Savings accounts are perhaps the simplest of banking services that you can get. For this reason, these are most widely availed by customers. Moreover, the Indian government has now made it much simpler to open a savings account. It is done through the Pradhan Mantri Jan Dhan Yojna (PMJDY) scheme, which aims for people belonging to even the remotest parts of the country to have a bank account. In a situation like this, you just have to open a savings account, if you don’t have one already.
However, opening a savings account is not entirely simple. You could end up being with a bank that does not fit your way of spending money. Hence, you have to be sure that the bank you choose has the right kind of savings account for you. The way to do that is to ask all the right questions to yourself about your banking requirements. Here are a few questions that you might need to ask yourselves:
What type of savings accounts should you go for?
If you want to make sure you get the right thing, you have to know what you want beforehand. Each bank offers a wide range of options in savings accounts. Each type of account has unique features that may or may not suit you. If you feel confused by the different types of savings accounts, you can always go for a regular savings account. They come with the standard savings accounts features and can be extremely useful in themselves.
Other types of savings accounts differ based on the features they offer. These features can include international debit cards, accidental coverage, unlimited transactions through ATMs, higher withdrawal limits, etc. You can choose from these features and create a savings account experience that matches your requirements.
How much minimum balance do I need to maintain?
When opening a savings account, make sure to check if it is a zero-balance account or if you need to maintain a minimum balance. Maintaining a minimum balance means that there should always be a fixed amount of money in the account. If you end up withdrawing too much, you might go below the minimum balance and will have to pay a fine. If the account you are opening is one that needs a minimum balance, make sure it is an amount that you can manage to maintain. If not, try to get an account with a lower minimum balance or a zero-balance account.
What is the ideal interest rate on the bank account?
Usually, you hear interest rate and your mind goes straight to loans. However, savings accounts have different kinds of interest rates. In this one, the bank pays you a certain percentage of interest each year for keeping your money with them. Different banks in India offer varying rates of interest. Where some offer only 3.5% interest on their accounts, there are others that offer up to 7% interest on savings accounts. Ideally, you should always go for the higher interest rate.