About to open Micro savings Account? Here is what to know

An increasing number of account holders in financial intermediaries like banks also brings several new types of savings for their customers. Among them, the Micro savings account is one of those new products for people. Such a special account is created by thinking about the people of every class.

It has been observed that almost 30% of people from the working class are unable to reach the door of the bank due to the high maintenance of balance in a bank account. As a result, a particular group of people are exempted from enjoying smooth financial service. So, by thinking about those people, many banks have started this Micro savings account which does not require a huge amount of balance maintenance.

There is no doubt that such a bank account helps many people to save money and offer better finance management. Before we start discussing the benefits, let us know something more about it.

What is Micro savings account all about?

It is a specific bank account where a person can deposit a small amount within frequent intervals or whenever he feels like saving money. The micro-savings account is just like a traditional account where a person can save as much as possible. But this particular one is quite different from others as financial intermediaries add some more features to it.

There is no requirement of maintaining a particular amount within the account. As there is no minimum amount required so, banks will not levy any non-maintenance charges on the account. Moreover, the account holder can easily withdraw any amount at any time.

However, when it comes to the matter of earning interest on saved funds, you need to remember that some banks offer minimal interest on Micro savings. On the other hand, some banks do not offer such extra interest rates because of no surety of balance.

The micro-savings account process

With the digital banking system, most banks and even credit unions offer the facility of opening such bank accounts via mobile application. After installing the application of your chosen bank, you need to select the Micro savings account. Now, you need to fill-up the form by giving each and every detail.

You should not forget that you need to be the resident of that country to open such a bank account. However, after filling up the entire details, your account opening will be under process, and the intermediary will require some more working hours to open the account. If you have an existing debit card, then you can easily link it with that bank account.

Therefore, you can easily transfer the Micro savings account from that existing account every time. It saves money and offers unlimited liquidity; besides, it also assists you in increasing savings. Suppose you have bought some item that costs 21.65 Euro, and you want to pay the money through an online application, it will deduct 22 Euro.

•   Advantages of Micro savings account 

Without the improvement of every class, it is impossible to get completeness. On that note, this type of account helps in the financial improvement working class by offering them the way of better finance management. However, people can easily borrow provident doorstep loans from direct lenders to manage a financial crisis.

Do not worry about it as you have not paid extra to the seller. Rather, the payment system will help to save an extra amount post payment of 21.65 Euro. Such a little amount of savings will not bother you but at the same time help to increase your savings.

Some of the benefits of a Micro savings account are,

• Builds up daily savings  

This type of account does not require any stipulated balance, and because of which one can save as much as he wants. Besides, the account holder can deposit money whenever he wants. Therefore, when a person deposits money every day, just like keeping money in the piggy bank, it will ultimately build up the habit of savings.

• Ease of saving money 

Unlike other bank accounts, when you open a Micro savings account, the financial intermediary will not ask you to save a particular amount every month. Rather, you can save as much you can. Therefore, due to the ease of saving money, one can stay worried about maintaining balance.

• No extra charges 

The micro-savings account is especially for financially unprivileged people who cannot deposit money in a bank account. This is such an account that it does not levy any charges over the account. However, even if there is no balance within the account, the bank hardly charges any penalty. Besides, there is also no charges levied while withdrawing money from the account.

• Wonderful way to save money

Some people also use this account to save money for investment. Generally, there is a stipulated amount, i.e. up to which can’t save or something like that. As a result, you may easily save money as much as you want.

Being a separate account, you will hardly use it for making any payment. After saving money for 1 or 2 years, you can easily use the entire fund in any investment scheme.

Above all, such an account offers unlimited liquidity, which is the primary requirement of everyone. A person can easily save money as well as get ultimate liquidity. Therefore, an account holder needs not worry about how to manage the emergency requirement of the fund.

So, if you are about to open this account, you can apply for this account and enjoy the ease of savings without worry.

Also Read: Effective Financial Tips for First-time Business Owners