Top 4 Things to Consider Before Choosing Your Savings Account

Mihir Sen
Mihir Sen
Aug 31, 2018 · 2 min read

Having a savings account is important as it’s easy to open and operate. In fact, it’s the safest way to store money while earning interest on the fund deposited. But, if you do not research before opening a savings account, then you may end up earning a lower interest rate or paying more for some services. So, in order to increase your earning potential and to minimize your losses, here’re the few things you need to consider before choosing your savings account –

1.Interest Rate on Savings Account: The most important factor of a savings account is its interest rate. There are several banks that offer interest rate of up to 0.01%. You can never grow your money with an interest rate like this. Although, savings account isn’t the best place to keep your funds if you want to grow your money. Instead, it’s a place to keep money that you can access anytime during an emergency.

2. Transaction Charges or Services: Before opening a savings account, you must compare the transaction charges levied by banks on services like annual charges for debit cards, cheque return charges, outstation cheque collection, statement and cheque books, charging for issuing duplicate passbooks.

3. Minimum Balance Criteria: Before opening a savings account, you must find out the minimum balance required as penalty in case you fail to maintain the account. This can be as high as Rs 350. Although, there are banks that offer basic savings bank deposit account with no balance requirement, but such accounts provide very basic banking services and have restrictions on the number of withdrawals, transfers, deposits, and ATM transactions.

4. Easy Withdrawal: What if you require money urgently in the middle of the night? You will be able to get the money easily if your bank has a large number of ATMs in the neighborhood area. Thus, you need to look for the bank’s easy withdrawal policies before you decide to open a savings account with them.

Over and all, it’s good to analyze all the factors before opening a savings account. Besides, if you want to open a savings account online, then go for Axis Bank and earn a high interest rate of up to 7.10% on your savings account balance.

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