A bank account serves as a safe deposit for your income. Opening a bank account is considered prudent as it ensures that your money is safe and secure. Depositing money in a bank account also keeps it from being spent completely and earns interest. Before opening a bank account, it is important to note that these accounts are not a monolith. One of these different variants of bank accounts is savings accounts.
What are savings accounts?
One of the prominent bank accounts, savings accounts create a safe avenue for your earnings and enable you to monitor your income and expenditures. Moreover, you also earn interest on the deposits in these accounts.
In several cases, a savings account is the first-ever experience of an individual with the banking and financial world. Thanks to the range of options available, and even the convenience of online banking, it is of the utmost importance for you to choose your new account wisely.
However, before you open a bank account online, you need to look up certain factors as mentioned below:
1. The savings account available options:
Before opening a savings account online, you must know your savings objective in advance. Banks offer a wide range of savings account options that have their own exclusive features. Basic savings accounts come with straightforward features in which you deposit money and earn interest. In case you want to enjoy additional services, you may need to pay some nominal charges.
2. The minimum balance required:
It is also important to check whether the savings account you are signing up for is a zero-balance account. In case it isn’t a zero-balance account, ensure to maintain a minimum balance in the account. If the account balance goes below the minimum requirement, you will be required to pay a fine. Make sure that the account you signed up for is a zero-balance account or at least requires a low minimum balance.
3. The interest rate offered:
Generally, banks in India offer interest rates of approximately 3.5% to 5% on savings accounts. However, some banks offer interest rates of up to 6-7%. If you are searching for a high savings account interest rate, you might consider signing up for an IDFC FIRST Bank savings account. You get interest rates of 6.25% per annum that are credited into your account on monthly basis.
4. Safe online banking:
While most net banking facilities are safe and secure, it is important to ensure that your preferred bank follows the necessary net-banking safety protocol. Banks usually have adequate measures to keep your personal information safe. However, you should ensure the credibility and track record of the bank.
5. The process of applying for a loan:
Some banks offer loans at a lower rate of interest if you hold a savings account with them. When opening a savings account, you can look for personal loan offers as you may need urgent funds during an emergency.
6. The credit and debit cards that come with the account:
Usually, banks provide various credit and debit cards when you open a bank account. These cards help access funds conveniently. So, before opening an account, make sure to choose an account that also provides you with the opportunity to select a card of your choice.
7. Bank’s location:
While most banking services have shifted online nowadays, there are still situations where you might need to visit the bank physically. So before, opening an account in the bank, you should also check its proximity to your home and the convenience of the services.
8. The online services provided:
Along with fund access, banks usually provide a range of services such as money transfers, account statements, bill payments, and more. When you apply for a savings account, ensure to check the spectrum of services offered through online banking.
9. Is there a charge on transactions carried through the savings account?
It is also important for you to check if the bank charges a fee on both offline and online transactions. Ideally, you should open your account with a bank that does not charge online transactions and offers unlimited withdrawals.
10. The rewards and exclusive deals offered:
Some banks also offer reward points whenever you carry out transactions with debit or credit cards, mobile banking apps, or internet banking. You can redeem these reward points in the form of exclusive offers and cash discounts.
By opening a savings account, you show your trust in the bank and expect everything to be hassle-free. Hence, it is imperative to choose the bank that offers you both good customer service and great deals. Taking the above points into account will help you choose a savings account that suits you.