Top Features of the Best Savings Bank account in India
We, Indians have always been told to save. Hence, it is expected that each of us has at least one savings bank account in a private or public sector bank. That being said, we tend to become complacent and never evaluate the offers and benefits that banks provide.
Economic experts argue that as the typical Indian mindset is to save and not base their finances on credit or debt, there will be a continuous rise in the demand for such accounts. Banks also need to maintain and increase their CASA (Current Account and Savings Account) balance to increase their float and profitability.
Thus, this leads to a healthy competition among banks resulting in them offering the best deals and offers to customers to increase their respective market share.
Here are some factors you should consider before choosing your savings bank account.
1. Interest Rates
The interest rates offered by various banks differ greatly. Some banks offer better and higher rates than others. This would mean that you earn higher on the money you save. Before you choose your bank account, this is the primary factor to check. Compare the interest rates and choose a bank that offers the highest interest rate for you.
2. Minimum Balance
Generally, banks expect the account holders to maintain a certain minimum balance in their savings account. However, some banks also waive off this requirement in case you hold an investment such as a SIP or deposits such as recurring deposits of a nominal amount with them. Check the options with your bank when it comes to maintaining a minimum balance.
3. Overhead Charges
ATM withdrawals, not maintaining the minimum balance, fund transfers, locker charges, etc – all these services are chargeable. However, banks may waive off or charge nominal fees based on the value of the banking relationship that you maintain. Discuss with your bank as to what all fees would apply to you if you were to open a savings bank account with them.
4. Benefits and Offers
Many banks also offer special services to their savings bank account holders. Small services such as cash, cheque deposit or pickup, offering medical cards, hospital panels or insurance, etc are also offered. Understand the kind of benefits that would be offered to you by your banker and accordingly evaluate them before choosing a bank.
Due to the increased potential of this sector and growing business, banks offer savings bank accounts that are customized to your needs. They have a special account for senior citizens, for women, etc. Hence, it is best to check if you fall under any of these categories so that you may make use of the benefits that are associated with such customized savings bank accounts.
In conclusion, you should consider all the above factors and not just the interest quotient. Make an informed decision by evaluating your bank based on all these factors. Further, remember to also consider their digital platform and customer support services.