Check Before Opening Bank Savings Account
The purpose of savings account is to develop a habit of the saving. At the same time a savings account will allow us to use our money whenever we want to. Savings bank account is safe and highly liquid. We also earn a nominal interest on money saved in our account. The interest rate is compounded on the half yearly basis.
You have to research well before opening the savings account or else you will end up earning. The lower interest rate or paying more for the certain services. To maximise the earning potential, you need to Check The Number Of Things Before Opening Bank Savings Account
Minimum Balance Criteria
Before opening savings account. Check out the minimum balance is required as the penalty associated in case of the non maintenance. This can be as the high as Rs 450 per month. Although banks do offer the Basic Savings Bank Deposit Account (BSBDA) with a no minimum balance requirements. These accounts provides the very basic banking services and have the restrictions. On a number and amount of the withdrawals, transfers, deposits and ATM transactions. While the SBI has waived off the minimum balance of requirements. The private banks such as Axis bank and ICICI Bank requires you to maintain the monthly a average balance of Rs. 10,000 in their regular savings accounts in the urban and metro locations.
Debit Card Offers
Most of the banks provide free insurance and purchase protection on the debit cards. Some of debit cards provide discounts, zero surcharge at the petrol pumps, airport lounge access, EMI facility, reward points and cashback offers. If it is used wisely, debit cards can in fact bring down the transaction costs. Therefore, when choosing savings account. You have to compare the deals available with the debit card offered.
ATM and branch density
Check the number of the ATM centers available to you in your vicinity and in a places or cities frequented by you. As RBI has a limited the numbers of free ATM transactions. In the other banks’ ATMs to the three per month in a metro locations. Non availability of the bank ATMs will increase your cash transaction costs.
Quality of service
As most of services offered at the banks branch are now available on a mobile app and banks site. You do not have to visit the banks premises too often. However, for the services such as locker and cash transactions you will still have to visit bank branches. Therefore, carefully consider a quality and promptness of the services offered by bank before the opening of an account with it. In this aspect, often the private banks surpass the public sector banks.
Transactions or Service Charges
Before opening savings bank account, compare theservice charges and transactions charges levied by the banks. On services such as cheque return charges, outstation cheque collection, annual charges for the debit cards and charges for the issuing duplicate pass books, statements and the cheque books. Usually, a public sector banks have the lower transaction and service charges. For the instance, they can charge you Rs 50–Rs100 for cheque returns. Whereas the private banks can charge you anywhere from Rs 400 to Rs 500.
This facility bring together a liquidity of the savings account and high returns of term a deposits. Under this facility, if the savings bank account crosses a threshold limit. A amount beyond that limit is automatically converted into the fixed deposit, earning the higher interests for you. And when you will fail to meet a minimum balance requirement, a amount parked with the fixed deposit will automatically transferred to your savings account.
Thus, financial discipline and the proper research on a saving accounts before settling on any of particular account can not only increase the ease of a financial transactions but also brings down the cost of financial transactions.
Read the fine print
Before opening savings account. You have to read the fine print because most of the banks now charge extra for the transactions or services. That you were not paying for the earlier and may not even avail of.
Below is a list of documents that the bank will ask you to furnish. As the part of their KYC (know your customer) procedure to open the savings account.
- Residence proof
- PAN Card details
- Introduction of an existing account holder
- Passport size photographs
- So if you do not have savings account, research well and open a savings account. This is will also help you to develop the habit of saving.