Life’s most significant achievement is living comfortably along with the completion of dreams and wishes. Even if you can meet your daily needs, you might have some future aspirationswhich require financial assistance. Also, it is equally important to stay financially prepared for times of crisis. Hence, a wise decision would be to have a savings account as your financial back-up.
A savings account can be used to accumulate small amounts of money on a monthly basis, whilealso earninginterest and further increasing your savings.
Apart from its primary purposeas a souce of liquid finances and interest earner,a savings account can also help you make multiple investments in different avenues. Thereby, maximizing benefits gained from a savings account.Many people are not aware of the full potential of a savings account that restricts them to use it only for savingmoney.
You can look at the following points to know how to maximize saving benefits:
1. Make Investments
Manyfinancial instruments in the market are available for investment. You can use a savings bank account to set up SIP (Systematic investment planning) for investing in mutual funds.Another way of maximizing benefits through a savings account is toopen a bank RD (Recurring Deposit)or FD (Fixed Deposit) for a stipulated period.
Additionally, you can invest in securities by opening a Trading and Dematerialized (Demat) account. Investments made in fixed deposits (FD) and public provident funds (PPF) through net bankinggain a good interest over time. You can invest in such instruments through your bank’s saving account as well. You will gain access to the financial dashboard where you can see all the investments made from your savings account through net-banking or mobile apps.
2. Set Up Bill Payment
Third-party utility bills can also be paid using a savings account.These payments include mobilerecharge, tax payments, loan EMI’s (Equated Monthly Installment) and insurance premiums.
Income Tax Compliance
The savings account records the income generated as well as the expenses incurred. Matching income with funded assets can be easily traced. The annual statement provided by the bank offers a record of the total income earned over a month or year. This income includes the earnings from salaries, gifts, interests, rents, profits and others. Hence, it is an essential document for income tax observance.
3. Leverage Relationship With Bank
Ahealthy banking relationship can help you avail additional benefits offered by your bank, depending upon the size of your savings account.Includingproducts and services such as credit cards, pre-approved loans, overdraft facilities, waiver of service charges, discounts on specific purchases and more. Keep your savings account running or operational to get maximum benefits. It will also further improve your customer record with the bank.
4. Make UPI Payments
There are online services which can be linked to your savings account, such as making digitalpayments.Unified Payment Interface - UPI is one such method of making digital payments.With UPI, you can pay bills, recharge your services, transfer money to another account, or receive funds conveniently.
Ensure To Maximize Benefits with Savings Account
While having a savings account is typical, utilizing it to the fullest is rare. You should be aware of the opportunities a savings account providesto maximize benefits. Therefore, make sure that you follow the pointers discussed above. Reliable banks such as Axis Bank offer various savings account options with maximized benefits. They haveexcellent customer support that can help you solve queries for opening and maintaining a savings account. Make sure to select the most viable alternative to ensure getting paramount returns.