If you want to lead a comfortable life without gettingtroubled by low finances, you should learn to take charge and manage your finances efficiently. Banking products and services can help you here. Firstly, you should open Bank Account online, as it is the first step in your financial journey. There are various types of Bank Accounts to open.
A Savings Account ensures the safety of your money while allowing you to retain easy access to it. The account also earns you a modest interest rate and facilitates day-to-day banking. You can open Savings Account with any leading bank, offline or online.
Once you open the account, you often wonder what amount you should hold. Referring to the following pointers can help you figure out a suitable answer to the question:
Match the minimum balance requirement
Savings Account follows a minimum balance requirement. The bank charges a penalty for the non-maintenance of the minimum balance. The penalty amount increases for consecutive non-maintenance instances.
Banks introduced the minimum balance requirement to curb individuals’ temptation to withdraw and save. You should try to hold a balance that matches the minimum requirement without incurring penalties.
Enough to meet your expenses
A Savings Account enables you to make seamless transactions, utility bill payments, credit payments, and Insurance premiums in a matter of few clicks. You also have the option to automate all kinds of recurring payments, ensuring you never miss out on a due date.
Calculate the amount needed to cover your payments and ensure you have the necessary amount in your Bank Account to make the payments at the right time. Download the Banking app to learn about the interest rate offering and calculation method. It is user-friendly and secure for people of all ages.
Save some amount
You should save at least some percentage of your income. No matter how small the percentage is, save it. Your savings help you build a significant corpus over time. You can rely on the corpus to meet financial goals and sail through emergencies.
The rule of 50-30-20 is very popular. Typically, you assign 50% of your income to your needs, 30% to your wants, and 20% to savings. You can always adjust the percentages according to your financial standing and preferences.
Suitable to earn you a decent interest
This financial product is an interest-bearing Bank Account. You earn a competitive interest rate on your deposits. They vary from one bank to another. You should consider opening an account with a bank offering the highest interest rate.
Besides scouting for the highest Savings Account interest rates, you should also try to maintain a higher account balance to attend to financial emergencies and fulfil your objectives.
