A savings account is an excellent place to store your emergency fund. You can tap for this fund during rainy days like car repairs, medical crisis, etc. and informed about all options. A savings account is one of the most basic and reliable financial products of all times. With the introduction of the Jan Dhan scheme by the government, there has been a substantial rise in the number of savings bank account.
Here we discuss some of the essential things to watch out for while planning a savings account that suits your requirements.
1) Interest rates:
Some savings account work at a fixed rate that pays a fixed set of return during the term. Accounts usually have a one-year term, but you can also lock up your savings for as long as five years. The highest rates tend to go to users who are prepared to tie up their cash for the longest period.
Individuals who want flexibility with your savings can prefer to have a variable rate account. With variable returns though, rates can change at any time, so you should always watch the amount of interest you are earning.
2) Transaction charges:
Before opening a savings account, make sure you research and compare the services charges levied by various banks. Comparisons should be made on bank services such as outstation cheque collection, cheque return charges, annual fees for debit cards and costs for issuing duplicate passbooks, statements and chequebooks. Select the type of savings account best suited to your needs.
3) Minimum balance criteria:
Some banks require you to deposit a minimum amount to open a savings account. Often, individuals need to maintain a minimum balance requirement while handling the savings account. However, with changes in government schemes, banks do offer Basic Savings Bank Account. These accounts need no minimum balance requirements, provide essential banking services and have restrictions on the number and amount of withdrawals, transfers, deposits, and ATM transactions.
4) Debit card offers:
Most banks provide free insurance cover on debit cards. Some debit cards offer discounts, zero surcharges at petrol pumps, EMI facility, airport lounge access, reward points and cashback offers. Therefore, when choosing a type of savings account, compare the deals available with the debit card offered.
With the power of the internet, you can easily apply online savings account with a bank to park your money. You can earn interest on the amount you deposit in your savings account and enjoy the flexibility. Prominent banks like ICICI, HDFC Bank, Axis Bank, Yes Bank, Kotak Mahindra Bank have developed 24*7 secure netbanking facility. You can efficiently conduct all bank operations without any hassles.
Here we discuss some of the essential things to watch out for while planning a savings account that suits your requirements.
1) Interest rates:
Some savings account work at a fixed rate that pays a fixed set of return during the term. Accounts usually have a one-year term, but you can also lock up your savings for as long as five years. The highest rates tend to go to users who are prepared to tie up their cash for the longest period.
Individuals who want flexibility with your savings can prefer to have a variable rate account. With variable returns though, rates can change at any time, so you should always watch the amount of interest you are earning.
2) Transaction charges:
Before opening a savings account, make sure you research and compare the services charges levied by various banks. Comparisons should be made on bank services such as outstation cheque collection, cheque return charges, annual fees for debit cards and costs for issuing duplicate passbooks, statements and chequebooks. Select the type of savings account best suited to your needs.
3) Minimum balance criteria:
Some banks require you to deposit a minimum amount to open a savings account. Often, individuals need to maintain a minimum balance requirement while handling the savings account. However, with changes in government schemes, banks do offer Basic Savings Bank Account. These accounts need no minimum balance requirements, provide essential banking services and have restrictions on the number and amount of withdrawals, transfers, deposits, and ATM transactions.
4) Debit card offers:
Most banks provide free insurance cover on debit cards. Some debit cards offer discounts, zero surcharges at petrol pumps, EMI facility, airport lounge access, reward points and cashback offers. Therefore, when choosing a type of savings account, compare the deals available with the debit card offered.
With the power of the internet, you can easily apply online savings account with a bank to park your money. You can earn interest on the amount you deposit in your savings account and enjoy the flexibility. Prominent banks like ICICI, HDFC Bank, Axis Bank, Yes Bank, Kotak Mahindra Bank have developed 24*7 secure netbanking facility. You can efficiently conduct all bank operations without any hassles.
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