Choosing a Savings Account Based on Your Financial Personality

Savings Account aligned with your financial life? For example, high net-worth individuals (HNIs) prefer bank accounts that offer maximum benefits and privileges. Similarly, early jobbers prefer basic savings accounts with low minimum balance requirements. 

In this blog, we’ll explore how to choose a savings account based on your financial behaviour/personality. 

Let’s Understand Your Financial Personality

Your financial personality reflects your approach to money management, including how you save, spend, and invest. Here are three common financial personalities:

1. The Planner: You’re organised, focused on long-term goals, and prefer stable, predictable returns. 
2. The Adventurer: You enjoy taking calculated risks and seek higher returns by exploring new investment opportunities. 
3. The Saver: You prioritize financial security, prefer low-risk options, and focus on building a solid foundation for your future.

Identifying your financial personality will help you choose a savings account that meets your specific needs.

Exploring Banking Options

Once you’ve identified your financial personality, it’s time to explore different banking options. Here are some to consider:

1. Traditional Banks: These well-established institutions offer a wide range of services, but may have higher fees. 
2. Credit Unions: Member-owned and often providing competitive rates with lower fees, though they may have a limited branch network. 
3. Small Finance Banks: Like Ujjivan SFB, these banks cater to urban and semi-urban customers, offering innovative digital solutions and personalised services. The interest rates offered are gerenrally higher compared to traditional banks, allowing you to grow your money quickly.

When choosing a bank, consider accessibility, fees, interest rates, and digital banking capabilities.

Selecting the Right Account Type

After selecting your preferred banking option, choose an account type that aligns with your financial personality :

1. Digital Savings Account : Ideal for busy savers who prefer online banking and no minimum balance requirements. 
2. Privilege Savings Account : Best for those who maintain a higher balance and want unlimited transactions and added perks. 
3. Maxima Savings Account : Suitable for those looking to maximize their savings with zero charges on commonly used services.

Assess each account type’s features, eligibility criteria, and benefits to ensure it meets your needs.