5 Tips for Choosing the Right Bank for Opening a Savings Account

A savings account is your go-to destination if you’re looking for fund safety, liquidity, money management, bill payments, and competitive interest rates. Mentioned here are some tips that can help you choose the right bank for your savings account.

A savings account is a must if you wish to keep your money safe. It allows you to withdraw your deposits conveniently while earning interest from it. Most banks today offer a variety of savings account to cater to the specific needs of their customers. From a student savings account to salary savings account, there are quite a few options to choose from. However, it is important to choose the bank carefully for opening a savings account.

The following are some factors that you should consider for choosing a suitable bank for opening a savings account for yourself.

1. Interest Rate

Interest rates are the biggest USPs when it comes to a savings account. It allows you to earn from your deposits while giving you quick access to the funds. Choose a bank that offers a competitive interest rate on your balance. While most banks offer about 4% interest on the savings, some offer up to 7%.

2. Terms and Conditions

Give a thorough read and pay close attention to the terms and conditions that the bank offers before proceeding any further. Without proper research, you might end up with a savings account that does not serve you purposefully. Look out for any introductory or teaser rates. Calculate your potential deposits to compare your eligibility in order to maximise your interest earnings. You might encounter restrictive limits to successive withdrawals and surprise fees sometimes as well. To make sure that your withdrawals are smooth and facilitated, and to avoid any unexpected overhead charges, give the documents a good read.

3. Online Presence

A wide physical presence of the bank is not a crucial factor anymore. The Internet has revolutionised banking like every other industry with traditional brick-and-mortar offices being replaced and supplemented by online support and services. The reasons behind its sudden and immense popularity among the masses are ease of access, higher interest rates, and fewer restrictions as compared to its conventional physical counterparts. Banks have started investing in better customer support on online platforms and applications. With the growing popularity of online transactions, banks have also shifted their focus on offering secure online transfer services to their clients. Choose a bank that offers online banking either through their website, mobile application, or both. Some banks also offer phone banking, which can be an added advantage.

4. Look out for Perks

Some banks might offer attractive and profitable perks with a savings account. Additional services that banks might offer are,

• Complimentary debit cards

? Partnered programs

• Auto upgrades

? Tax advisory and support

• Personalised solutions

? Discounts and offers

• Family banking and insurance benefits

? Competitive Forex prices and ease of application

While perks and add-on features surely make it attractive, ensure you don’t fall for marketing gimmicks. Rather than choosing a bank based purely on the huge list of features, opt one that offers you features which will be advantageous to you.

5. Balance Requirements

When you’re opening a new account, most banks would ask you to make a minimum deposit into the account. While you can withdraw it once the account becomes operational, it is still an amount to be considered. The next to consider is the balance that you need to maintain in the savings account. Most banks offer accounts with no requirement of minimum balance in savings account. This ensures you can bring down the balance of your account to zero in times of need without attracting any penalty. When you’re just starting out, a zero-balance account could be the right choice. However, accounts that come with some balance requirements usually also come with added perks and benefits.

With appropriate research and introspection, you can land perfect savings account for your personalised needs. Don’t hesitate to make choices wisely before doing so. You can also read customer feedbacks and reviews before choosing. Keep in mind the factors mentioned above, and you’re good to go.

Savings account are the most conventional methods of saving money, and they have been around for a long time.