For most of the people out there, saving accounts is the main mode of transacting with any financial institution, mainly the banks. This account serves as one place for extra parking cash and allows you to build a nest for the entire family. Even though a savings bank account has loads of significance in terms of an investment portfolio, sadly, it is the least researched financial sector product to consider.
So, it might get a bit overwhelming when you finally decide to work on the best savings accounts for your needs. With loads of options, which one can you possibly choose? Well, some of the key factors will help you to make the right choice. So, getting as much information on these benefits and features will be your prime goal to consider.
- The level of interest rate:
Savings accounts offer will mostly go for the lower level of interest rates when compared to some of the other investment areas. Even after the RBI has deregulated the interest rates in 2011, most of the banks still continue to present lower rates on the chosen savings accounts. The rates have been around 4%, at the current stage, especially after the pandemic.
While some of the private banks will offer attractive rates of around 6% and higher for luring in customers, it is always better to focus on fine print before selecting any bank!
- The minimum cash balance to maintain:
Typically speaking, the public sector banks will have nil to lower minimum cash balance norms for multiple accounts of INR 500 to INR 1000. But, then you have some private players who would demand some considerable minimal balance of INR 5000 to INR 10000, if not more. So, to be on the safer side, it is better to select a bank that will not force you to lock in any substantial amount within your account.
- Service charges or thee ancillary fees:
Some banks might charge you for the ancillary services like duplicate Pin or ATM card numbers, SMS alerts, cheque book after minimum free quota and more, for every financial year.
Be sure that you are well aware of all these charges while opening up a savings account with the bank. Also, remember that a more transparent bank is always better than anyone with lower costs. They might keep some of their costs under hidden values, and that’s the last thing you could have asked for.
- Network or presence of the financial institution or bank:
It is true that the present generation is mainly thriving on web-based apps. It has extended to the banking sector these days, as mentioned under names like mobile banking or net banking. However, there are some transactions that might need you to visit the branch. So, it is highly advantageous to have a bank with a widespread network with multiple other branches.
Conclusion
Before you proceed further and start the digital savings account opening process, try to focus on these steps now. It will actually help you to make the right choice with the best bank and its savings account.
