Savings accounts are the foundation of your banking experience. These accounts allow you to deposit your money with a bank and transact or withdraw your money using instruments like Debit Card, Net Banking, UPI and other associated forms of funds transfer and other key banking services.
Generally, salaried individuals open their first savings account along with commencing their first formal job, to receive salary from their employer into the bank account. In many cases, such accounts are facilitated by the employer itself in partnership with the preferred bank of the employer.
Self-employed people generally set up their savings accounts in the same bank where they maintain their business banking/current accounts.
It is not unusual for people to have multiple savings accounts, but have you ever considered the benefits of having multiple accounts?
Here are the 5 key benefits of having multiple accounts
Savings accounts are associated with multiple benefits like interest on deposits, choice of debit cards and associated offers, special offers by certain banks and charge structures of accounts across multiple banks. By opening multiple savings accounts, an individual can experience the best of multiple banks while having the freedom to choose the primary bank of his/her choice thereby maximising financial gains and optimizing the cost to hold a savings account
Fulfil financial goals
Sometimes, it is beneficial to create a separate account for managing your long-term investments and savings, by linking them to the account that is not used for your daily expenses. This allows an individual to review and exercise better control over the exact investments, contribution towards insurance and other associated wealth building and protection instruments
Choosing specific digital experiences
In an increasingly competitive environment, banks are continuously reinventing their products and offerings. For the new age, digital first population, it makes sense to open savings accounts with digitally superior, new age banks and neo-banks. These entities are exposing users to a whole new level of experience while preserving the essence of banking
Specific loan products or credit cards
In several cases, banks come up with lucrative propositions in the form of discounted / pre-approved loans and credit card offerings for their existing savings account holders. Now several banks and neo-banks can set up your banking account in a completely digital manner within minutes
De-risking your cash balance
Some customers feel the need to divide their savings balances across multiple bank accounts to avoid any unforeseen situation like a technology outage or a financial/operational risk with any specific bank of theirs.
So, there are several benefits if one were to choose their savings accounts wisely.