With savings being a priority for the average Indian, having a personal savings bank account is not a matter of ‘if’ but ‘when.’ However, not all savings accounts are created equal. Over the decades, banks have transformed their standard savings account to meet custom saving requirements.
Therefore, to ensure that you have the right savings account aligned with your financial needs, you need to spend time shopping around and doing your homework.
Opening a savings account after hours of pondering and research will not only make it easy and convenient for you to manage your finances but will also help you earn high returns.
Don’t know where to start? Given below are a few tips to help you choose the right savings account.
Consider the Interest Rates
Since the Reserve Bank of India (RBI) has allowed banks to set the savings account interest rate at their own discretion, the banking market currently features a variety of interest rates.
This should be one of your first considerations while choosing an account, as it will directly determine your returns. So, compare banks and their offerings and choose one that features the highest interest rates on their savings account.
Check the Minimum Balance Criteria
The minimum balance on a savings account dictates how much spending freedom you have. Breaking this limit can lead to penalties or even suspension of the account. Therefore, it’s best to consider this factor while choosing your savings account.
Nowadays, many banks offer zero balance savings accounts, which stipulate no compulsion of maintaining a minimum balance. With these, you can spend on your favourite products without defying the limit or incurring penalties.
Read All the Terms and Conditions
Your personal savings account may come attached with certain fees such as account maintenance charges, ATM withdrawal charges over a specific limit, transfer charges in case of overseas money transfer, etc. Go through the fine print and see which services you’re likely to use and the charges for each. Wherever you can, try to save money. For instance – opening an online savings account will help you avoid account maintenance charges.
Check Debit Card Offers
Different banks offer different offers, freebies, and reward points on their debit cards, which can be utilised every time you make a purchase, either online or offline.
Check if these offers align with your spending patterns. For instance, if you dine out a lot, look for debit cards that offer cash backs or discounts on restaurant bills. Doing so will make spending on your favourite products a delight and maximise your savings.
Ensure Ease of Online Access
Given the current scenario, banking from home has become the preferred choice. To keep things contactless, make sure your bank offers good digital facilities that involve facilities like online checking of account balance, transfer of funds, and investment in instruments such as Fixed Deposit (FD) and Public Provident Fund (PPF).
On a Final Note,
Another thing you should consider is your bank’s branch and ATM density. Despite the wide availability of cashless payments, if a sudden need for cash withdrawal arises, you should be able to access an ATM or a nearby bank branch.
It’s possible for personal savings account to fit your needs like a glove. So, take your time, do your due diligence, and make an informed choice.