How To Select The Right Savings Account?

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There different types of saving account in the market, each catering to different needs of the individuals. So, how do you select an account that is perfect for you when they all seem almost similar?

It might be puzzling for you to decide on an account that is suitable for you. Here are some of the factors that you should keep in mind before picking the best saving account for you –

Taking into consideration the number of savings accounts that are seemingly packed with so many qualities, you might find it perplexing to find one that is ideal for you and suitable to your requirements. While your requirements and the saving account features may be a mismatch, you should reflect on some of the following points:

  • Rate of interests
  • Minimum account balance criteria
  • Service fees
  • Online access service
  • Debit card service and features
  • ATM and branch locations

Rate of interest:

The interest rate which the banks offer is one of the primary considerations you should have for your saving account. When the RBI relaxed the interest rate schedule in 2011, banks could set interest rates according to their preference. Banks provide savings accounts with varied interest rates, and it can fluctuate. This is because interest rates are conditional.

So, even if interest rates are attractive, you should first check if you can meet the minimum conditions of balance and other terms and conditions attached to it.

Minimum account balance criteria:

It is imperative that you make sure, before opening the savings account, that the account to be opened is a zero-balance saving account or that there is a minimum balance to be maintained. Generally, if the money deposited in the account is below the minimum requirement, the bank levies fine. If you are unsure of meeting the minimum balance requirement, you may be able to opt for a saving account with zero balance.

Service fees:

Read the agreement thoroughly before you open the account and see if there are any charges related to the account. You can choose to ignore fees for services that you will not use frequently.  Find out if there is a bank charge for making transfers to international banks. Does the bank have a limit on the number of free ATM withdrawals every month? Does the bank put a limit on the number of free online banking transactions?

The most common fee that banks levy is an administrative one when your account balance goes below a certain amount. If you are sure you would be unable to manage the minimum balance, it makes sense to go to a bank that won’t charge you.

Online access service:

Do make sure if the bank proposes excellent online banking facility. Currently, one barely visits the branch except for a clerical requirement. Through the mobile banking app, you should be able to access basic functions such as checking your account balance, opening accounts such as fixed deposits or PPF. You would ideally be able to perform basic functions online without having to go to the nearest branch.

Debit card service and features:

Banks offer a variety of freebies when you start a saving account with a joining kit that includes a free check book, grocery coupons, dining or movie tickets when you shop with your debit card, and so on.

ATM and branch locations:

Choosing a bank that has plenty of ATMs and branches spread around your residence city is better. To withdraw cash or take care of bank transactions, you do not have to drive to the nearest branch or ATM.

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