A savings account is an account, that banks and different credit unions offer because using a savings account people can put their money safely into it and earn interest on their savings. A savings account helps make long-term savings and not for frequent transactions. Read this blog carefully and learn about the process of opening a savings account and the importance of a savings account.
Importance Of Savings Accounts?
Things don’t always go well, everybody has to face some bad days. When you save, a wet day is just a bother. Without saving, it’s a huge disaster that could leave people without homes and kill them.
There are four important reasons for savings:
- Financial Security: Saving is money that gives the saver a safety assurance in case of any accidents or costs an individual didn’t plan for. It’s like having extra money saved up to help the individual saver get through tough times without getting stressed out.
- Peace of Mind: It’s nice to know that the individual has savings. As an individual middle-class person, savings can make you feel less stressed about your future. It makes you enjoy your present rather than thinking about the future.
- Future Goals: Buying a house, starting a business, planning an international trip, or something else. Future can vary per individual perspective and savings can help reach the goal easily.
- Opportunity Fund: Saving money can helps a lot and if an individual saves money, he/she can take advantage of various opportunities, like a great investment, a job change, or the chance to go to their dream college.
Is Saving Accounts Better Than Other Accounts?
Using a savings account is an interesting part of personal spending. A savings account at the bank can help you get richer over time without doing extra work just by keeping your money safe and making it easy to get to. Let’s look at a few of those benefits!
- Interest Earnings: The possibility to earn interest on the money you save in a savings account is among its best features. Though interest rates may vary depending on the bank, any money earned is good.
- Liquid Funds: There is no need to invest in stocks or real estate to get the money in a savings account and this quality makes it a great place to keep cash on hand for emergencies.
This liquidity gives you important peace of mind and financial security.
- Low Risk: The Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) insures savings accounts, which reduces the risk so the user should not worry about their cash in the cafe if their bank fails.
- Automatic Savings Plan: Different banks offer different kinds of bank offers for automatic savings plans as it makes it easy to save for a long time and watch it grow over time.
How To Open Your Savings?
Opening a savings account is now simple. If you follow our mentioned steps you can easily open your savings account at home without making extra effort.
Follow the following steps to open a savings account:
Note: The mentioned steps are for Kotak 811 only.
- Get the Kotak 811 Savings Bank Account Opening app in the Apple or Google Play stores.
- Sign up using your email address and cell phone number.
- Complete your name, address, and birthdate on the application form.
- Post the documentation proving your residence and use your Aadhaar card, PAN card, voter ID card, or passport as your ID, and for your address proof, you can use your electricity bill statement.
- Set up a six-digit Mobile Personal Identification Number (MPIN) and account password that secures your cash in the banks.
- Activate your account by adding at least Rs. 1,000.
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