6 Savings Account Uses You Must Know About

SUMMARY: A savings account keeps your savings safe and earns you an interest. But it also serves numerous other functions such as automating bill payments, giving access to rewards, and helping build a positive credit report.

Most people today get initiated into the world of banking through a basic savings account. Interestingly, it is commonly the first-ever bank account an individual opens, as a student or rookie employee, rendering it special in collective memory. However, while everyone is familiar with the rudimentary usage of a savings account – it safeguards your savings and yields an interest on them – not many are aware of its various other functions. If you wish to tap into the diverse utilities of your savings account, here are 6 savings account uses you must know about.

1. Makes Automated Bill Payments

Say goodbye to the tedious task of paying various utility bills individually every month! Automate bill payments, setting standing instructions for your bank to make automatic payments before the last due date using the money from your savings account.

1. Enables Digital Payments

A savings account allows you to make digital payments via UPI (Unified Payment Interface) or net-banking. What’s more, you may use your savings account-linked debit card to make instant payments for your purchases. It’s worth remembering you can’t have a debit card without a Savings Account.

1. Eases the Process of Income Tax Returns

Your savings account typically has a record of all your income, expenses, and investments. You can easily download your bank account statements for income proof, easing the process of filing your income tax returns.

1. Gives Access to Offers & Rewards

While credit cards are well-known for offering rewards, cashbacks, and discounts, leading banks such as IndusInd Bank offer attractive rewards and cashback even on shopping with your savings account-linked debit card.

1. Creates a Foundation for Getting Credit

A savings account gives you an opportunity to display healthy financial habits, including maintaining a stable bank balance and sound financial history. On this basis, your bank could decide to extend credit to you, such as a credit card or loan on favourable terms.

1. Instils Financial Discipline

A savings account can help instil the habit of saving, inculcating financial discipline. For instance, you could open a separate savings account and transfer a part of your income to it every month till a lump sum amount – including the interest income – accumulates, allowing you to fulfil a financial goal. You could also opt for a sweep facility wherein any excess funds lying in your savings account can be transferred to a fixed deposit, allowing you to enjoy higher interest earnings.

Recent years have seen an evolution of savings accounts, in keeping with rapidly changing customer needs and preferences. This is primarily the reason why top banks have begun offering different types of savings accounts, tailored to meet a variety of savings requirements. Best of all, the process of opening an online savings account has become really simple, taking no more than a few minutes.

Apply for a savings account today!

“Prakhar is a, writer, and author of the new novel We Were Already There.” If your work has won any prestigious awards or earned bestseller status, make sure to mention that here, too.