With the increasing demands of a stressful life, the need for making informed investments has become the need of the hour. Everyone wants to invest in a financial instrument that gives quick and high returns; however, high returns always call for high risk. In such an environment, if you are looking to keep your money safe and generate more money, a savings bank account is your best option. With such an account you are assured that there is complete safety of your investment regardless of the fluctuations in the market.
Why Are Savings Accounts Safe?
A basic banking facility, a savings bank account allows you to deposit and withdraw funds from your account, all while generating an interest on your principle sum. However, a lot of people are hesitant about the safety of a savings account. This is where Deposit Insurance and Credit Guarantee Corporation (DICGC) plays an important role. For the safety of the depositors, RBI has formulated a compulsory insurance scheme known as Deposit Insurance and Credit Guarantee Corporation (DICGC) for all commercial as well as cooperative banks. This is a compulsory scheme and no bank can withdraw from this scheme.
The scheme acts as a safety net in case a bank’s license gets cancelled or there is an amalgamation/merger/reconstruction of the bank. Deposit Insurance and Credit Guarantee Corporation (DICGC) insures all types of deposits such as savings, recurring deposit, and fixed deposit. In addition, all the depositors in a bank are insured up to a maximum of Rs. 5,00,000 for both principal as well as interest amount. Depositors don’t need to worry about the deposit insurance premium as this is borne entirely by the insured bank.
A Savings Bank Account Is Easily Accessible
The money that you deposit in your savings bank account is available to you at all times. Withdrawal from your account does not levy any penalty fees and you have the ease of depositing funds in your account at all times and from anywhere in the world. The advent of net banking and mobile banking facilities has further simplified cash withdrawal and deposits into savings bank accounts.
No Maintenance Charges
Most banks no longer charge any maintenance charges to maintain your savings bank account. However, it is important to keep in mind that the minimum balance amount varies from bank to bank. In the event that you are unable to maintain the monthly minimum in your account, some banks may levy a penalty fee.
Enjoy the Convenience of Mobile Banking
Opening the IndusInd online savings account also enables you to enjoy the convenience of mobile banking. You can setup your mobile banking and UPI credentials when you open the online savings account. You can also enjoy the benefits of the industry’s first WhatsApp banking services that will help you get account balances and transaction alerts.
Last Few Words
Your savings bank account is your first step towards your journey in accumulating wealth. Although the interest that you earn on the money that you deposit maybe modest, there is no denying that such an account is one of the safest ways of keeping your money. If you have additional funds that need to be kept away for a rainy day, a savings bank account is the perfect financial instrument for your needs. Before you open up an account, you must explore all your options and settle on one that gives you the highest rate of interest.