For many people, their Savings Account is usually their primary mode of transacting with their chosen financial institution. It lets them save extra cash and build an emergency fund for unforeseen expenses. It also allows them to conduct transactions, make investments, receive funds, and more. Hence, opening such an account is usually the first step in your financial journey.
However, before you open a Savings Accountwith any bank,there are some crucial factorsthat you should consider. These include the following:
Average minimum balance
The average minimum balance is the average of all the closing balances you have in your account in a particular month. This number varies across banks and may range from zero in some public sector banks to Rs. 10,000 inprivate sector banks. Hence, you should check the guidelines of your chosen bank to know the average minimum balance you need to maintain in your account each month.
An essential benefit of opening a Savings Account is that the money here earns interest at competitive Savings Account interest rates. This enables you to grow your money steadily in the long run. The interest rate usually varies from one bank to another. Hence, you should determineyour bank’s ratebefore opening your account.
Charges and associated costs
A Bank Account usually comes with charges like Debit Card fees, SMS charges, etc. Hence, you should review the various charges before opening an account.
Ease of account opening
Earlier, peoplehad to visit the bank, stand in queues, and fill out lots of paperwork to open their Bank Accounts. Today, you can easily open your account online anywhere and anytime. So, choose a bank that provides this facility and lets you open your Savings Account online conveniently, using their website or Banking app.
Look for banks and Savings Accounts that provide lucrative offers, gift vouchers, memberships, and more. This allows you to save more and enjoy a host of amazing benefits.
Besides letting your money earn Savings Account interest rates, your Bank Account enables you to apply for Loans from your bank. It also makes availing of Loanseasier since your bank can consider your financial history with them. Additionally, having an account sometimes qualifies you for pre-approved Loans if you have maintained a steady account balance and have a good credit history.
So, if you plan to apply for a Loan, ensure that you go through the credit facilities your chosen bank offers.
You should select a Bank Account that opens doors to other financial products like Mutual Funds, Fixed and Recurring Deposits, Loans, etc. It should also allow you to manage your account and carry out transactions online seamlessly using their Online Banking platforms.