If you’re wondering about saving money, you can start by opening a savings account. Unlike a current bank account, a
savings account offers interest on your deposits.But this isn’t the 90’s.
You shouldn’t settle for interest as low as 3 to 5 per cent anymore. Today, a savings account should help you grow
your money.
Unfortunately, many of us don’t know how to start or find the right savings account.
Don’t worry.We will help you find the right deal for you and we promise it won’t feel like a chore.
What is the best way to start a savings account?
Before you open a savings account, do your research. When you are ready, think about what you want to do with your money and how much you can save. For example, if you want to buy a car, go for a high yield account or an account that gives you the highest interest on your deposits.Make sure that you look for the below key features and compare them before deciding.Here’s the list:
- First and foremost, check the interest rate.
- Ask if there are any hidden fees.
- Some financial institutions might have a minimum balance requirement. Go for the one that has no minimum balance requirement.
How much money should you keep in your savings account?
Consider your reason for saving money.
Ask yourself, how much money are you willing to put aside?Saving is kind of similar to putting aside money and
forgetting that it exists. If you can pay yourself a certain amount and decide to live by it, you can comfortably
divide the remaining amount into savings and spend the remaining on your necessities.This is where budgeting
works.
Develop a habit and see the magic happen.We know it won’t happen overnight but now is better than never.
Can you save as little as Rs. 10,000?
Yes, any amount saved is a good investment. Money saved is money earned! You can then choose to invest the amount in multiple savings schemes, fixed deposits, gold, etc. Ensure that you keep increasing your savings over time and invest appropriately to make it grow.
Follow the 50-30-20 rule
We know that you have seen this everywhere but still, this unique trick gets ignored.If budgeting is hard, then this
rule can save you save more.
All you have to do is record your expenses and club them into needs, wants, and savings.The essential spending can be categorised as needs, and its split should be 50% of your income. Spending based on your habits and interests should be categorised as wants, which should be 30% of your income. The remaining 20% or more should be kept aside as savings. Tweak your expenses to fit the 50-30-20 split of your income.
Learn more about the 50-30-20 rule of budgeting.
How to open a savings account
A savings account is the best option to manage your everyday expenses or grow your money. Banks offer many types of savings accounts, and you can apply for a savings account without visiting the branch. We have mentioned the documents you need need to open a savings account below.
Keep your documents handy
Before opening a savings account, you must submit a few documents to verify your identity. Some banks may ask you to submit minimum documents, and some may ask you for other information. In most cases, you need proof of identity and address.
For proof of identity, you can submit anyone from the list below:
- Aadhaar card
- Passport
- Voter ID card
- PAN Card
- Govt or Defence ID card
- Driving Licence
For current address proof, you can submit any one of the following:
- Credit card statement
- Salary slip
- IT returns
- Electricity and telephone bill
- Bank account statement
Often, people use savings for a rainy day.
But if you are saving for a specific goal, choose the right partner who will help you grow your savings.It’s
time you get paid for saving money.
What do you think?
