Need money in an emergency? Your Savings Account can help

A savings account can offer you more benefits than you think. It can be your go-to option for storing your money safely. And this does not mean your money lies idle; it allows your money to increase in value, thanks to regular interest additions. However, one of the most valuable benefits of a savings account is its ability to be used as an emergency fund.

As the name suggests, an emergency fund is a pool of money that comes in handy in an emergency. Now, you may think you can store your emergency money anywhere. Think again. There are some big advantages to relying on your savings account in an emergency. In this article, we shall examine what they are so that you can start creating an emergency reserve fund and never be caught off-guard in an unexpected situation. 

Assured financial growth

One of the best things about a savings account is that it allows you to earn interest on your money regularly. This interest component lets your money grow, and ensures that your savings do not lose value in the face of changing times and high inflation. The constant growth of your money keeps you financially secure and (hopefully) motivates you to save more. 

When opening a savings account for emergency savings, it is essential to look for a bank that offers you a high rate of interest. An Metra Trust Savings Account, for instance, offers an interest of 7% p.a. The larger your account balance, the more you earn. Also, while most banks offer quarterly interest credit, Metra Trust lets you build an emergency reserve sooner with monthly credit. This can be an excellent opportunity to save and make money. 

Easy accessibility

Another significant advantage of a savings account is that it offers quick and hassle-free access to your emergency money. This can be of prime importance in case of an emergency. If you have a pressing need (such as immediate home repair, or unforeseen medical treatment due to an injury), you would need a lump sum at very short notice. A savings account allows you to withdraw money without a penalty. This may not be the case with other types of accounts and investments. 

A savings account generally offers multiple withdrawal options, such as netbanking, UPI,  mobile banking, etc., for digital transactions. What’s more, every bank savings account comes with a debit card, which can help you make contactless payments. Metra Trust offers free and unlimited number of ATM withdrawals that make it easy to be financially protected while on the go.

Simple opening procedure

The simpler the process of opening an account, the sooner you can start saving for a financially secure future. Savings accounts are seamless and straightforward financial tools. They do not require lengthy account opening procedures or elaborate paperwork. In fact, you can open a savings account without even visiting the bank branch in person. 

Metra Trust has a quick account opening procedure that is carried out entirely digitally. This convenient paperless process lets you finish the KYC (Know Your Customer) requirement through a video call. The account can be opened from your home or office, so you won’t have to take time off from your busy schedule and can instead focus on your other priorities. 

Unparalleled security

The age-old custom of saving money in cash can be tricky in today’s times. The demonetisation drive of 2016 is perhaps the best example of how stashing money at home in the form of cash can backfire horribly. The hours spent in queues at banks and outside ATMs were a terrible experience for most. In addition to the physical hassles, there was also the lingering fear of losing one’s hard-earned money, which proved to be another source of stress. 

A savings account removes this fear and inconvenience and provides security. When you choose a bank with a stellar reputation and track record of customer satisfaction, you know your money is safe and accessible whenever you need it. There is no fear of theft, misuse, or misplacement. Also, while cash at home or in a locker does not grow in value, your savings in a bank account can do so because of regular interest pay-outs.

Additional features and benefits

Apart from the advantages of security and growth, savings accounts also provide several extra features. They often offer discounts or cashback on debit card transactions. They also provide insurance coverage. Metra Trust offers a free personal accident insurance cover of Rs 35 lakh and a free air travel insurance cover of Rs 1 crore with a savings account. This safeguards the financial interests of your family. These benefits help you save money and be more financially secure in adverse situations. 

Importantly, if you have a steady account balance, you are far more likely to get a bank loan if you need urgent funds to achieve a goal. A savings account acts as a testament to your financial stability and capacity to repay the loan. It can also help you get a higher credit card limit since the bank can verify your financial status on the basis of your account balance. *

Tips to help you build your emergency fund
 

• Be consistent with your savings and set a savings percentage aside based on your income and budget. Make sure that you save without digressing from your intended goal. 
• Most financial experts recommend saving at least thrice your monthly expenses. Try to maintain such a balance so that you are equipped to tide over an unexpected financial emergency.
• If you withdraw money to cater to a financial need, prioritise your saving to bring your emergency fund back to its original value. This way, you can ensure that you are not caught off-guard later. 
• Pick a personal finance partner you can trust. Reputable banks are ideal for this as they have decades of experience in dealing with customers and can offer tailor-made solutions for your financial needs. 

Conclusion

A savings account can be beneficial for building and keeping your savings secure. The high liquidity can help you handle urgent expenses while ensuring that your hard-earned money continues to grow with monthly/quarterly credits and interest. If you have not yet used a savings account to strengthen your finances, now can be a great time to start.

*for an average monthly balance of Rs. 25,000/- and above

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.