The humble saving bank account is no longer the humble savings bank account. It is not just an account where you park your money for daily expenses.
“A man who both spends and saves money is the happiest man, because he has both enjoyments”. - Samuel Johnson
The savings bank account teaches you the value of savings. It offers you features which are an incentive to save. Your savings bank account offers you a lot of facilities, besides just parking your money and earning 4-6% interest a year.There are number of new features on an SB account.
If you maintain an average quarterly balance of INR 50,000-INR 1,00,000 in your savings bank account, your bank will give you a 10-25% discount for the locker fees on the gold or other valuables you deposit in your locker.
Some banks offer a free accident insurance policy if you have a savings bank account with them.Your savings bank account is no longer a zero balance account with an ATM card.
You have the flexi fixed deposit where your fixed deposit is linked to your savings bank account .Your money moves easily between the fixed deposit and the savings bank account.
If there is too much money in your savings bank account, you can set a trigger, where money from your savings bank account automatically moves to your fixed deposit and earns a high rate of interest.
If you have a savings bank account with a sizeable amount, say over INR 50,000-INR 1,00,000 maintained quarterly, you may get a 3-5% discount on the gold coins you purchase from your bank.
You have a lot of money lying in your saving bank account. You might be in for a pleasant surprise.You might just get a discount at your favorite eatery, and on that awesome Doughnut they sell there.
You can open a demat account which is linked to your saving bank account. You have to pay an annual maintenance fee for this demat account.Your bank might waive off your annual maintenance fees for your demat account if you have a savings bank account with them.
Your 10 year old child can soon own and operate his own savings bank account. All the pocket money you give him may just land in his savings bank account.
You will have to submit your child’s proof of date of birth and the Know your customer (KYC) details of you or your spouse, have to be filled with the bank. Your child might have his own cheque book, debit card and even an internet banking facility.
Your child might not be able to keep money beyond a certain limit in his savings bank account. The child’s account is linked to the parents account as the child does not have his own income and the money comes from the parents account.
The aim of this type of a savings bank account is to inculcate the habit of saving in children at a young age. The bank also benefits by you opening a kid’s savings bank account, as the child learns to save at an early age and banks can catch children when they are young, and establish a relationship with them.
A great saying comes to mind. Try to save something while your salary is small; it’s impossible to save after you begin to earn more. Saving is a habit you need to inculcate when you are young. This is a path to riches.So avail the new features of an SB account and move on the path to riches.
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