I was in standard five or six when I got my first savings account. I remember one fine morning my father took me to a branch office of State Bank of Hyderabad, which was pretty close to my place and a few day later I was handed with a passbook. At that age of mine the only bank that existed to me was Bank of India, where my father used to work. He could have had it opened in his branch too, but he was posted in a different city then which is why he opened it here. The truth is he wanted to inculcate saving habit in his kids and make sure the bank is easily accessible so I could go there on my own to deposit the my saving.
Like any other kid, I preferred using my pocket money on chocolates or anything that pampered my taste buds rather than going to a bank and put it in a savings account. I didn’t bother much. I remember going to the branch once or twice under the instructions given by bapa but the so called saving habit didn’t last much.
So many years have passed since then. I am sure the account must have become dormant and eventually inoperative.
But the truth is that was the only saving account I had for all these years. Only after I joined a public sector bank in 2013 I created my first functional saving account.
This time the bonding is different. I had full control over my account and there was a whole new angle of looking at this.
Now a days when kids, teenagers, or school students, come to open a saving account they already know so much. And you can easily see the excitement they have especially when it comes to ATM cards and net banking. But I also realized that when I was in their age, I knew nothing about all these.
Reasons are obvious. Things were different then. There was no such mechanism called ATM like we have right now. But today the entire banking scenario seems to have undergone a clear evolution. Banking industries and our relationship with banks, everything has changed for better. Because back then I didn’t knew how to make use of the benefits that come only with a Savings account. At this point of time I do. Both as a banker and as a customer i do understand that a savings account not just gives you a passbook, but empowers in so many ways.
Here are some points to think about.
Savings For A Sense of Security
When we open a savings account we actually create a foundation for a financial planning. We plan and save. We save and plan. This is how it goes. We give ourselves a safety net against emergencies. Small savings accumulated in a savings account always create a sense of security in us. Also these are very easy to access that help you get through a financial mess. When I say savings, I don’t mean an act of parsimony. But I encourage reduction in expenses on unnecessary stuff.
ATM cum Debit Card For Cash-less Convenience
This is apparently the most important and the most effective innovation in banking sector so far. Where banks are strict to their 10 to 4 business norms, ATM gives almost all of the provisions to a customer 24*7. Emergencies never come with prior notice, so when we need cash at a moment when banks are more likely closed, ATM card can serve all your financial requirements, provided you have adequate saving in your account.
Saving account these days come with ATM cum debit cards that can be used across world for cash withdrawals, point of sale shopping, online tax payments and many more.
Locker Facility For Protecting Your Valuables
A saving account not only safeguards your money but also safely handles your ornaments, important documents etc through Locker facility. You can easily get a locker against a certain amount of fixed deposit at your bank after you successfully open a savings account. On the basis of the average credit maintained in your account banks also discount the locker rent.
In-built Insurance And Health Card For Covering Health Risks
Savings accounts have become multipurpose. Banks are offering over the counter insurance covering accidents, health and life along with a savings account. You no more need to go insurance office and pay the premium. In Savings cum insurance accounts premium amounts are automatically debited after a certain period mostly on annual basis.
In recent years there has been another addition to this. That is called a Health Card with which you can avail health related treatments in cash less way. Banks are collaborating with leading hospitals to help its customers, at the time of medical emergencies without cash.
Freedom and Empowerment
A savings account will give you freedom through a number of instruments. A passbook that gives exact details of your transaction, an ATM card empowering you financially all the time, a Cheque book, Internet banking facility and SMS alert system are only some of the important ones.
Savings Account And Promotional Offers
Banks in order to expand their customer base, are adding many attractive features to their saving account schemes. Offers like discounts at food courts, shopping malls and e-shopping sites are highly encouraging people to open accounts and avail such facilities.
Also before you go to the bank for a loan or a fixed deposit, you will be prompted to open a savings account first. Hence a savings account has to be there to get started with.
At last I would say a savings account gives us a power to explore. I just can’t think of going out without my ATM cards. I shop online, pay taxes, transfer money and it all starts with a saving account. With this many features and benefits associated with this, there isn’t actually a single reason why you should not open a Savings bank account.