In my last post, I have talked about the few pointers to start the personal finance journey. Let us now talk about the instruments to start with:
- Savings Account
- PPF Account
- Demat & Trading Account
Savings Account: Savings account can be called the basics instrument of managing personal finance. The account these days comes with a whole host of benefits – an ATM cum debit card, online banking facilities, mobile banking facilities, cheque book, etc and etc. This is an account where you can manage all your transactions.
For the basics,
Get a savings account with online banking facility.
That way you will be able to manage all your savings account transaction without visiting the Bank. Ensure that the sms notification is on with your bank.
PPF Account: Public Provident Fund account can be opened along with your savings account at a Bank. PPF offers the benefit of tax savings plus the savings are locked so this essentially becomes part of your long term savings and not the funds you use on every little emergency situation. SBI offers this facility so does a few other Banks. This makes it easier to fund the PPF account.
Demat and Trading Account: Get a demat and trading account. This will start a life-long habit of savings. There are innumerable ways to save and SIP, MF, Stocks, Bonds are an attractive world. There are risks but it is better to learn them and decide rather than not take a plunge out of fear.
Pro Tip: Get a savings account with online banking facility, PPF account, demat and trading account.
Until Next Time