Saving money should be an essential part of your financial planning, as it provides support not just for you but also your family by covering expenses such as rent, utilities, medical bills, and other necessities. While there are various ways to save money, one of the methods is to open a savings account.
A savings account is a widely preferred low-return option to park your funds, as it offers security and liquidity. However, storing your savings is not the only way in which a savings account helps. There are various ways to make your savings grow with the help of a savings account.
Here are the five ways in which you can maximise your savings account benefits:
- Choose the right savings account
Choosing the right savings account is essential to maximise the benefits of your savings account. When choosing a savings account, consider the interest rate and fees. Look for an account with a good interest rate to get the most out of your savings account. Also, watch out for fees, as some banks may charge maintenance fees, transaction fees, or other hidden fees. Choose an account with low or no fees to avoid unnecessary costs.
- Use online banking features
Online banking features help you maximise the benefits of your savings account. Many banks offer online banking services, such as mobile apps, online account management, and account alerts. These tools can help you keep track of your savings, monitor your account, and stay on top of fees and charges. You can also set up alerts to notify you when your balance reaches a certain level, or when a large transaction is made. This way, you can stay informed and in control of your savings.
- Avoid non-maintenance of minimum balance
Unless your savings account is a zero-balance account, you are required to maintain a certain amount of money as minimum balance in your account. If the balance in your account falls under this limit, the bank will levy non-maintenance charges in the form of interest. Hence, make sure you know what the minimum balance is and maintain it at all times.
- Choose a savings account with cashback or rewards
Some banks offer savings accounts with debit cards that come with cashback or reward programmes. These programmess allow you to earn cashback or reward points on your spending. The cashback or rewards points can be redeemed for various benefits, such as discounts on online shopping, travel, or dining. If you use your debit card linked to your savings account for your daily expenses, a cashback or reward program can help you save money in the long run.
- Use a virtual savings account
A virtual savings account is an online savings account that can be used to save money for specific goals. These accounts are ideal for those who want to save for a specific purpose, such as a vacation or a down payment for a house. You can set up a virtual savings account and name it after your goal, and then start saving money towards that goal. Some virtual savings accounts come with features that allow you to track your progress and set reminders to save.
To sum up
Choosing the right type of savings account and utilising all its benefits can aid in maximising your long-term savings and alleviate some of the pressure of managing your finances. Remember, every little bit helps save money, so it’s worth finding the best savings account for your needs.