Proper planning in investment products is necessary for financial planning at different phases of life. Starting and keeping a savings account is a crucial component of managing personal finances in India.
You can save money, get interest on deposits, and conveniently access funds for unexpected costs or future objectives by opening a 0 balance account. Different life stages require different approaches to efficiently using a mobile banking app or a savings account. Here’s how to maximize savings accounts at key phases of life.
Savings Strategies for Students
- Create an online bank account with the option to have no balance, which is very famous today
- Choose to open a savings account for students. Many banks provide free Internet banking and zero-balance special accounts.
- Keep your money in the account and avoid taking withdrawals. To prevent losing money, keep a separate bank account for expenses.
Savings on First Salary and New Job
- Switch to an ATM/debit card and a standard savings account.
- Set up auto-transfers to save 20–30% of each paycheck. Once your salary has been credited, take this step.
- Create a recurring deposit (RD) for long-term objectives such as paying for a wedding, buying a car, or saving for a college education.
- Request a salary account from where you work to get future discounts on credit cards, loans, locker space, and other products.
Just Married and Making Plans for The Future
- Choose to close, keep, or convert existing accounts to joint accounts based on ownership decisions. Make joint accounts accessible.
- Automated deposits into a shared savings account from a paid account for goal-based saving.
- To achieve long-term objectives and increase interest, create fixed and recurring deposits.
- Cash can be temporarily deposited in a 0 balance account prior to making investments. Today, you can use a money transfer app for investment purposes.
- Maintain a savings account emergency fund large enough to cover six to nine months’ household costs.
Growing Family and Putting Money Aside for Children
- Raise automatic monthly contributions to a joint savings account to support the family.
- Create an account for recurrent child expenses, such as tuition, extracurricular fees, health care charges, etc.
- Create savings accounts for daughters under the Sukanya Samriddhi Yojana.
- Unit-linked insurance plans (ULIPs) combine insurance with investments to fund significant future goals, such as children’s college tuition or marriage.
- Use lump payments, such as bonuses or family presents, to invest in stocks, mutual funds, PPFs, and other assets toward your children’s educational objectives. Before investing, place money in a savings account.
Middle Age and Retirement Funds
- Increase your contributions to your retirement fund through the Employees’ Provident Fund and Public Provident Fund.
- For retirement planning and exposure to equities, initiate systematic investment plans (SIPs) in mutual funds.
- Upon retirement, annuities, the Post Office Monthly Income Scheme, and the Senior Citizen Savings Scheme (SCSS) should be considered to secure a steady pension.
- Before reinvesting for higher yields, temporarily store lump sum receipts in savings accounts, such as bonuses and retirement benefits.
- Please verify that you have enough emergency savings for when you need them after retirement.
Final thoughts
Building long-term wealth and achieving significant financial goals can be greatly aided by using responsible savings strategies and having eyes on bank balance check. Savings accounts give your liquid savings a convenient place to stay while you fulfill your basic needs.