savings account

Today, it is not tough to understand the Indian bank account opening process. You can easily access your savings account or any other type of account in your desired bank with many benefits. A savings account is best if you wish to save money or funds for future use.

Although savings accounts typically pay a modest savings account interest rate, their safety and trustability make them a great option for pulling up cash you want available for short-term needs. Apart from benefits, it would be best if you remembered some key factors while looking for an Indian bank account opening.

Key Factors to be Keep in Mind While Opening a Savings Account

Looking after some factors when opening a savings account is necessary for more benefits.

Interest Rates

The first major factor that comes to mind when opening a savings account is the interest rate banks offer customers. Savings accounts normally pay moderate interest rates compared to other investment avenues.

Although the RBI unrestrained the interest rates in 2011, most banks remain to offer low rates (around 4%) on savings accounts. Some private banks offer attractive 6-7% or higher rates to lure customers. Looking for the fine print before selecting the bank is always better.

Minimum Balance Criteria

Before opening a savings account, it is necessary to verify the minimum balance an account holder needs to maintain and the penalty related to it in case of non-maintenance. The penalty charge can be as high as Rs 450 per month.

Although banks offer no minimum balance requirements on some accounts, these accounts provide basic banking services and restrict the number and amount of transfers, deposits, withdrawals, and ATM transactions.

Transactions or Service Charges

Before looking for an Indian bank account opening, compare the transaction and service charges imposed by banks on services such as cheque return charges, outstation cheque collection, charges for issuing statements, duplicate passbook and cheque books, and annual charges for debit cards. Generally, public sector banks have lower transaction and service charges than private banks.

Quality of Service

With the introduction of online savings accounts, Netbanking, and mobile banking, most of the services offered by banks to their customers do not need them to visit banks physically.

However, you may still need to visit your registered bank branches for services like locker transactions, check deposition, and cash transactions. Therefore, carefully check the quality and agility of services offered by the bank before looking for an Indian bank account opening with them. In this feature, often, private banks are better than public sector banks.

Auto-sweep Facilities

This resource brings together the cash flow of a savings account and maximum returns of term deposits. Beneath this service, if your savings account crosses an approachable limit, the amount beyond that limit is automatically transformed into a fixed deposit, and you will receive a higher interest. On failing to meet the minimum balance requirement, the amount pulled up with the fixed deposit is naturally transferred to your savings account.

What to keep in mind? 

It is necessary to check financial discipline and conduct thorough research on a savings account before an Indian bank account opening. It is because any particular account can not only escalate the ease of financial transactions but also overthrow your cost of financial transactions.

By setting up a Savings Account, you believe the bank has your money affairs. Hence, selecting the right bank that offers great deals and good customer service is crucial. Think carefully about the points mentioned in the above article. This way, you will ensure the selection of the right bank for an Indian bank account opening.

By Kritika

Leave a Reply

Your email address will not be published.