Most of us have a savings account. When opening an account, applicants need to consider its features and its different perks from others.
A savings account allows you to avail various banking services and earns interest on your savings. Als, some special Government schemes make direct credits to your savings accounts.
As the trend for digital payments picks momentum, it is essential that your account supports digital payments and offers more features at lower costs.
How To Choose The Best Savings Account?
Most banks offer savings accounts, so you have many options to choose from for opening one. Let us look at a few aspects that can help you choose the best savings account.
The money you keep in your savings account earns interest. While the primary function of a savings account is not to earn returns, higher interest rates are always preferable as it would mean more returns for you.
Various banks offer different rates on savings accounts ranging from 2.5% to 7% per annum. You can consider this aspect when opening an account.
RBL bank, for example, offers 6.5% per annum on digital savings accounts, making it a great choice.
Monthly Average Balance
Some banks require you to maintain a minimum monthly balance in your savings account, while some do not. The minimum requirement balance varies per the bank policies. Failure to maintain the minimum average balance can attract a penalty.
Higher interest rates, free cash withdrawals, and insurance coverage are linked to a higher savings account balance.
Consider your requirements and then choose the type of savings account features you need when looking for the best bank for a savings account. If you do not require additional services, you can choose a savings account where you have to maintain a lower account balance.
Service And Transaction Charges
Another factor that requires attention is the miscellaneous charges you might have to pay for various services or transactions in your account. Find out if there is any fee for overseas transfers.
Also, look for how many free ATM and branch transactions are allowed. Is there a limit to online transactions in a month? What are the charges per transaction if you exceed the limit?
Check the amount you would be charged if you do not maintain the average monthly balance. You can ignore the charges for the services you do not require. However, if you make frequent ATM transactions, it is better to look for a bank that does not have a limit or one that has a higher limit for the number of transactions allowed.
You can carry out almost all banking and investment activities online these days. The best bank for savings accounts should offer you the ease of online operation.
You should be able to perform basic functions like balance inquiries, order chequebooks, or transfer funds at your convenience from your laptop or mobile phone.
Your savings account should also offer you facilities like opening a PPF account, a fixed deposit, or a recurring deposit online. After all, the COVID pandemic has highlighted the need to access your accounts from the safety of your homes.
We all love additional benefits from any product or service. Many banks offer add-on benefits like complimentary tickets, access to airport lounges, cashback on utility bill payments, low-cost EMIs for online shopping, and so on.
The banks have a special arrangement with various platforms that allows them to offer discounts to customers who use them frequently. These add-ons are lucrative and can help you save money from time to time.
However, before you get lured by the deals, assess their utility per your usage and then decide. Banks also offer special rewards and privileges on debit cards.
To Wrap Up
Savings accounts offer convenience for your day to to day financial transactions and also help you earn interest on your funds.
Owing to these reasons, it is essential you understand your requirements and match them to the best savings account for you, whether it is a digital savings account or a zero balance account.
Follow this guide and choose the bank that suits your need best.