How To Select The Best Savings Account?

With so many Savings Accounts available in the market, deciding on the best one is complex. So, how do you know which Savings Account is the best fit for you? Before choosing the best Savings Account for you, here are key considerations. While your needs and the features of the Saving Account are not perfect, you should consider the following:

Interest rates

The most crucial decision to take is the Savings Account interest rates offered. In 2011, the Reserve Bank of India deregulated the interest rate system, allowing banks to decide their rates. Banks offer different rates, typically ranging from 4% to 7% yearly. This is the case because these rates are conditional.

Minimum balance criteria

See if the Saving Bank Account is a Zero-Balance one or if there is a minimum balance to maintain before you start one. The bank levies typically a fine if the money deposited in the account falls below the minimum amount.

A Zero-Balance Account is an alternative if you are unsure if you can meet the minimum balance requirement. Such accounts are accessible over the banking app.

Online access

Check the Digital Banking services to see if they are at par. Banking from home is the favoured alternative in today's environment. Hence, use your phone or computer to perform simple tasks such as checking your account balance, transferring funds, or starting accounts such as Fixed Deposits or Public Provident Fund.

Service charges

Before you open a Bank Account, read the terms carefully to decide whether there are any fees or charges associated. You can ignore expenses for features you do not use often. Is there a charge for transferring funds to a foreign account? Is there a limit to the number of free ATM withdrawals monthly? Is there a cap on the number of free online transactions you make through your bank?

Your bank charges you an administrative fee if your account balance falls below a certain threshold. Choose a bank that does not charge unless you are confident that you can keep up with the minimum amount.

Debit Card

When you open an account, you get a free chequebook, additional cards, and discounts on groceries, restaurants, and movie tickets upon using the Debit Card. Check to see if these freebies are appropriate. If you have a modest need for dining or grocery savings, it does not matter if you get these freebies or not.

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Created on Jan 13th 2022 02:53. Viewed 236 times.

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