What is a Saving Bank Account?

A saving  bank  account is basically a account where you deposit your money into this account and thus keep it safely. When you keep your money in this account, you will start earning interest on it. In other words, the  bank  pays you for keeping your money in the savings  bank  account. This earning is in the form of interest earned on the total amount kept with the  bank . The  bank  takes care of the deposited amount. If you could carry your cash with you, all the time or keep it in the house, you are likely to loose it in the form of robbery or your house could be destroyed along with the money during, calamities. But if the same calamities take place while your money is kept in the  bank , it will be the  banks  responsibility to pay you back at any cost. Thus you will not only cultivate the habit of saving money, by keeping the money in the saving  bank  account but, you are also assured that your money kept with the  bank  is safe and sound.

The  bank  provides interest on your savings and at the same time,  banks  also earn money for themselves by providing loan money to business people on consumers. So people deposit money in the  bank  and this same money is then given to other people who pay interest on the borrowed amount.  Banks  make money by charging interest amount which is more than the interest paid to the person who puts his money in the  bank . Everyone including businessman, will benefit by having a  bank  account for themselves as it provides various facilities such as providing check payments, keeping of records of various transactions involved between the employer and his clients. Thus checks are the best way to keep a track of business transactions, even at a personal level. You can save your time and money without having to travel physically to the person to whom you have to make a payment. All that you need to do is just draw a check in the name of the concerned person and the  bank  does the needful. These days you have online transactions which are very common. You can transfer money from your own account to other peoples account just by a click of a button. I am speaking about online  bank  to  bank  transfer.

These kind of accounts help you to keep your extra money with the  bank  for which you earn interest amount. So instead of keeping it at home which is prone to risk, you can always keep your cash in a saving  bank  account. By this way, you also cultivate a habit of saving. You must try to keep a part of your monthly earnings in a saving  bank  account. Having accumulated enough savings over a particular period of time, you can then use your savings to make specific purchase. You can also use your savings for a rainy day.

This has now become a part and parcel of our lives. As soon as the person starts earning money, he or she must have a account in order to keep his earnings in his account and thus safe guard his own money and also be able to earn interest money paid to you by the  bank . You must always keep a track of the amount you have in your  bank  account. You must maintain an average quarterly balance, otherwise the  bank  will charge you a penalty for not being able to maintain the minimum balance that is required by the concerned  bank .

Source by Amit Bhawani

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What is a Saving Bank Account?