For most people, a savings account is the primary mode for transacting with financial institutions and banks. This account is the place to store the extra cash safely and permits you to build the nest egg for your family.
The savings account has put a lot of significance in the investment portfolio. In this article, we are going to tell you about the factors that help you to choose the best savings account according to your requirements. Let us take a glance at the all facts.
Interest rate
The savings account pays a lower interest rate than the other account and investment options. The savings account interest rate lies from 4% to 6%, which varies from one bank to another. So it is suggested to check the interest rate before choosing the bank for a savings account.
Minimum cash balance
Many public banks offer low minimum cash balance norms, whereas private banks offer a considerable minimum balance. So it is suggested to choose the banks that do not make you lock in the amount in your savings account.
Network or presence of bank
The current generation depends on web-based applications that extendto the banking sector in the form of net banking. But some transactions need you to visit the bank’s branch. So it is beneficial to choose the bank that has a vast network with the other branches.
Service charges
Some banks charge you the service fees for every financial year. It is suggested to determine whether these charges are applicable at the time of online savings account opening.
Choose the more transparent bank, which is better than the other that appears a low cost but keeps the exact costs hidden.
Debit card deals
To stand among the competitors, many banks provide deals on debit cards that range from cashback offers to insurance coverage. Also, some banks apply the levy fees on debit cards, while some apply this amount if the annual transactions cross the minimum threshold limits.
Doorstep banking facilities
According to the current scenario of the busy schedule and the hectic lifestyle, certain banks provide doorstep services such as demand draft delivery, cash, cheque pickup, etc.
Now, the banks have started doorstep banking facilities for account deposits. Some banks also provide the demand drafts at the requested location, but all the bank services come at a specific cost that you must consider while opting for the savings account from the specific bank.
Some banks are opened priority banking verticals, which has dedicated relationships manager catering to customer who has a high net worth.
Conclusion
This article consists of the top factors that help you to choose the best savings account. It is wise to determine all the factors before opening a savings account. This will also help you to have a profitable and transparent relationship with the bank in the long term.
