Can Opening a Savings Account Be Useful for Investment Purposes?

A savings bank account is one of the best havens to keep your funds safe and earn interest over time. However, besides earning interest through a savings account, using it as a periodic investment instrument is another effective way to grow your savings account funds. Some of the risk-free and preferred investment routes are recurring deposits and fixed deposits. 

A fixed deposit (FD) is prudent for you if you hold a lump sum fund and want to instantly invest. In this kind of investment, you can earn interest constituent on the overall amount deposited initially and may redeem the interest and principal at the term end. The current fixed deposit interest rate range anywhere between 3.50 per cent and 7.25 per cent per annum, making it a viable investment opportunity. A recurring deposit is a preferred option if you want to continue investing a fixed amount every month to earn interest constituent on your monthly deposit. Let us explore how to use a savings account for investment purposes. 

Automatic deposit

If you open a savings account, you can simply convert your surplus funds into a high-earning FD through the money maximizer route. This is an option available in a savings account where any amount over a specific limit is converted automatically into a fixed deposit. It is an ideal way to benefit from a higher FD interest rate while enjoying the benefits of a savings account. 

∙       This is a hassle-free automated FD booking based on a predetermined limit, which ensures you do not have to personally visit the bank to book an FD. 

∙       If you face any fund shortage, you can easily redeem your FD to mitigate your fund requirements. 

∙       In case your deposits fall, the bank may automatically renew your principal as well as interest constituent for the same deposit tenure as the original deposit. 

Digital account opening

Technological development today has made it possible for you to open a savings bank account digitally through the online platform. This is an online process that takes only a few minutes to save you from the trouble of visiting the bank physically.  What is more, you can open the account instantly through the video KYC process. Among various financial institutions, IDFC FIRST Bank is known to offer extensive online banking services along with a hassle-free and streamlined account opening process. You simply need your Aadhaar and PAN details to initiate the process. 

In just these 4 simple steps, you can open a new bank account through the online route – 

1. Input your bank details according to your Aadhaar card
2. Evaluate your details through an OTP (one-time password)
3. Complete other account-linked info
4. Click on the online bank account opening option

So, owing to the availability of a digital account, you can now open your account instantly from the comfort and convenience of your home and make the most out of the safe and smooth banking experience. With a savings bank account, you also can begin with your investment through the online route. For this, you just need to log into your mobile banking or net banking account to access a wide range of banking facilities without the need to physically approach the bank.