What is a Savings Account?

A savings account is necessary to enjoy the full suite of banking services.
 

To understand the concept of a savings account, imagine you and your friend have ₹500 each. While your friend kept it with them, you deposited it in a bank that offers an interest rate of 10% annually. Towards the end of the year, your friend managed to not spend any money and save ₹500, whereas you grew it to ₹550 because you decided to deposit it in the bank. A savings account is means to keep your money secure with the bank and grow it by earning interest over the period. Compared to other bank accounts, a savings account offers better liquidity for you to access funds when needed. Read on to know the meaning of savings accounts and why it is necessary for you in the current banking ecosystem. 

Savings account: Meaning and definition
 

A savings account is a financial tool that allows you to deposit money and earn interest on the amount. It is primarily intended for saving money over time through interest accrual. It provides a safe and secure place to store funds while also offering the opportunity to earn a modest amount of interest on the balance. Savings accounts typically offer greater liquidity, allowing you to withdraw funds easily when needed to meet expenses. These accounts often come with minimal or no fees, making them ideal for building an emergency fund, saving for short- and long-term goals.

Additionally, a savings account ensures safety and access to your money whenever you need. You can withdraw your funds, either digitally or in person, at any point in time.

Having a savings account is a liquid investment, so you have the ease of using your funds any time for transactions. A savings account also earns decent returns; Metra Trust’s savings account, for instance, earns up to 7.25% interest per annum. In addition to high savings account interest rate, you get monthly interest credits to grow your savings rapidly along with[g1]  zero charges on all commonly used Savings Account services such as ATM withdrawals, online money transfers, debit card issuance etc., completely free of cost. Opening a savings account with Metra Trust also enables you to enjoy high withdrawal and shopping limits.

The bank also allows you to use an online saving account to ensure flexibility. You can operate your online savings account over the internet, using your PC, laptop, or even your smartphone, and earn high interest rates.

Why do you need a savings account?
 

A savings account is like a virtual locker that safeguards your money and pays a certain amount of interest. As opposed to a fixed deposit (FD), you can use the money in your savings account whenever you need. A savings account also has other uses.

With your savings bank account, you make transactions, receive payments, pay your credit bills, and make investments. You can also pay for utilities such as electricity bills, ration, mobile phone recharges, and shopping. A savings account safeguards your money from theft and misplacement and reduces the stress that comes with carrying too much cash.

Who can open a savings account?
 

Any Indian can open a savings account individually. Foreign nationals can also open a savings account, although they must do it jointly with another Indian using an application form and some other KYC documents. A Hindu Undivided Family (HUF) is also eligible to open a Savings Account.

While banks require Indian citizenship as a requirement for opening a savings bank account, certain provisions exist for foreign nationals who stay in the country for a long term. These individuals must simply provide the requisite KYC documents along with the application form.

A savings account can be your first step towards being financially responsible. Your money would be safe with the bank, so you never have to worry about thefts or misplacing it. All you need to do is carry a debit card instead of having to carry a lot of cash. You can also grow your money as the bank gives you interest.

With Metra Trust, you can open a savings account online. All you need to do is go to the Metra Trust website, click on ‘Savings Account’ under ‘Savings & Deposits,’ and select open now. Once you fill in all the details, you will soon have your own savings account. High interest, unlimited ATM withdrawals, and minimal maintenance fees are the standout reasons for opening a savings account with Metra Trust.