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Maximizing your savings: Choosing the right type of savings account
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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
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With various types of savings accounts available, it may be tough for you to choose the account that best matches your needs. As the bank account you select may have a major impact on your overall financial health, it is a must to choose a savings account that is ideal for you. Doing so would not just provide you mental peace that your funds are secure and safe, but also offer additional advantages like higher savings account interest rates, cashback, online accessibility, higher withdrawal limit, attractive interest rates on loans, etc.
Discussed here are some of the crucial consideration points you must factor in to choose the best account among the different types of savings accounts out there.
1. Interest rate
An important aspect you must consider when selecting a savings bank account is the interest rate. A higher savings rate is offered if the funds in your account are under a specific threshold. Presently, savings bank accounts are offering a rate of up to 4% per annum. So, before you hit on the online savings account opening button or opt for offline opening, ensure to check the offered interest rate. Zero in on the account that offers the highest interest rate and maximum benefits according to your needs.
2. Minimum average balance criteria
Before you open a savings bank account, check the minimum average requirement and the charges incurred if you fail to maintain the balance. While banks offer savings accounts with zero minimum average balance requirements, such accounts usually come with basic services and benefits with restrictions on deposit, withdrawal, ATM transactions, and transfers.
3. Offers and benefits on debit card
Important benefits provided by debit cards involve reward points, discounts on online and offline transactions, no-cost EMI options, cashback offers, and airport lounge access. If used responsibly, debit cards can reduce your transaction cost to a massive extent. Hence, when selecting the c, ensure to compare the various debit card deals on offer.
4. ATM network
Check the number of ATMs available near your home and the overall ATM network of the bank. Remember that there is a limit set on free transactions allowed in other banks’ ATMs. In case you exceed the free transaction limit, a fee will be charged on every transaction via the other banks’ ATMs. The presence of your bank’s ATM near your home and office will permit you to forgo any unnecessary transaction fees, which may be levied on withdrawals or other transactions via other banks’ ATMs.
5. Service quality
Owing to the development of technology and the rise of digitalisation, the need to visit bank branches physically has been reduced. However, for services like locker transactions, cash deposits, etc., you might still need to visit the bank branch. Thus, make sure to factor in the promptness and quality of such services before you opt for the savings account.
Ending note
As a savings bank account is the fundamental route for most of your financial transactions, you should make sure to select a bank account after you have factored in the above aspects to maximise your savings and get the optimal benefits at a low cost.
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