September 23, 2021

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How To Pick A Savings Account Best Suited For You

How To Pick A Savings Account Best Suited For You

When it comes to buying the ‘house of your dreams’ or catering to an emergency, a Savings account is your go-to. This type of account is to cater to the unexpected. To adhere to short-term and long-term, the Savings account is the knight in the shining armour.

The different types of Savings account are Regular Savings Account, High-interest Savings Account, Jumbo Accounts, Money Market Accounts and the Online Savings Account.

Along with a variety of options available for a Savings account, there might be an overwhelming element of nature when it comes to zeroing in on an account. In order to know which bank is the best for you, given below are a few pointers that will help you in opting for a viable Savings account,

Interest Rate

Back in 2011, the RBI deregulated the rate. It gave the allowance to banks to set the rates of interest on savings account according to their discretion. For a Savings Account, banks provide you with an Interest Rate from 4% p.a. - 6.25% p.a. 

Note: If you have an amount of below INR 50 Lakhs, you will receive an Interest of 3.50% p.a. On the other hand, if you have INR 1 Crore in your account you will receive an Interest of 6.25% p.a.  

Irrespective of whether you are receiving an Interest that is proving to be beneficial, you should check if you can fulfil the ‘minimum balance criteria’ and terms and conditions that come along with the same. 

Also Read: Infinix Note 7 Price In Nigeria

Minimum balance

Like you need to maintain a minimum balance for your bank account, this is not required for a Savings Account. You need to check if the account can be opened as a zero-balance or needs a specific amount. If the money dips to the lower amount, which is set for the minimum requirement, you will be charged with a penalty. 

Charges

Make sure to brush through the terms and conditions to have know-how on the fee structure pertaining to the account. You can ignore the fee structure if you rarely use them. An administrative fee is the most levied fee by the bank and if you are not confident about giving in the minimum capacity, choose a bank that will not impose a fee.

Access

Go for a bank that provides you with a preferable mode of digital banking. Since work from home is being emphasized upon, basic functions like keeping a check on your account, being eligible for fund transfer or PPF on your phone or computer should be practised.

Offers

A free cheque book, cards and discounts are one among the plethora of options provided by the Savings Account. You can make these services available for you with a Debit Card. If you do not need to use those discounts on dining, it is viable for you not to make use of it.

Density

The need to withdraw money amidst a pandemic should only arise in the case of an emergency. This need helps you to finalize a bank that provides you with an innumerable amount of ATMs and branches within your city of residence. 

Listed below are bulleted points to know more:

OOTB

Thinking out of the box to choose a Savings Account will be to hop into the nearest bank within your vicinity. With today’s situation, you can approach your bank at any given time from a phone or tablet. At the same time, community banks also might offer you with a bunch of benefits, provided you keep a check and put it to good use. 

Compare

Now, each and every bank comes with its own set of rates and fees. Make a list of those factors and come to a final decision. 

Eligibility

The documents that can be accepted for a Savings Account will be your passport, license, ID card, birth certificate, credit bill and bank statement. Credit Unions have an additional round of documents owing to the membership. Unions are clubbed with associations who donate to a cause or charity.

Tech-savvy

Check if you can pay the money through a paycheck or a purchase. With today’s time and situation, paying on your phone is a viable option. Research on the options and perform it to prevent yourself from unnecessary repercussions.

The banks providing the best Savings account options are,

Banking Institutions

Rates

RBL Bank Saving Account

6.75%

Indusind Bank Savings Account

7%

Kotak Mahindra Bank Savings

4%

HDFC Bank Savings Account

Up to INR 50 Lakh - 3.5%; Above INR 50 Lakhs - 4%

ICICI Bank Savings Account

Up to INR 50 Lakh - 3.5%; Above INR 50 Lakhs - 4%

Digibank by DBS

Up to INR 1 Lakh - 5.5%

Lakshmi Vilas Bank Savings Account

Up to INR 1 Lakh - 4%; Above INR 1 Lakh - 5.25% - 6.5%

State Bank of India Savings Account

Up to INR 1 Lakh - 3.25%; Above INR 1 Lakh - 3%

Bank of Baroda Savings Account

Up to INR 50 Lakh - 3.25%; Above INR 50 Lakh - 3.75%

Paytm Payment Bank Savings Account

3.5%

Airtel Payments Bank Savings Account

4%

With the above-mentioned information provided to you in one piece, it will be easier for you to choose amongst the best savings accounts provided by banking institutions and cater to all your needs, provided by the same.