What is saving?
Saving is a portion of income kept aside for the future use than spending it immediately. It is also defined as the amount left in the total income after paying off all the monthly expenditures. Savings can be used to increase income by investing in real estates, banking, retirement etc.
The savings can be used in many ways and all this ways has its own consequences. So before investing the savings check out the correct way to invest. The best way of save money is by depositing the money in the saving account.
The banks have attractive offers for saving accounting:
- Discount on lockers: Banks offer 15-30% discount on locker fee to the customers who maintain the minimum balance in their accounts.
- Family account benefit: Banks provides the special offer to the family member account and combines their deposits so that they can get more corpuses.
- Insurance: Most of the banks offer life insurance and other offers on the saving accounts. Customers have to maintain the minimum balance and have to pay the premiums regularly.
- Protection for debit card: Banks provide purchase protection clause to the debit card against instances of misuse or theft.
- Education insurance for children: By linking the children account with saving account in the same banks. The bank will make the child eligible for education insurance cover.
- Higher interest rate: Banks offer the higher rate of interest of 6-7% on the saving account.
- Discount on gold: 2%-5% of the rebate is available on purchasing the gold coins from banks. Special offer for the customers with the large account balance.
- Cash withdrawal facility: with the ATM service facility the customer can withdraw cash from anywhere in the country, at any time.
- International debit cards: The customer can convert the debit card into an international debit card and can use it for overseas transactions.
Money market account:
The money marketing account is an interest-bearing account that pays a higher annual interest rate than a saving account. The money market account is the low-risk way to increase the savings. It is a short-term investment but the customer gets higher interest rates. The withdrawal from this account is limited and there are more liquid than bonds.
The components included in saving calculator:
- Starting amount: The amount that the customer has started saving.
- Annual contribution: The amount that will be contributed annually.
- Monthly contribution: The monthly savings.
- Term: The time period of the savings annually/ monthly.
- Increase: The percentage of savings increased annually/monthly.
The contribution made at the beginning/end of the compounding year:
- Interest rate: The interest rate paid on the savings.
- Compound: The term period for calculating the interest.
- Tax rate: The tax rate on the saved amount.
- Inflation rate: The inflation rate of the saved amount.
This calculator includes different factors like tax, inflation, and contribution to calculate the end balance of the savings account. The bank provides the annual percentage yield on the particular saving account is compounded annually we can calculate the interest compound using this calculator.