Savings accounts provide an interest rate of 3.5- four per cent. However, some banks offer an interest rate of six to seven per cent. Some banks give an interest rate of up to seven per cent, however, the minimum balance requirements.
Opt for a savings account with a bank that has branches near your home and widely available ATMs so that you can access funds easily and also do any necessary bank work
Savings accounts provide an interest rate of 3.5- four per cent. However, some banks offer an interest rate of six to seven per cent. Some banks give an interest rate of up to seven per cent, however, the minimum balance requirements.
Fee And Charges
A savings account has several fees associated with it. There are some free withdrawals from the bank ATM and other ATMs after which there are fees for each withdrawal. There are fees for issuing new cheque books and debit cards. There may also be fees on demand drafts and physical copies of account statements. Check the fees for services you would normally use to have an idea.
Minimum Balance Requirements
Most banks require a minimum balance of Rs 10,000 for urban and metro branches, Rs 5,000 for semi-urban branches, and Rs 2,500 for rural branches. Failure to maintain a minimum balance can incur a fee of Rs 150 to Rs 600. To avoid these fees, you may opt for a zero-balance savings account.
Branch And ATM networks
Opt for a bank that has branches near your home and widely available ATMs so that you can easily access funds and also do any necessary bank work.
Additional Benefits
Some savings accounts come with personal accident insurance. You can also get discounts when shopping from select brands. These mostly happen when making purchases through a debit card. Look for a bank with a robust discount program.
Consider Premium Savings Accounts
Some banks offer premium savings accounts. They have a higher minimum balance requirement but come with some additional features like higher interest rates. It provides privileged banking services and a dedicated relationship manager for all your banking needs. Preferential loans and locker rates are also available for such accounts.
There are also added lifestyle benefits like discounts. Premium debit cards may also offer access to airport lounges. Some savings banks also have a feature where any amount above a certain threshold is automatically shifted to a fixed deposit account. You may consider a premium account if it aligns with your needs.
Customer Service
Choose your savings account with a bank where the customer service channels are helpful whether it is phone, email, and chat. If the IVR process is complicated and it takes a long time to reach a human customer service associate, it is better to avoid such a bank for having a savings account.