Is it worth having a Savings account?

In this digitalised era, almost everyone has a savings account with the bank of their choice as with every passing day, making day to day transactions keeps getting even more convenient for its users. There are many reasons to have a savings account, especially in these times. Some of these reasons are-

1. It is a secure way of saving money. It is protected from theft or fires or any kind of disaster. It is easier to steal cash than steal from a secured a savings account.
2. It is extremely convenient to save money and make day to day transactions in seconds using a savings account. Users can withdraw money whenever they need it instead of carrying a lot of cash all the time. Users can also use other facilities offered to account holders like net banking, issuance of cheques and demand drafts. It is also very convenient to pay large sum of money using such means as it is very difficult and inconvenient to carry and deliver a huge amount of cash. Example, purchasing a car or a house or any expensive item.
3. It also makes paying expenses like telephone, electricity, water bills very easy and convenient. It can be done in seconds.
4. It makes saving easier. It maintains a record of all your transactions so the user can analyse his/her expenditure and cut down on some of it and save more.
5. We can also say that it is like an investment, in a way as savings account offer a percentage of interest rate on the amount deposited with the bank. This also encourages users to save more so they can earn interest on a higher amount of money.
6. It is also mandatory for one to have a bank account in order to take loans from financial institutions and banks as they tend to favour existing customers with a good track record. Different people need different type of loans like student or house or car or personal loan and hence, need to open a bank account for the same.
7. Nowadays, almost every transaction is done electronically for which the most basic requirement is abank account. For example, employees in most of the sectors, receive their salaries in their bank accounts at the end of every month. Money is transferred to family or friends who don’t live nearby or live in different continents or country through online facilities offered to accountholders of a savings account. It is a common way of paying and receiving money these days.
8. It is also mandatory to have a bank account in order to be able to use mobile wallets like Paytm, Google pay or BHIM UPI etc as it is directly linked to a bank account.

Conclusion

To conclude, it is evident that, in this dynamic and fast paced era, having a savings bank account is more like a necessity than a choice. Nowadays, most of the transactions are carried out through means that requires having a savings bank account. Its advantages and perks outweigh all kinds of disadvantages or threats it may have associated to it. Therefore, yes, having a savings account is definitely worth it.