The first step to avail of the banking services and facilities is to open your savings account. When you open your savings account, the bank permits you to accumulate the savings and earn interest rates. With the increased scope of digital transactions, everyone needs to choose a suitable savings account that gives the best exclusive features at a low rate of operating costs.
In this article, we will tell you some tips for choosing the savings account that best fits your requirements.
What do the customers look for in a savings account?
Many customers are worried about how to open a bank account. If we talk about the savings bank account, then many customers are looking for the type of savings account that offers high-interest rates as compared to the other accounts. Those savings accounts that offer a higher rate of interest also affect the increase in overall return, no matter whether you pay the maintenance charges or not.
Under the deregulation of the interest rates on the savings account, many banks offer a competitive rate of interest to their customers. However, it is worth observing that the interest rates are offered only on the particular amount of the savings account. You have to be ready for the updating interest rates of your savings account.
Savings account for more flexibility.
Some savings accounts need the account holders to maintain the minimum average monthly balance but fail to fulfill the requirements and get caught in penalty conditions. This restriction is equally compensated in the form of various advantages, along with complimentary services such as a dedicated relationship manager, online DD generation, insurance cover and many more.
On the other hand, the premium type of savings account carries a high minimum monthly balance, but interest on the deposit money is generally lowered. Also, there are many bank accounts that carry no AMB requirements but provide a few free services on withdrawals, ATM and debit cards.
Hidden charges of savings account that lowers the effective rate of interest
Choosing the best savings account mainly depends on the interest rates and the schedule of the charges. These charges consist of annual maintenance charges, penalty on non-maintenance charges, ATM fees, fund transfer fees, transaction charges and ATM transaction fees for exceeding limits.
There are many premium savings accounts that carry the annual maintenance charges on a savings account that affects the overall interest earned. Those accounts that have no or lower maintenance requirements also have restrictions on ATM withdrawal limits.
If you frequently need to perform a huge number of ATM transactions, then you have to select the savings account that offers you facilities for a lot of transactions, even if the annual maintenance charges are high.
Conclusion
In this article, we tell you about some factors for choosing the best savings account. This article highlights factors such as minimum balance requirements, hidden charges, rates of interest and flexibility.
