After current accounts and credit cards, savings accounts are the most popular financial tools that we know of. A savings account is usually the standard introduction to the world of banking. Usually considered a vanilla product that all banks offer, it is often not given much thought. However, a savings account is a good place to store your cash and earn some interest while you save. They inculcate a practice of conserving money and curb your habit of spending frivolously by allotting a withdrawal limit on your transactions. There are numerous other benefits of savings account.
If you are planning to open a savings account, do not rush into any bank and put in an application. The market is flooded with options but you must choose the one that suits your financial parameters. Here we bring to you some pointers you should keep in mind:
INTEREST RATES:
This is an important factor while availing not just a loan but also while opening any deposit account. Unlike loans, a savings account with a higher interest rate would mean higher savings. While 4 percent has been the norm for a while, some banks offer a higher interest rates. Prefer that over others.
AVERAGE BALANCE REQUIREMENT:
Individuals need to maintain an average monthly or quarterly balance as mentioned by the bank. Average balance also depends on the type of saving account you hold. Look for a bank that has a low or zero minimum balance requirement. The minimum balance required is ₹1000
SERVICES & FEES:
These differ depending on the type of bank you opt for. A private sector bank offer a lot of valuable services and tools that make you banking experience quick and easy. Their charges, however, are often high. Public sector banks, on the other hand, charge comparatively less but not much can be said about their services
LOCATION:
Choose a bank that is nearer to where you stay. Charges on a home branch are significantly lower than an outstation branch. If you are planning to shift to a new city, you can get your accounts transferred to the new branch easily.
ATM WITHDRAWAL COSTS:
With new rules in place, most banks have removed their free ATM use services with saving account. Instead, ATM withdrawals more than the stipulated number of times are charged. The fees is even higher if you use another bank’s ATM machine for transactions. However, there are a few banks in the market that have no such limits on withdrawals, like Yes Bank.
