A savings account helps managing the personal finances like paying the utility bill, transfer money, withdrawals, to shop, to address contingency needs, to invest, to receive money, and so on.
The balance in the bank account can earn you interest at the rate of 3.50%-7% per annum, as opposed to it lying idle and perhaps unsafe at home. Moreover, Section 80TTA of the Income Tax Act, 1961 provides a deduction of up to Rs. 10,000 on the interest income earned on the savings account.
Savings account are offered by almost all banks in India and in various types of saving bank accounts today, with frills and no-frills, with distinguishing features catering to your needs.
A regular savings account, salary account, senior citizen savings account, youth account, women’s saving account, zero balance savings account, linked savings account are some of the types of savings bank accounts.
Such availability confuses many on which savings account is the best for them.
Below is a list of points which will help you choose the right savings account
Interest rates
Interest rates are the first thing you must check which the bank is offering. Before 2011, interest rates were fixed at 3.5% per annum, but now interest rates for savings account have deregulated by RBI since 2011.
Banks are offering interest rates at a range of 3.50% – 7% per annum, so choose the one which gives you the highest rate of interest.
Balance requirements
Savings account have to maintain a certain amount of balance. The minimum balance requirements vary with the type of savings account you choose. Government banks have a much lower minimum balance requirement when compared to the private ones.
If you are not interested in maintaining the minimum balance requirement, then you open a Basic Saving Bank Deposit account. But the facilities and services of such account is minimum.
Online banking
Nowadays, almost all banks have online facilities. It is necessary to check out whether the online banking facilities of the bank is up to the mark or not. Check out the online banking website of the bank on the internet to see whether it is customer-friendly or not.
Banking apps
Banking apps have made life easier for account holders. Banks apps linked with your bank account makes payment of bills, fund transfer, checking account balance etc. much easier through a smartphone. Make sure your bank offers the best bank app.
Service fees
Avoid bank that charges high service and maintenance fees on the bank account. Such high service fees will eat up your savings. Such charges are levied while banking transactions, removing a bank statement or fund transfer. Services charges are usually less in public banks compared to private banks, but their service may not be up to the mark.
Account safety
Always choose a bank that will provide top-notch security to your money and personal details. You do not want your money and personal information to fall into the wrong hands.