To benefit from the valuable facilities, most people open multiple Savings Accounts across various banks. However, they only use one or two accounts on a regular basis while the rest remain forgotten for months and years.
But keeping your Savings Account unused for long is not a good idea. Let’s take a look at some of the reasons why-
According to the RBI guidelines, an account is classified as ‘dormant’ if there are no customer-induced transactions for 24 months. Note that system-generated transactions such as interest credit or debit of service charges are not valid transactions for keeping the account active.
While the funds in an inactive Savings Account remain secure, you cannot access it without reactivating your account. You’ll have to submit an application with your KYC documents for reactivation, which can be a hassle during an emergency.
Most unused accounts generally have a low balance which is often below the minimum balance threshold of the Savings Account. As per the terms and conditions of the bank, a penalty is levied when the account balance falls below the required minimum balance.
So, the balance in your unused Savings Account will deplete over time as the bank will continue to levy a penalty for non-maintenance of the minimum balance.
Depositing funds in a Savings Account is an excellent way to generate risk-free income. However, there are other investment options, such as Fixed Deposits (FDs) that are secure but deliver higher returns.
If you’ve deposited a lump sum amount in your Savings Account and left it unused for a long time to generate interest income, it will help if you switch to an FD for higher returns.
Today, Savings Account offer a wide range of benefits. For instance, AU Small Finance Bank offers Monthly Interest Payouts at high interest rate on its AU Savings Account.
Know about Savings Account Interest Rates
Additionally, you can avail numerous advantages like Amazon vouchers of INR 300 as a joining benefit, anytime access to the account via AU 0101 App/NetBanking, dedicated Relationship Officer, AU Video Banking, lockers, Demat, Mutual Funds, Insurance, asset products & insurance.
A Savings Account helps you to accumulate funds for short-term and long-term goals. It is necessary to use it regularly in order to reap maximum benefits.
If you’re looking to open a Savings Account, AU Small Finance Bank offers a wide range of accounts catering to different needs of customers. These include AU Savings Account, AU Salary Account, Digital Savings Account, AU Women Account, AU ABHI Account, AU Student Account, AU Senior Citizen Account, AU Kids Account, AU NRI Account, AU Institution Account, and BSBDA Savings Account.
*Terms and Conditions apply. Rates are subject to change at the sole discretion of AU Small Finance Bank. For more details, click here.