Money matters made easy: 6 pointers to consider before opening a savings account

A savings account plays a crucial role in your financial journey. It helps with your daily expenses and offers opportunities for future growth. Whether you are saving for a big vacation, a house down payment, or just a rainy day, savings accounts are a must-have. Also, with competitive interest rates, your money can accumulate over time and provide safety during uncertain times.

Most importantly, savings accounts offer more security than keeping your funds at home, as they are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to Rs 5 lakhs. Thus, you earn interest on your deposited funds while maintaining full-time liquidity and safety.

But how to choose the right savings account that offers the best benefits and security for your money? Here are 6 points to consider.

Account type- Choose wisely, save wisely

Banks offer a range of savings account options, each designed to fulfill different financial needs. A regular savings account works well for everyday use, but if you want to save more thorough interest, explore options like a high-interest savings account. Besides, some banks offer savings accounts exclusively for women, kids, couples, senior citizens, and even salaried individuals. Understand the features and benefits of each account type to open the right account for your goals.

Minimum balance requirements

Ensure that the minimum balance requirement of a savings account aligns with your financial capacity. For example, if you are a student or have multiple financial obligations, you may prefer savings accounts with low or no monthly average balance requirements. If you have a stable income or a well-paid job, a bank account with a slightly higher minimum balance can be advantageous, as it may provide additional features and perks.

Accessibility and convenience

Choose a bank with large-scale branches and ATM reach so that you have the flexibility to manage your finances efficiently 24*7.

For example, assume you are a sales representative and frequently travel for your company. Here, choosing a bank with a large ATM network nationwide will be a great advantage. You can conveniently withdraw cash for expenses without incurring extra charges for using other banks’ ATMs.

• Account fees

Banks may charge fees for certain services on your savings account. These can include ATM withdrawal charges after a certain limit or fees for requesting a duplicate account statement and a checkbook.

For instance, if your bank allows only five free transactions, you must pay charges after every 5th transaction via ATMs. Thus, choose a bank with transparent fee structures and minimal fees to avoid unnecessary expenses.

Online banking facilities

In this digital age where technology dominates, online banking is necessary. Choose a bank with a user-friendly online platform and a mobile banking app for easy account access. This way, you can check your account balance or current savings account interest rates, transfer funds, pay bills, invest, apply for insurance, and even open fixed deposits from any location.

Value-added features

Some banks offer additional perks and benefits with their savings accounts. These can include cashback offers, discounts on shopping or dining, reward points, and insurance coverage. While these should not be the primary factors, they can add value to your banking experience.

Open a savings account and simplify your money management

A savings account is a useful tool to manage your expenses and future goals while growing your money. However, paying attention to factors like interest rates, fees, or online banking facilities will further help you maximize the value of your savings account.

Banks usually do not restrict the maximum savings account balance as they earn from deposited funds. However, if such a limit is introduced, you can open another savings account to continue saving without constraints or limitations.