Along with savings accounts, other investment accounts like fixed deposits are a crucial source of funds for every financial institution. These institutions then use the saved money to provide loans to everyone else.
Almost every traditional and digital bank offers different types of savings accounts. All you need to do is to start depositing money into the bank account. Then these financial institutions will start paying you interest rates on the savings you make, either yearly or quarterly. These rates vary from bank to bank.
Usually, all banks offer a nominal interest rate on the money deposited in a savings account. Most banks will give you interest between 3 to 7% depending on the repo rate and reverse repo rates set by the Reserve Bank of India. The interest you earn on your money in a savings account helps you grow your money over the years. When exploring the market for a savings bank account, check the interest rate your bank offers and compare it with other available savings accounts. You can also open a savings account with Freo Save and get 7% interest on your money.
There are various benefits of opening a savings bank account in India. Some key features of savings accounts are that it keeps your money safe, allow you to transfer funds online in a short time, there is no age restriction, you can open an account jointly with a loved one, and the charges are nominal. But, whenever you take the first step to open a savings account in a bank, make sure you ask the right questions to make the most of your banking partner!