Know The Essential Features Before Opening A Savings Account

By Author: Financeking
Total Articles: 1
Comment this article

Savings Accounts refer to a financial instrument offered by several banks in India. Here, accountholders deposit money and earn interest on the funds in their account. Typically, you can deposit funds without any limitations. You can also withdraw money from your account whenever needed. Apart from these, a Savings Account is also packed with several other features and advantages.
Hence, before you open a Savings Bank Account, you must know the various essential features. These include the following:
1.Savings interest rate
Today, you can open a Savings Account offline. Alternatively, you can skip the hassle of commuting and open your account online using the Banking app or website of your chosen bank. Upon activation, your bank pays interest on the funds you store in it at a specific interest rate decided by them. Hence, by depositing the funds in a Savings Account, you can not only keep them safe but also grow your money.
The interest rate varies across banks. It may also change depending on the banking policies of the RBI. Hence, when opening an account, you should compare the rates offered by multiple ...
... banks. Choose the highest-interest Savings Account for yourself. The interest rate could also change according to the funds you deposit in your account.
2. Debit Card
Most banks offer a Debit Card when you open a Savings Account. You can utilise this card to withdraw cash at ATMs. You can also use it to make payments offline as well as online.
3. Mobile and Internet Banking
Banks usually offer Internet and Mobile Banking facilities with your Savings Bank Account. With these, you can conveniently log in to your account online and make transactions, register your billers to pay utility bills on time, open Fixed and Recurring Deposits, etc.
4. ATM facilities
Once you open a Savings Account and deposit money, you can easily withdraw the funds from ATMs using your Debit Card whenever required. Transactions at your bank’s ATMs may be free. However, cash withdrawals or non-financial transactions from the ATMs of other banks may incur a charge if you exhaust the number of free transactions. Hence, you must know of such charges when opening a Savings Account.
5. Account tenure
Savings Accounts do not have fixed terms. You can maintain your account for as long as you like.
6. Access to investments
When you open a Savings Account, you can access risk-free investment options like Fixed and Recurring Deposits. These enable you to make goal-oriented savings and earn assured returns at the end of their terms. Some accounts may also give you access to five-star-rated Mutual Fund investments and expert insights on investments.
7. Minimum balance requirement
Some banks need you to maintain a fixed amount as a minimum balance in your account. Failing to do so can result in a fine. Hence, determine this factor when opening an account.