While Equated Monthly Installments (EMIs) can be a great tool to reduce the burden of a massive lump sum payment, they may add to your financial burden every month. If this is the case, you may be relieved to know there is a way to manage EMIs easily using a zero-balance savings account. This is because standard savings accounts may require you to maintain a minimum balance at the end of each month. As a result, you need to juggle keeping a minimum balance and paying your EMIs on time. With a zero-balance savings account, you can be relieved of the former, enabling you to manage your EMIs better.
Open an Account Online with Zero Balance and Manage EMIs Better
When you have a zero-balance savings account, managing EMIs can become more manageable. Here are five ways in which this can pan out.
- Hassle-Free EMI Payments
One of the most significant benefits of a zero-balance savings account is automated EMI payments. Most banks today offer the facility to set up auto-payments for your EMIs every month. By turning on this feature, you can rest easy and watch your EMIs deducted from your account each month without having to do it manually. Since the account is zero-balance, you do not need to worry about the EMI payments draining your account below the minimum balance.
- Better Interest Earnings with Savings Account Interest Calculator
Another feature of a zero-balance savings account that can help you manage your EMIs better is an interest calculator. Since these accounts accrue interest as a percentage of the account balance, you can use an interest calculator to estimate your earnings from a savings account. If you have a sufficient account balance that grants you a sizeable interest payout, you may even utilise this towards your EMIs.
- No Minimum Balance for Better Cash Flow Management
More importantly, if you open an account online with zero balance, you no longer worry about maintaining a minimum balance at the end of each month. This means you have more cash flow, which can be utilised to make timely EMI payments. Such an account does not even levy any penalty when your account balance runs low. All of this can lead to better cash flow management, taking you a step closer to financial freedom.
- Easy Access and Tracking of EMI Payments
Besides a savings account interest calculator, these zero-balance accounts offer many other benefits. For example, most such accounts today can be accessed and managed entirely online. This saves you the trouble of queuing up at the bank every so often, leaving you more time to tend to other activities. Moreover, with 24/7 online access to account statements right from your mobile screen, you can track your EMI payments more efficiently.
- Enhanced Financial Discipline
By opting to open an online account with zero balance, you can have a separate bank account dedicated to EMI payments only. Your EMIs will no longer be deducted from your primary bank account. However, you must ensure that this account remains topped up with the necessary balance to pay off the EMIs every month. Hence, by doing this, you can develop better financial discipline.
Conclusion
With the facility to open an account online with zero balance, most banks nowadays can assist you in managing your EMIs better. By availing of this feature, you can make automated EMI payments hassle-free and even accumulate interest earned on the savings account, which may help you pay off EMIs more easily. You can even track these interest payouts using a savings account interest calculator.
