5 Tips to Choose the Savings Account Right for You

Financial decisions must not be made hastily. All savings accounts might seem lucrative from a distance. It would help you in the long run if you invested some time to research the banks and all they offer while opening a savings account.

1. Interest Rates: It is a no-brainer that a savings account with higher interest rates will give more returns. Interest rates for savings account used to be a meagre 3.5-4 % per year. After the RBI deregulation of the rates, many banks offer competitive interest rates that can add to your savings. Women investors and senior citizens can avail preferential interest rates. Make sure also to check the other services provided by the bank before going for a savings account.
   
   
2. Minimum Balance Requirement: Most banks expect you to maintain a minimum balance in the account. The amount can vary from bank to bank, depending on the type of account. On failure to meet this requirement, you may have to incur a penalty. Choose a savings account with a very low or Zero minimum balance requirement. Banks now offer Basic Savings Bank Deposit Account (BSBDA) according to the guidelines issued by the RBI. This account doesn't require you to maintain a minimum balance.
   
   
3. Charges and Fees: Pay attention to the services provided by the bank and how much they charge for it. Banks can charge you for cash transactions in a branch after a specified limit. Some of the other services banks can charge you for include:
   
   

1. Issue of duplicate passbook
2. Issue of extra cheque book
3. ATM card replacement
4. Debit card PIN regeneration
5. ATM transactions after a stipulated number of times.
6. Go for a bank with minimum transaction charges and service fees.

4. Product Range: One size fits all approach will not work for everyone financially. To meet your individual needs, select a bank with a variety of options with different features. Some savings accounts can fetch you high-interest rates on balances exceeding a certain amount. Other accounts may be ideal for you due to the debit card facilities they offer. The different type of products providing specialised services for people include

1. Students Savings Accounts
2. NRI Savings Accounts
3. Women Savings Accounts
4. Senior Citizen Savings Accounts
5. Kids Savings Accounts

5. Key Features: Millennials, middle-aged and elderly look for convenience when it comes to banking. Go for a bank that offers ease of management with phone banking and net banking. Here are some of the other features that can add value to a competitive Savings account interest rate
   
   
1. Extended working hours of the bank
2. Higher limits on Cash deposits
3. Periodic interest payout
4. Auto-upgrade to higher tiers of benefits and privileges
5. Availability of physical and virtual debit cards
6. Locker facilities
7. Sweep-in facility linked to Fixed Deposits
   
   

Savings accounts can be an excellent means to put away surplus money and still have liquidity. By carefully choosing the right account, you can get more value for your savings. A savings account with desired features also helps you deposit and withdraw money at will.

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Created on Jul 8th 2019 04:45. Viewed 436 times.

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