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Who Needs a Savings Account?

In this age of consumerism, it has become extremely easy for people to buy anything that their heart desires. Hence, asking whether we need something is a good way to buy only the right products and save money as well.

However, a few things are good for everyone. A savings account is one of the essential financial product that is good for everyone.

Here, we will show how savings account is a must-have for people from all walks of life.

Kids:

There is a saying that to mould a person, the best time to do so is during the tender days.  Good financial decisions and managing money are something that is not taught in school. Hence, to inculcate savings habit from the tender ages, parents can open kids savings account for their minor children’s saving account.

The savings account will nudge kids to save money in their savings account. It is a common tradition in Indian households to give money to the kids of the family or relative’s kids during festive occasions such as Diwali etc.

Kids also receive pocket money from their parents to go about through the day.

Parents can teach their kids how to fund their account and withdraw money as well. These small acts will help kids be more responsible with their money.

College goers:

A savings account is extremely important for a college-goer studying in a different city. A student needs to pay their tuition fees as well as take care of the other expenses such as buying books, taking extra classes, food and other utility bills.  

A savings account will make it extremely easy for a student to carry out normal day to day transactions without the need for carrying cash. Parents can easily transfer money from their savings account to their children’s account. Children can use online banking and withdraw cash to carry out their banking transactions.

Employees:

An employee has to open a salary account with a particular bank. This bank may act as the primary bank for the employee. However, a second savings account can also help individuals in different ways.

A separate savings account can act as an emergency fund where individuals can park a portion of their salary for later. Also, the savings account can be used to set up systematic investment plans (SIPs) and for auto-debit of insurance premiums. 

Employees have to change their salary account when they start working with a different organisation. After the resignation, the salary account becomes a savings account where the average minimum balance becomes applicable. Hence, keeping a dedicated savings account for your investments will help you in the long run. You can easily set up auto-debit mandate or transfer money from your salary account to this savings account.

Homemakers:

Most homemakers believe that they don’t need a separate savings account and the joint account will be sufficient. However, even if you don’t have a source of income, you can open a savings account to save for your splurges and goals. It also comes in handy during emergencies and separation from spouse. 

A savings account will give financial support to women in testing times. While you may have joint savings account with your spouse, a separate savings account is extremely important for homemakers,

Freelancers:

Not everyone can be an employee. With the rise in remote working, many people are opting for freelancing. Freelancing allows individuals to work from any part of the country. Unlike their full-time counterparts, freelancers do not have the benefit of a salary account. To receive payments from their clients, freelancers need a savings account. The savings account will also help freelancers to open their recurring account, fixed deposits or invest in mutual funds and get higher returns.

It will also allow freelancers to transfer money to their parents and take care of the day to day transactions.

Conclusion: Savings account is important for everyone be it a kid, office goers, homemakers and freelancers as well. Savings account opens the door to the world of infinite financial possibilities from fixed deposits to mutual funds.  So, a savings account is right for everyone.

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