Living expenses worth three to six months is the sum that financial experts suggest, as a must-have liquid fund for any unexpected financial crisis. The reason is that, regardless of how well you budget your living costs, no one can foresee what emergencies might arise in the future. Your emergency fund can act as your financial buffer. It helps you meet unplanned monetary requirements without building up a debt.
Also, storing the money in a savings account provides instant access to it in hours of need. If you have not opened an emergency savings account yet, here are a few reasons why you might want to consider applying for one soon.
Scenarios when you may find a sudden need for extra resources
Healthcare costs are escalating every day. If occurs, your health insurance may not cover the entire medical cost. emergency fund can help you tackle the expenses without taking recourse to costly loans.
Loss of income
Economic recession, slow business activity affects salaried as well as self-employed individuals. Moreover, ill-health or severe injuries can also force an individual to take time off from work. Such situations can lead to a loss of regular income. Your emergency corpus can see you through such difficult times.
Home or car repairs
Accidental damages can lead to unanticipated repairs. Your emergency fund helps pay the bills without leaving huge dents in your savings or amassing credit card dues.
Why should you have a dedicated emergency savings account?
While an emergency fund keeps you prepared for life’s uncertainties, it is crucial to park the corpus in a bank account separate from your regular savings instruments. Here’s why:
A savings account provides the fastest cash source through ATMs and online payment mode like IMPS/UPI facility.
High-yield investments can be hard to liquidate and attract an exit-load or penalty for pre-withdrawal.
Temporary shortfalls or temptations to buy luxury items can eat away at your fund if you do not preserve it in a separate account.
Therefore, to deal with financial predicaments, you should set aside some money in a dedicated savings account. You can consider the wide variety of YES BANK savings accounts that suit the individual needs of customers.
YES Digital Savings Account
Open a YES Digital Savings account through video call verification without visiting a branch. Just show your original documents while keeping the process quick and paperless. Also, you can get a virtual debit card with a personal accident cover.
Get rid of banking charges on unnecessary services. You can select only those products that you might need for emergency purposes. Options include:
pricing alternatives to minimal balance
packages like unlimited ATM usage, digital banking facilities
Old age brings health complications. Avail lucrative offers from leading healthcare brands like Thyrocare, SRL Diagnostics, and more with this savings account if you are over 60 years old.
Grace Savings Account
This account honours women’s contribution to life’s every sphere with exclusive lifestyle benefits and a personal protection cover to women account holders.
Xlrate Savings Account
You can enjoy a high-interest income with this savings account. It converts the surplus over a preset account balance into a fixed deposit, yet allows you to withdraw money whenever you want.
This account provides a tax-free interest income up to a predefined amount, helping you save on your taxes.
Along with such benefits, if you also want to enjoy attractive interest rates and unmatched services, you can open your emergency savings account with YES BANK.