Almost every one of us has a savings account. It is safe and easily accessible. That said, there are numerous options available when it comes to saving accounts, from traditional to digital accounts. Most of them are the same with little differences. Many banks also allow individuals to open bank accounts online free of cost. It means you don’t need to deposit an initial amount to get started. Learn what you should consider while choosing a savings account and the type of saving accounts below.
Things to Consider Before Opening a Savings Account
Here are a few things to consider when figuring out which savings account you should get opened.
Interest rate is one of the foremost considerations when choosing a savings bank account. Banks are free to set saving account interest rate at their discretion. They set conditional interest rates on bank accounts. For instance, they may offer lower interest rates to accounts with lower balances than those with higher balances. Go for an account where you get the optimum rate for your savings.
Minimum Balance Requirement
Before you open a savings account, check if it requires the account holders to maintain a minimum balance at all times or if they calculate the average minimum balance requirement during a period. Some banks also have the facility of a zero-balance savings account that has no such need.
Service or Transaction Charges
You would want to park your funds in high-interest savings accounts, but studying the bank terms and conditions before opening an account is also important. Banks charge fees to your savings accounts. Ignoring these fees can make a difference when selecting your savings account. Open a savings account with a zero-balance requirement to avoid these charges and save money.
Online Account Access
Basic banking functions are now carried out through online bank platforms, such as net banking and mobile banking apps. Rather than visiting the bank branch for each small transaction detail, account holders can get the data online through mobile and net banking facilities. Go for accounts with banks where these facilities are easy to avail.
Debit Card Facilities
When you open a bank account you get a debit card (physical and virtual) and you can use the same to get discounts at various partner brands. You also get reward points which can be redeemed to get products or facilities.
Branch and ATM Density
Although net banking and mobile banking facilities help us avoid visiting the bank branch, it helps when a branch office is nearby. Bank branches and ATM networks are essential aspects you should consider when opening a savings account. A wide range of bank ATMs and branches help you perform any banking transaction smoothly, and help you avoid the hassle of traveling far to reach a branch or ATM.
Types of Savings Accounts Worth Considering
All caught up about choosing the best savings account? Great! How about exploring a few great savings account types suitable for various customers’ needs? Keep reading.
- Regular Savings Account: This is a standard savings account with normal interest rates. Account holders can keep their money safe in this account and withdraw whenever they want
- Instant Savings Account: This account is like a regular savings account with the same rates and facilities. The only difference is that customers can open it online. Those who want to open a bank account online for free may find this a suitable option
- Privilege Account: This account comes with several exclusive customer benefits, including discounted locker facilities, banking assistance, unlimited withdrawals, and other priority services
- Savings Account for Women: Several banks offer unique savings accounts for financially independent women. These accounts provide women with a wide range of benefits and features, including discounted locker facilities, cashback on debit card usage, insurance benefits, etc.
- Family Savings Account: A family account allows all family members to perform their banking transactions through a single platform. These have better wealth management features and low minimum balance requirements
While evaluating factors to consider before choosing a savings account, enquire about the shortlisted account options and decide which one best suits your needs. Learn more about the different types of savings accounts available in India and open bank accounts online for free using the selected bank’s online platform.
In conclusion, choosing the best savings account is based on what you need out of it. Each of our financial needs and goals is different. So as mentioned above, it is important to consider factors such as interest rates, fees, accessibility, and account balance requirements when making a decision about opening a bank account. Online savings accounts may get you higher interest rates and a host of benefits. It’s important to compare different options and consider the long-term benefits of each bank account before making a decision. Ultimately, selecting the right savings account can help you reach your financial goals and build a secure future.