A savings account is always a good avenue to keep your excess money safe that is not required urgently. Not just that, opening a savings account helps encourage one’s habit of saving money for the future. From a school-going child to a senior citizen, anyone can open a savings account with a bank or any financial institution. It’s up to you to choose which bank you need to open an account.
Features of having a savings account
- It helps to promote savings
- No restrictions on the number of deposits
- Money can be withdrawn either by a cheque or withdrawal slip. The facility has been made easier by withdrawing using an ATM card.
- There is no validity period for a savings account. You can keep hold of that account as long as you maintain a minimum balance and keep it functioning.
- Often, one must keep in mind that a minimum balance should be maintained to avoid charges for not holding any balance in their account for more than a month. But these days, there are new banks that offer zero balance savings account to attract their customers.
- An online facility like mobile banking app is available for managing your savings account. With this, you can make any bill payments or fund transfers or pay household expenses.
Finding the right savings account can be very daunting, to say the least, but if you know why you wish to open a savings account and what you want to achieve out of it, then it becomes easier to compare savings accounts that various banks offer and select one.
There can be many reasons for opening a savings account, but it is best to know the different saving accounts available out there and all the benefits and perks they offer before you zero in on one. If you are applying to open a savings account, then here are a few things you should be sure of the following things-
- Know what the core purpose for opening this account is- is it for an emergency, saving for a short-term goal, earning interest on idle money, or simply keeping your money secure in a bank.
- Be sure about the money you save in this account, and ask the bank about the redeeming option and conditions in advance
- Make sure you know if there is a minimum balance to be maintained every month
- Know what is the savings account interest rate that you get before you finalise your purchase
- Ask how many deposits or withdrawals you can make in a month
- Enquire in detail about the features of the account
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Once you know the core purpose of your savings account, it will become much easier to decide which bank to approach and whose account opening offer is a better proposition. For example, some banks have a legacy of decades and are trustworthy just by the mere mention of their name, but they might not give you as much rate of interest as the other private banks and other competitor banks could offer.
So, if earning higher savings account interest rate on your saved amount is important to you, then you should be selecting a savings account accordingly. However, if keeping your money secured and insured is more crucial, then it is better to go with a trusted name and adjust a little in the interest department.
After knowing which type of savings account you want and how much savings account interest rate you are looking at, you must go for reputable banks like Axis Bank. It only takes a few clicks to apply for one online, and the bank representatives take care of everything once you have started your process!
