There are many things that are very difficult to understand for a common person like us, but when it comes to money management then it is very easy to understand.
If you are a common man and you want to manage your money, then it is the best time to open a slush fund account. You can use this account as a savings account or you can use it for any other purpose which you want.
So, here I am going to give some basic information about what is a slush fund account.
What is a slush fund account?
A slush fund is an account which has no fixed limit, but there are certain rules that are set by the bank. It is a kind of savings account that allows you to save your money without any restrictions.
You can use the money in any way you want, but you must keep in mind that the money must be invested in a safe manner. You can use it for any purpose, but you cannot withdraw the money from the account.
The money in this account is not subject to tax and if you deposit more money then you will get a certain interest rate on the money deposited.
How to open a slush fund account?
In order to open a slush fund account, you need to visit a bank branch and fill up the necessary form. The bank will give you a temporary account number which you need to provide in the form.
Then you need to deposit a minimum of Rs. 50,000. If you want to invest more then you need to open a regular savings account.
Why should you open a slush fund account?
There are many reasons why you should open a slush fund account. You can use it for any purpose that you want, but you must remember that the money is not subject to tax. You can deposit money in this account without any restriction.
You can withdraw the money at any time without any restriction. There is no fixed limit on the amount that you can deposit in this account.
Conclusion:
I hope this post about “What is a Slush Fund” will help you to open a slush fund account. You can use this account for any purpose, but you must keep in mind that you cannot withdraw the money from the account.