What is a Savings Account? How Does it Work?

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Summary A savings account is a banking account that helps individuals store money securely while earning interest on their balances. It provides easy access to funds for everyday banking needs such as deposits, withdrawals, transfers and bill payments. Savings accounts offer a combination of safety, liquidity, and steady wealth creation, making them suitable for both…

What is E-Mandate? What are its Benefits & Registration Process?

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Summary An e-mandate is a digital authorisation that allows banks or service providers to automatically debit recurring payments from a customer’s bank account. It simplifies the management of regular financial commitments such as utility bills, loan EMIs, insurance premiums, SIP investments, subscriptions and membership fees. It supports timely payments and help customers avoid missed due…

What is Tax Saving Fixed Deposit? How Does a 5-Year Tax Saving FD Work?

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Summary A Tax Saving Fixed Deposit is a special type of fixed deposit that offers tax benefits while helping investors earn guaranteed returns. Tax-saving FDs come with a mandatory lock-in period of five years, during which premature withdrawals are generally not permitted. Investments made in eligible tax-saving FDs can qualify for deductions under applicable provisions…

What is Auto Renewal in Fixed Deposit?

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Summary Auto-renewal in a Fixed Deposit (FD) is a facility that automatically renews your FD for a fresh tenure once it matures, helping you continue earning interest without any action from your end. Auto-renewal ensures uninterrupted growth of your savings, while manual renewal gives you greater control over tenure, amount and interest rate decisions. Before…

Does Having a Savings Account Improve Your Credit Score?

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Summary A savings account does not directly affect your credit score or CIBIL score. Maintaining a savings account can encourage better financial discipline and budgeting. Savings can support timely debt repayment, which is an important factor in credit score calculations. A strong credit score can improve your chances of accessing loans and other financial products…