Things to know before Opening a Savings Bank Account

When you start thinking of managing your finances, the first thing that you need to do is open a savings account. It is the first step towards financial security, and mentioned in this post, are some points to consider when you open a new account.

A savings account is the first step in securing your future. Instead of leaving your cash out, you can create a savings account with a reputed bank and start saving while earning interest on your balance. While most savings accounts have certain common features, you should check out some other points to ensure that you will get the maximum return from your bank and your account.

1. ATM Withdrawals

While the primary purpose of a savings account is to save money, you should also be able to access your funds easily. Your ATM debit card enables you to withdraw money up to a specified limit per day from ATMs. There are two types of ATM withdrawals -

• Bank ATM withdrawals, and
• Non-bank ATM withdrawals 

The savings account interest rate could vary slightly from bank to bank, but it could also depend on the deposit and the type of bank account you have chosen. Senior citizens are mostly entitled to a slightly better interest rate. 

3. Different Types of Savings Accounts

Banking needs differ based on your sex, age, financial goals, requirements etc. Banks offer different types of savings account to cater to these specific needs. Open the right type of account based on what you’re looking for. Some of the popular types are;

●        Women Savings Account

●        Senior Citizen Savings Account

●        Locker Savings Account

●        Salary Savings Account

●        Multi-purpose Savings Account

Each of these savings accounts come with some unique advantages, such as a discount on annual locker rentals, preferential branch banking, no minimum balance requirement, and more. For instance, if you plan to invest in the share market, you can opt for a 3-in-1 savings account that brings together a savings account, a Demat Account and a Trading account in one package. Contact the bank official to understand various products and choose the right one for you. 

4. Fees and Charges

Every savings account comes with a set of fee and charges. It is important to be aware of these charges before you open a savings account. Note that an account with the lowest charges is not always the best, just as one with the highest fee may not be suitable for you. Charges and fee also come with added privileges and benefits on the account. Some of the typical types of charges you should check are;

●        Low balance charges

●        Chequebook order charges

●        Online transaction charges

●        Locker charges

5. Ease of Opening and Operating the Account

Technology has made it easy today for people to open and operate an account. Most banks allow you to open an online savings account and operate one from the comforts of your home through net banking or mobile banking. Just fill the application form and submit your KYC documents to get started.

A new interest savings account will help you to streamline your accounts and manage your finances better. In addition, you will be able to avoid several pitfalls later once you make the preliminary inquiries.