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How Professionals can profit from having a savings account

Whenever a union budget is realised or the government changes hands, we all believe that the future of working professionals will look better. Particularly, when it comes to saving money, working professionals have their eyes glued-on on every aspect of the budget to see where they can save money. Apart from the changes in the taxation laws, the inflation rate remains unchanged with every budget and it inevitably indicates that individuals will not have any leverage to save. Yet, hope is not lost for those who look in the right direction, and that is towards a good savings scheme with a reputed bank. We discuss the variety of savings account for professionals that can indicate a silver lining for those working professionals, who believe that they have none.

Saving money smartly

No, it doesn’t require rocket science or Einstein’s formula to realise the ideal savings scheme for you and your family. Especially for working professionals who have been inclined to stick with their salary accounts as the only source of earning an interest rate, they can seek other avenues to gain a higher interest rate. Let’s take a look at the other factors that working professionals can look at towards saving more than they imagined in the presence of any union budget.

  • Determine the amount you want to save: It’s no use pouring money into only one account when you can divide it and allocate a certain amount to gain a more competitivesavings account interest rate. Ascertain the way you would like to save money and allocate your resources smartly towards a good savings scheme.
  • Browse for a competitive interest rate: It’s not quite difficult to merely view the rates offered by other banks. For instance, the six percent interest rate at Kotak bank can be a good alternative to your already interest-earning bank account.
  • Determine the minimum balance for an account: Whenever you browse through the benefits of a savings account, determine the minimum balance required before you show your keenness towards that scheme. Most attractive schemes begin at INR 10,000/- but depending upon the facilities and interest rate offered, some savings schemes begin at INR 50,000/-.
  • Establish the identity of the account: Working professionals may or may not choose to open an account in their own name as an additional one to their already existing salary account. In this case, it would be advisable to open a savings account that merely accumulates attractive interest rates, either in the name of a family member or a close friend. Depending upon the savings bank account owner, sometimes, the interest rate and facilities may also vary. For instance, opening a junior savings account for a young one offers unique privileges such as investing in recurring deposit, SIPs etc.

The choice to save is not as difficult as the ability to decide which scheme would be apt to meet your future financial goals. It’s always advisable to click on a suitable option once you have decided which scheme would be apt for you and your family. 

Author Bio: Anupama Sughosh is an independent finance blogger who loves writing about the rise and fall in the world of finance, banking, general industry trends and corporate sustainability. She holds a rich experience of working with corporates such as KPMG as well as institutions such as TISS, her articles share insights from the individual and the corporate perspective.

Categories: Finance

View Comments (3)

  • In nutshell, all tax-payers should make us of section 80-TTA of Rs.10000/- of interest on Savings Bank account tax free. It is found in large number of cases people earling 7 to 7.5 % interest on MOD (automatic FDs)accouts and paying 30% intcome tax on it! Good article useful for all.

  • Those professionals who have spouses and other family members with taxable incomes can open a family account in Yes Bank, which offers 7% interest on balances above Rs. 1 Lakh. Interesting part is that the balances of all family members can be clubbed under their 'Family' scheme (upto 5 members can be registered as a family). The balances in all 5 accounts will be added together and, if the total is in excess of Rs. 1 Lakh, are eligible for 7% interest in each account. Thus, the balances can be distributed in such a way that each account can earn tax-free interest upto Rs.10,000 in a financial year = total Rs.50,000/- tax free income, an amount not to be scoffed at !!

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