Eight mistakes to avoid while opening a savings account

Opening a savings account is the foundational step to secure your savings. While doing all the hard work for earning money, it is also important to use the savings account to grow the money instead of making it sit idle. Avoid these common mistakes while opening a savings account:

1. Not comparing interest rates and fees charged by different banks: Savings Account interest rate, fees and other aspects of Savings Account may vary from one bank to another. So, before choosing your savings account, always compare different banks for interest rates and pick the best deal.

2. Not reading the terms and conditions: Before opening a savings account, make sure to assess all fees, the minimum balance and every policy stated in the account T&Cs. Sometimes it helps to avoid any surprises further down the line.

3. User-friendly platform for online/ mobile banking: Almost all of the banks in today’s use have strong online and mobile app interfaces for checking account balance, money transfers and other banking services etc. Check customer reviews to know which app is easier to navigate and has better usage-based platform.

4. Ignoring Deposit Insurance: Ensure that your bank is covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) in India. This provides a guarantee for the safety of deposits up to ₹5 Lakh per depositor, giving you peace of mind regarding the security of your savings.

5. Creating a new account just to collect the signup bonus. Sign-up bonuses are great, but picking an account is mainly based on ongoing convenience, costs, and branch and ATM options.  Manage your finances with one account or two; multiple inactive accounts with low funds can also impact your credit score negatively.

6. Not specifying the nominee for account. Designating account nominee makes it possible for your savings to transfer to the next generation smoothly and the account does not end up in the probate.

7. Not taking into account the possibility of account minima or maxima. Some savings accounts come with a certain minimum/ average balance that has to be maintained in order to avoid penalty charges. Some also limit the amount of deposit or transfer per month. Know these rules.

8. Lack of compliance because you cannot track all the changes. Some components of the services may include: Periodically, banks can alter the terms of the savings account, the amount of interest offered, and other fees. To keep themselves in check, individuals that actually in the workplace, should log on and check for any updates in the notices of any changes.

These mistakes should be avoided as you look for the ideal savings home for your hard-earned deposits. Those looking for a reliable choice for savings account can check with DCB Bank. They offer different types of saving accounts to meet individual needs. The bank is known for offering competitive interest rates and responsive customer support. DCB Bank provides efficient online banking solutions along with 450+ branches across India, making a reliable place for opening a savings account, to save and grow your money in the long run. Save smart, Save now with the right savings account.