Things to know before Opening a Savings Bank Accountby Nisha Scott Account manager
When you start thinking of managing your finances, the first thing that you need to do is open a savings account. It is the first step towards financial security, and mentioned in this post, are some points to consider when you open a new account.
A savings account is the first step in securing your future. Instead of leaving your cash out, you can create a savings account with a reputed bank and start saving while earning interest on your balance. While most savings accounts have certain common features, you should check out some other points to ensure that you will get the maximum return from your bank and your account.
1. ATM Withdrawals
While the primary purpose of a savings account is to save money, you should also be able to access your funds easily. Your ATM debit card enables you to withdraw money up to a specified limit per day from ATMs. There are two types of ATM withdrawals -
- Bank ATM withdrawals, and
- Non-bank ATM withdrawals
The savings account interest rate could vary slightly from bank to bank, but it
could also depend on the deposit and the type of bank account you have chosen.
Senior citizens are mostly entitled to a slightly better interest rate.
3. Different Types of Savings Accounts
Banking needs differ based on your sex, age,
financial goals, requirements etc. Banks offer different types of savings account to cater to these specific needs. Open the
right type of account based on what you’re looking for. Some of the popular
Citizen Savings Account
Each of these savings accounts come with some
unique advantages, such as a discount on annual locker rentals, preferential
branch banking, no minimum balance requirement, and more. For instance, if you
plan to invest in the share market, you can opt for a 3-in-1 savings account
that brings together a savings account, a Demat Account and a Trading account
in one package. Contact the bank official to understand various products and
choose the right one for you.
4. Fees and Charges
Every savings account comes with a set of fee
and charges. It is important to be aware of these charges before you open a
savings account. Note that an account with the lowest charges is not always the
best, just as one with the highest fee may not be suitable for you. Charges and
fee also come with added privileges and benefits on the account. Some of the
typical types of charges you should check are;
5. Ease of Opening and Operating the Account
Technology has made it easy today for people to
open and operate an account. Most banks allow you to open an online
and operate one from the comforts of your home through net banking or mobile
banking. Just fill the application form and submit your KYC documents to get
A new interest
savings account will help you to streamline your accounts and manage your
finances better. In addition, you will be able to avoid several pitfalls later
once you make the preliminary inquiries.
Created on Jul 23rd 2021 06:12. Viewed 269 times.