A savings account is a type of account offered by banks to deposit money and get interest on it. This account also helps make payments and buy things with ease.
How savings account deposits can help you?
- Your saved money can provide financial security during unpredictable circumstances, such as job loss, medical emergencies, or car repairs.
- It can help you achieve your long-term financial goals, like buying your dream car, house, etc.
- It helps you earn money on your deposits while keeping it safe.
- It helps develop savings habits and keep the money ready for any urgent need.
There are several types of savings accounts, and choosing the right one can be a little challenging. Let's look at some of the features that will help you make the best decision.
Top 10 features of a savings account
1. Interest Rates
One of the most important features of a savings account you must consider is the interest rates.
Banks offer interest rates that range from 2.5% to 7% per annum; the actual interest rate will depend on the bank and type of savings account. Before you open a savings account, ensure you compare different options and choose the one that offers the best interest rate.
2. Minimum Balance Requirement
Most banks require customers to maintain a minimum balance in their savings accounts; failure to do so can attract penalty charges. However, opening a 0 balance account with Kotak811 can resolve this issue. This type of account does not have a minimum balance requirement and is perfect for those who do not have a stable job and income.
3. Account fees & charges
Have you ever learnt of cases where someone opened a savings account, deposited money in it, and later noticed that they have less money or even owe the bank? This can only happen if you don't check the fees and penalties before opening the savings account.
Some banks charge customers for account maintenance and other services like cheque bounce charges, ATM withdrawal fees, and SMS alerts. When opening a savings account, always check the fee, charges and penalties and choose the one that charges the least.
4. Withdrawal & deposit limitations
Another one of the most important features of savings account is the withdrawal and deposit limitations. Most banks have restrictions on the number of transactions you can make in a savings account. The best savings account is the one that matches your needs related to deposits and withdrawals.
5. Online & mobile banking services
The banking sector has quickly adapted the digital processes. Most banks offer online and mobile banking services, allowing customers to access their savings account wherever and whenever they want. When checking the features of a bank account, ensure online and mobile banking services are available.
6. ATM access & debit card
ATM or Debit cards are necessary to easily operate your savings account anytime and anywhere in India. When checking the features of a savings bank account ensure you choose a savings account that offers a free debit card for ATM access and other spendings. This will enable easy withdrawal of cash, online or in-store purchases, and make payments without problems.
7. Account statements & notifications
After every calendar month, you can get your account statement which shows your deposits, withdrawals, and other account activities. It also shows the purchases you've made using your debit card or cheques you've issued to anyone. This statement helps you monitor and manage your savings account in terms of deposits, withdrawals and payments. This lets you track any errors or unauthorised activities in your savings account.
Bank account statements also serve as proof of income and expenses for tax purposes and loan applications. The bottom line is, having a bank account statement can help you better manage your finances and keep track of your financial well-being. When opening a savings account, be sure to choose the one that offers regular statements and notifications.
8. Overdraft protection
Overdraft is a facility that allows you to withdraw more than what you have in your savings account. Some savings accounts offer this facility as an added advantage. Choose a savings account that provides overdraft protection that suits your financial needs.
9. Customer service & support
Customer care, service and support are other critical factors to consider. Getting good customer service and support means you don't have to struggle with all your banking issues and queries. This leads to an easy and convenient, stress-free banking experience. So make sure to open your savings account with a bank having a dedicated customer service department, available 24/7.
10. Additional features & benefits
Before you open a savings account, always ask yourself; what more can I get? Several savings accounts come with additional features and benefits. These include insurance coverage, reward points, discounts, debit cards, SMS alerts and much more. Consider the option with additional features of a savings account that best suit your financial needs.
Opening a savings bank account is essential, but choosing the most suitable one is even more important. While this process can be a little challenging due to the many options available in the market. There are several factors you carefully consider to make it less complicated and ensure you make the right choice. Carefully consider the factors discussed in the blog and choose a savings account offering the best benefits and features.
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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. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and 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.