9 Tips to Choose the Best Savings Account

1. Higher Interest Rates: Growing Your Money

One of the primary factors to consider when choosing a Savings Account is the applicable interest rate. Small Finance Banks generally offer higher Savings Account interest rates compared to traditional banks. Compare different interest rates before deciding on a particular account.

2. Balance Requirement: Finding the Right Fit

Different savings accounts have varying minimum balance requirements. While the idea of a zero balance account may sound attractive, these accounts often come with limited benefits. It is essential to evaluate the value of services and add-on benefits in relation to the minimum deposit amount required.

Let’s understand this with an example:

Scenario 1: Ravi has recently started working and wants to open his first savings account. He doesn't have a significant amount of money to deposit initially but wants access to basic banking services without any charges.

In this case, he might consider opting for a zero balance or basic savings account that offers essential features and doesn't require a minimum balance.

Scenario 2: Meera, on the other hand, has been working for several years and has built substantial savings. She wants her savings to grow and earn higher interest. In this case, a high-yield savings account could be a better alternative for her. In most cases, a high-yield Savings Account come with minimum average balance requirements.

3. Easy Account Accessibility

Over the last decade or so, there has been massive tech advancements in the banking and financial services sector. Today, you don't necessarily need to visit a branch to open or manage your Savings Account. Thanks to Digital Banking, you can open, access and maintain a Savings Account on the go. Open an account with a bank that offers Digital Banking services.

4. Fees and Charges: Know What You’re Paying For

Before signing up for a Savings Account, it is essential to thoroughly understand the schedule of fees and charges associated with various banking functions, including your Savings Account. Some common charges to consider include ATM withdrawal fees, currency conversion charges on foreign transactions, NEFT/online transfer charges, etc.

5. Additional Features: Auto-Sweep FD and Linked FD

In addition to interest rates and fees, it is important to consider the features offered by a savings account. Two features to look out for are Auto-Sweep Fixed Deposits (FDs)  and Linked FDs

Auto-Sweep FDs

Auto-Sweep FDs allow you to automatically convert surplus funds in your Savings Account into an FD when the balance exceeds a particular threshold. This feature enables you to make the most of your savings by earning higher interest rates without any additional effort.

Linked FDs

Linked FDs work seamlessly with your savings account by allowing you to use funds from the FD when your account balance falls below a certain limit. This ensures that you never face insufficient funds for essential payments.

6. Debit Card Benefits: Added Value

Savings Accounts come with Debit Cards. These cards typically offer incentives on transactions and other added benefits like insurance coverage, enhanced transaction limits, discounts across categories, and more. Go for Savings Accounts that offer feature-rich debit cards.

7. Ease of Opening an Account: Embracing Digital Solutions

With advancements in technology, opening a bank account has become easier than ever. Many banks now offer Online or Digital Savings Account. Opening such accounts require minimal documentation and zero paperwork.

8. Savings Account for Women

Such accounts are designed specifically for women to simplify their banking chores. Women Savings Accounts often come with exclusive benefits like attractive interest rates, Mobile and Video Banking facilities, enhanced cash deposit limit, flexible balance maintenance options, and more.

9. Customer Support and Service

A good Customer Service translates to a seamless banking experience. Open a Savings Account with a bank that offers Customer Support via multiple channels, including Phone, WhatsApp, Live Chat via Chatbot, in-person assistance at brank branches, etc. For instance, Ujjivan SFB offers Mobile Banking services in 9 different languages, WhatsApp Banking, doorstep banking services, and other services that are designed to offer a seamless banking experience.