Features of savings accounts you didn’t know existed!

When it comes to savings accounts, most of us only focus on the interest rates and convenience of banking. However, savings accounts in India offer several features that are often overlooked but can be extremely beneficial. Here are eight features of savings accounts you may not know existed in India:

1. Sweep-in facility

This feature automatically converts funds above a certain predetermined limit in your savings account to a fixed deposit, earning a higher interest rate. The fixed deposit is linked to the savings account. When the balance in the savings account falls below a certain limit, funds are automatically transferred from the fixed deposit back into the savings account. This helps you earn higher interest on your savings while still having access to your funds when needed.

2. Debit card offers

Savings accounts often come with debit cards that offer discounts and cashback on various purchases. These offers range from discounts on movie tickets and dining to cashback on online purchases. Make sure to check with your bank to see what kind of offers and discounts are available to you.

3. Overdraft facility

An overdraft facility allows you to withdraw more money than what is available in your savings account, up to a certain limit. This can be a lifesaver in emergency situations when you need funds immediately but don’t have enough in your savings account.

4. Mobile banking

Mobile banking is becoming increasingly popular in India. Many banks offer mobile apps that allow you to manage your savings account from your smartphone. You can check your balance, pay bills, transfer funds, and even invest in mutual funds or stocks through the app. 

5. Automatic bill payments

Many banks offer automatic bill payment services that allow you to set up recurring payments for electricity, water, gas, and telephone bills. This is a convenient way to ensure that your bills are paid on time without having to remember to make the payments manually.

6. Zero-balance savings account

A zero-balance savings account is a type of savings account that does not require you to maintain a minimum balance. This is especially useful for those who have fluctuating incomes or are unable to maintain a savings account minimum balance consistently in their account.

7. Locker facility

Many banks offer locker facilities to savings account holders, where you can securely store important documents and valuables. This can be useful if you don’t have a secure place to store your valuables at home.

8. Savings account for children

Several banks offer children’s bank accounts specifically designed for children. These accounts usually come with lower minimum balance requirements and comparatively higher interest rates. They can be a great way to teach children about the importance of saving and managing money.

To wrap up

These are some of the features of savings accounts that many people may not be aware of. By taking advantage of these features, you can manage your finances better and earn higher returns on your idle funds.