We all have different savings needs. And most of the conversation around savings is aimed towards long term savings and investments. However, what about short-term savings? Savings Account is one of the best saving plan for short term.
There can be various reasons why you would want to save for the short term. You may want to save up for your adventures or get your hands on the latest gadgets. The goals that needs to be fulfilled within a year or so requires a saving option that works for the short term.
Safe saving option: Safety should be the first priority when you are saving for the short-term. Savings Account is one of the safest saving option. Unlike other investment options, the value of your money in your savings account won’t fluctuate. The volatility of markets doesn’t impact savings account, making it as safe option for parking money in the short-term.
Earn interest: Savings Account provide interest rate to their account holders. As you start saving for short term goals, you will receive a fixed rate of interest on your savings. Different banks provide varying interest rates. And, higher savings in your account will generate higher interest income.
Read: How is interest rate on savings account calculated?
Avail zero balance features: There are several leading banks offering the ease of opening a zero balance online savings account. With such an account, you are not required to maintain any minimum balance in your saving account. Moreover, you are also offered a plethora of additional benefits like virtual debit cards, hassle-free online transactions, and so more.
No lock-in period: Savings Account don’t have any lock-in period. This means that individuals can keep or withdraw money as and when required. If you are not sure about the timeline of your short term goal, keeping money in your savings account will provide you with liquidity.
No need to save a fixed amount of money: If you open a new savings account for your short term goal, you can add or transfer money as many times as possible. There is also no fixed amount that you need to save every month.
Cash Withdrawal Facility: Savings account offers multiple ways to withdraw cash from your account. You can withdraw money from any ATM to withdraw money.
Different payment facilities: UPI, net banking, debit card are some of the payment options available to savings account holders. E.g., if you want to book tickets or purchase the gadget, you can place the order and pay with the help of various payment facilities.
International Debit Card: If your debit card allows international transactions, you can activate international transactions and make transactions.
Read: Your Debit Card Is Now Safer
Savings Account can the best saving plan for the short term. While picking any account for your savings, it is important to look at the different terms and interest rates in order to ensure the best for you. You must take a note of the savings account balance minimum values for avoiding fees along with the length of the terms.
Owing to the myriad of benefits offered by opening a savings account towards your short-term savings planning, you must wait no more and open a savings account now! When you are looking for short-term goals, it is important to choose a safe option that provides liquidity.
