving accounts come into play or when you need them for emergencies.
Why keep Your Money in a Savings Account?
There are various reasons why one should put one’s money in the savings account as discussed below:
Accumulate Monthly Revenue
The funds that you save into a savings account earn interest income relative to the respective interest rate on that particular savings account. Therefore high interest Savings Account is a smart way to generate additional returns and grow your savings.
Enjoy Tax Advantages
Section 80TTA grants tax benefits up to Rs 10,000 on interest generated through saving accounts during one FY. Any interest earned up to INR 10,000 does not attract any taxation.
Cost Discipline
The interest that you earn from Bank Saving Accounts gives you an incentive to save more and deposit larger amounts into your bank account. It trains the habit of saving while making your financial condition stronger.
Satisfy Liquidity Requirements
Money from Savings Account can be used freely. You may withdraw this amount whenever necessary—meet short-term targets; pay utility bills; shop properly and manage all daily expenses most comfortably.
Make Money Safe
Keeping money in a normal savings account is safer than keeping it at home. Besides guaranteeing safety for funds physically, it allows its owners to make returns without taking risks linked with investments such as stock markets. Furthermore, DICGC insures bank deposits up to INR five lakhs.
Improved Expense Monitoring
With a high-interest savings account, conventional practices of accounting are abandoned. Instead of having passbooks and other stationery that were used manually, there are several ways through which the account holders can monitor their expenditures without much difficulty as explained below.
Save Your Savings Easily
When you open a savings account, whether online or offline, you will be provided with a Debit Card. With this card, you can withdraw money at ATMs and even make online and offline payments. Moreover, there are also digital channels like Net Banking Mobile Banking UPI etc., through which you can access your savings.
Hazards of Keeping Money at Home
Keeping cash at home is dangerous. The major risks involved in keeping cash at home include:
Robbery
Lots of cash in house always poses likelihood of theft; it also strains everyone inside the house unnecessarily.
No Interest
Money kept at home does not earn any interest.
Deterioration
However they get torn due to wear n tear or get spoilt by bacteria because currency notes are made from more robust paper than ordinary paper.
Expenses could not be traced anywhere else
The practice of keeping money at home and using it for daily expenses makes expense-tracking cumbersome.
Incentive to Spend
You are more likely to feel like spending money when you have cash in your hands than taking it out from a savings account.
Conclusion
Your decision about whether to keep your money at home or in a savings account is not just about money; it’s about preserving your dreams.
A mobile app provided by a savings account earn interest, tax benefits, financial control and convenience. It serves as a path to financial independence and affluence.
Therefore, why keep your cash under the pillow while you could be witnessing growth in savings that you can access easily? Don’t save only save but put your dreams into action through opening a saving account and its mobile app which will secure your finance and how you want to live.
FAQs
What is the difference between a regular savings account and high interest savings?
The former offers basic services while the latter has unambiguous nomenclature: higher interest rates on deposits made.
Can I access my Savings Account using Mobile App?
First open an account then get hold of the official mobile application of your bank. Next log in with your login information. With this tool, one can easily check his/her balance, perform transactions, pay bills or do budgets right from the comfort of his/her phone.
