Earlier, your ancestors would store money in the safety locker and kitchen containers to ensure its safekeeping. Most payments and transactions were made in cash and had no record. One would reach out to loved ones to borrow money in case of a financial emergency. These things were associated with several complications, and the bank provided a solution for them.

A Bank Account lets you do it all. You can deposit your money and ensure its safekeeping. It lets you make offline and online transactions to anyone at any time within minutes. You can also apply for Loans through an account and meet various financial requirements. This is just the tip of the iceberg. There is so much more you can do with a Bank Account.

There are different Bank Accounts accessible. A Savings Account is the most common type. The account lets you save, earn interest, and conduct daily banking. While a Savings Account comes in handy daily, you may consider the money you should deposit in it. The answer is very subjective. But refer to the following points:

Meeting the minimum balance requirements

You need to maintain a minimum balance in your Savings Account, failing which you are liable to pay a penalty. Ideally, deposit an amount in your Savings Account that lets you meet its minimum balance requirement. This prevents you from bearing unnecessary penalties. The Savings Account minimum balance requirement differs for each bank and Savings Account type. Contact your bank’s customer representative or check the Banking App.

Managing daily expenses

Typically, most individuals use their Savings Accounts to manage their daily expenses. If you are the same, make sure you have enough money in your account to meet them. Calculate your monthly expenses to decide the deposit amount for the Savings Account. Consider depositing more than you require, as you never know when an unexpected expense may arise.

Facilitate savings

Try saving at least some part of your income every month. This helps you build a significant corpus over time that you can rely on during medical emergencies and economic lows. Decide the amount you can save every month and deposit it in your Savings Account. You can deposit money in your Savings Account by making a cash/ cheque deposit or via online transfer.

Earn modest interest

You earn a competitive interest rate on your Savings Account deposits. Hence, consider depositing an amount in your Savings Account that would earn you modest interest. The bank calculates your interest income based on the average closing balance. A higher deposit amount attracts a more competitive interest rate. The bank credits the interest income to your Savings Account every quarter or as decided.

Visit the bank’s website to understand the Savings Account interest rates, calculation method, and terms and conditions.