Savings accounts offered by banks are undoubtedly the most commonly used option to keep money safe. There are a variety of savings accounts that different banks offer, and almost all of these accounts look similar. And it makes it difficult for you to choose the best bank for a savings account.
The savings accounts may seem the same until you closely research their features and zero them down to the most suitable savings account. In this article, we’ve listed a few pointers that you should remember to find the best bank for savings accounts.
Tips to Pick the Best Bank for Savings Account
When looking for a bank to open a savings account, look for the following features to opt for the best bank for savings accounts:
- The interest rate offered by the bank: The first and most basic benefit a savings account offers the account holder is the interest return. This is provided on the money held in the account. According to the Reserve Bank of India (RBI) guidelines, banks must calculate the daily interest on a savings account balance. But it is at the Bank’s discretion to credit the interest monthly, quarterly, or semi-annually to the savings account. Various banks offer different interest rates on savings bank accounts. Some leading banks offer an interest return of up to 6.50% on a digital saving account, which leads to significant earnings for the account holder.
- Minimum balance criteria: Most banks require the account holder to keep a minimum amount in the account. If the minimum balance is not maintained in the savings account, the holder needs to pay some nominal penalty charges to the bank.
To avoid penalty charges, the customer can inquire about a zero-balance account with the bank. A zero-balance account allows the account holder to use the entire balance available in the bank account. And upon doing so, no penalty shall apply for the complete withdrawal of funds.
If you plan to withdraw funds frequently and of a large magnitude from the account, you can prefer a bank that offers a zero-balance savings account. Failure to maintain the minimum balance on the savings account usually attracts a fee from the bank. So, opt for a zero-balance digital saving account.
- Transactions or service charges: Before signing the account opening form for a savings account, read the terms and conditions mentioned in the form carefully. There may be charges associated with the savings account.
See which features you use sparingly and exclude them from your savings account to avoid paying extra charges. But the charges levied on services you intend to use frequently decide the cost of holding the savings account.
Banks may charge you for transferring funds to an overseas bank account, or there may be restrictions on the number of free online transactions you can make using the savings account in a month. Find out about these charges and opt for a bank with the least charges and penalties.
- Easy online access to the account: Check if the bank offers a digital savings account and facilitates online operations on the savings account. The bank’s website and mobile application should be easy-to-use, safe, and efficient.
They should cover all basic banking services related to a savings account. The bank should extend basic facilities, like checking the account balance, transferring funds, and making fixed deposit investments through the savings account.
- ATM and branch density: Though people prefer online banking, there are some functions for which you need to visit the bank branch. Check the bank’s network in and around your area. Also, check the availability of the bank’s ATMs for easy cash withdrawal and cheque deposit facilities.
- Customer Support: These days, several banks offer customer doorstep facilities on various banking functions, like cheque and cash pickup, demand draft delivery, and collection of documents required for banking activities.
If you have a hectic schedule and want to avoid visiting the branch for day-to-day activities, consider opting for a bank that offers these modern banking services to customers.