Cash assets, such as savings accounts and term deposits, are the most liquid of all the asset classes. That is, they can be most readily converted to cash – hence the name of the asset class. Cash is the safest form your money can take but it typically generates the lowest returns.
The record low interest rates at the moment may not be attractive, but it can be good to have some cash in a bank account because of the safety it provides and because you can access it right away when you need it. Bear in mind, though, that some providers of term deposits or savings accounts may charge a fee or reduce the interest they pay you if you decide to withdraw your money earlier than expected.
Advantages of Saving Account
Because savings accounts pay interest, it is more beneficial to keep your unneeded funds in a savings account than in a checking account so your money can grow. In addition, savings accounts are one of the most liquid investments outside of other demand accounts and cash. While savings accounts facilitate saving, they also make it very easy to access your funds. In contrast, it is typically more difficult to cash a bond, make a withdrawal from a retirement account, or sell stocks or other assets.
benefit of opening a savings account
The One of the important benefit of opening a savings account is that it helps you inculcate a habit to save and you can earn interest on this deposited amount. Features of savings account vary according to the type of account you choose.The few common features to help you understand the benefits of opening a savings bank deposit account:
- Network branches and ATMs of the respective bank are easily to accessible in customers
- Transfer funds easily using IMPS/NEFT/RTGS/UPI facilities to any bank account
- Internet Banking and Phone Banking facilities for a quick check of balance and bill payment
- Personalized cheques for enhanced security
- Personalized Account Number
- Several offers and discounts on Debit
- No limits on the amount deposited
- Facility to link loan EMIs or RD deductions through the savings bank account