Why to Deposit Cash in Savings Account then keeping at home?

Do you still prefer to keep your cash at home? Check out this post to know the risks and how a Savings Account can be a far better alternative.

In the past, the banking system in India was not as developed or accessible like it is today. Thus, it was common for people to keep a significant amount of money at home. But that has changed now. Banks have significantly expanded their physical and digital presence to make everyday banking highly convenient and secure.

If you’re still into the habit of stacking up cash at home, here are some of the reasons why a Savings Account is a better alternative-

1. Earn Monthly Interest

The money you deposit in a Savings Account generates interest income bases on the respective savings account interest rate. Thus, the high-interest Savings Account from AU Small Finance Bank is a smart way to generate additional returns and grow your savings. 

2. Enjoy Tax Benefits

Under Section 80TTA of the IT Act, you can claim a tax deduction of up to INR 10,000 on the total interest you generate from Savings Accounts in a financial year. Interest income of up to INR 10,000 does not attract any tax.

Read More: - Is Savings Account interest taxable?

3. Be More Financially Disciplined

The interest you earn from a Savings Bank Account encourages you to save more and deposit more of your savings in the account. In a way, this inculcates a habit of saving and helps strengthen your finances.

4. Fulfil Liquidity Needs

With a Savings Account, you’re free to use the money just as you like. You can withdraw the funds as and when required, fulfil short-term goals, pay utility bills, shop, and conveniently manage all your day-to-day expenses.

5. Secure Your Earnings

Money in a Regular Savings Account is always safer than at home. Apart from the physical safety of funds, it helps you generate returns without the risks associated with instruments like equities. Moreover, DICGC insures funds of up to INR 5 lakh in bank deposits.

6. Better Expense Tracking

With a high-interest Savings Account, you can bid goodbye to the traditional practice of manual account keeping. From offline passbooks to NetBaking and Mobile Banking, there are many hassle-free modes to track your expenses with the account.

7. Easy Access to Your Savings

When you open Savings Account online or offline, you're provided with a Debit Card. With this card, you can withdraw money at ATMs and even make online and offline payments. Moreover, you can also use various digital channels, like NetBanking, Mobile Banking, and UPI, to access your savings.

Read More: Benefits of Savings Account

Keeping cash at home is risky. Here are some of the biggest perils of keeping money at home-

• Theft

A significant amount of cash at home always carries a risk of theft. It also puts undue stress on all the occupants.

• No Interest

Money kept at home does not earn any interest.

• Deterioration

While currency notes are more durable and stronger than regular paper, they can still get torn, rot, or mould.

• No Way to Track Your Expenses

Keeping cash at home and using it for everyday expenses makes expense-tracking more challenging.

• Temptation to Spend

The temptation to spend is often higher when you have cash in your hand compared to withdrawing money from a Savings Account.

As can be seen, there are several advantages of depositing your money in a Savings Account with high interest rate. Moreover, with AU Small Finance Bank offering a wide range of Savings Accounts, you can easily select one that best matches your financial needs.

Apply for an instant Savings Account today to start experiencing these valuable benefits.

Read More: How to open AU Small Finance Bank Savings Account in a few steps.