Financial wellness is essential for every individual. It refers to having the ability to live a healthy and stable financial life. It involves managing your income, expenses, budget, savings, debt, and investments smartly and responsibly to meet your daily needs and also effectively prepare for the future. A savings account plays an important role in supporting your financial wellness.
Let’s explore the connection between savings accounts and financial wellness. Learn how bank accounts serve as useful tools for building and maintaining financial health.
Safety and security
A major benefit that highlights the importance of abank account is the security they offer through Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance. Under this, every depositor is insured for a sum of ₹5 lakh, which includes both the principal and the interest earned.
While bank failures are rare, this insurance coverage offers peace of mind to depositors and supports overall financial stability and wellness.
Earn passive income through interest earnings
Savings account interest rates are nominal, but still better than storing cash at home. The interest can offset the impact of inflation to some extent. Choosing the IndusInd Bank Indus Multiplier Max Savings Account further enhances this benefit, as it offers the flexibility of a bank account along with FD-like rates.
Through the auto-sweep feature, any surplus balance above ₹20,000 in your bank account is automatically converted to fixed deposits. Thus, you earn higher and better interest earnings. If your savings account falls short for a transaction, a portion of your linked fixed deposit is broken intelligently to fill the gap without any penalty.
Don’t wait to secure your financial future! Open an IndusInd Bank Indus Multiplier Max Savings Account today. Enjoy a 100% online savings account opening process.
Open doors to other useful financial services
Although thepurpose of savings accounts is to offer a safe place for your deposits, it also creates a relationship with the bank. This relationship can open doors to useful banking services and products like:
● Fixed deposits
● Insurance
● Mutual funds, stocks, and other investments
● Loans
By leveraging these services, you can boost your financial well-being, improve your creditworthiness, grow wealth, and gain financial knowledge.
Smart budget management
Today, most savings accounts come with useful digital banking features and dedicated mobile banking apps that help you manage finances better. Through instant access to transaction histories, real-time balance updates, and spending alerts, you can monitor your financial activities. Such accessibility and control help you stick to your money savings plan and avoid overspending.
Many banks also offer tools like spending categorisation and budget recommendations based on your transaction history. This helps you see where your income goes each month and adjust your savings plan and strategies as needed.
An accessible emergency fund
In difficult situations, like medical emergencies or sudden unemployment, a bank account can be a financial lifeline. Having funds that are accessible 24/7 in such times is a critical component of financial wellness. It ensures that you are not forced into restrictive credit options that often come with high interest rates and stressful repayment schedules.
Access to other value-added services
Here are other value-added services offered by savings accounts that highlight their role in promoting financial wellness:
Rewards
Earn rewards on purchases in the form of cashback, discounts, deals, and gift vouchers.
Online/mobile banking
Manage your finances from anywhere to enjoy better budgeting and account monitoring.
Insurance benefits
Some accounts offer health, travel, and accident insurance as well.
Auto-pay feature
Simplify bill payments and recurring expenses with automatic deductions to ensure timely payments and convenience.
Discounts on lockers
Access discounts on safe deposit lockers and get secure storage for valuables at a reduced cost.
Free family accounts
Manage family finances efficiently by opening free accounts for family members.
Importance of savings accounts | Key takeaways
A savings account is the cornerstone of financial wellness. It offers DICGC-backed insurance to protect your deposits, provides opportunities for growth through interest, promotes regular saving habits, and helps in systematic financial planning. So, open a bank account today and leverage these benefits to simplify your financial life.
Make sure the savings account you choose comes with competitive interest rates, attractive rewards, useful digital banking features, minimal fees, zero balance account and good customer service. After all, the right bank account can ensure that your savings work effectively towards your financial wellness and future security.
