When it comes to financial planning, you must know that the income of the person does not always remain the same throughout his life span, so while earning the income everybody should also give some time to their “Savings” portfolio alongside. For long term, we have to prepare a retirement plan and save accordingly in the right combination of financial and other assets so that you can meet your expenses after retirement.
During short term, we need “Savings” to meet the contingencies that may occur in our life, so most of these savings must be liquid in nature so that they can be used immediately. “Saving Account” is the most common short-term medium of savings that helps in meeting day- to-day expenses. However, nowadays banks are providing more and more facilities to saving bank accounts such as Zero balance Accounts to attract more number of customers.
In this post, we are discussing the points that everybody should keep in mind while opening a Saving Bank Account:
- 1. Ease of Opening:
The account can be opened with less formalities. These days it is a boon as it can be opened without visiting the branch just at the few clicks of a mouse from home by providing necessary documents in a digital mode or by Aadhaar verification. Know you customer (KYC) must be done with ease.
- 2. Ease to operate:
Banks provide you with an online user id /password to view and operate the bank account online, so that you can check your balance or transfer funds online.
- 3. Minimum Balance:
Normally banks ask customers to maintain a minimum balance in the bank account and if such balance is not maintained you have to bear some charges ,though we recommend you should at least hold an amount equalling to 3 months expenses in liquid assets (saving account). However, if you are aware that you will not be able to maintain a certain sum of it is rather beneficial to opt for a zero balance Saving account.
- 4. Interest Rate :
Generally, all banks provide 3.5 % interest rate on saving accounts but if your saving account is providing you with an “Auto Fixed deposit “ facility linked with your account, then you can earn a higher interest rate .
- 5. Hidden Charges:
You should confirm from the bank that no hidden charges are there to operate the bank account and minimal charges for transaction are done through the branch. No charges should be levied for taking bank statements, funds transfer (to certain extent) and bill payments. If there are any charges, then they must be declared by the bank beforehand. In our view, it is also our responsibility to confirm the charges from the bank on all types of transactions and other annual charges, if any.
- 6. Debit Card:
Debit card is a must for a saving account but physical debit cards are prone to misuse, so banks must provide a Virtual Debit card, which can be used to shop online and pay other day to day expenses .
- 7. Reward Points:
Banks are running a Reward point system for Saving bank Accounts holders and these points can be earned by use of your debit card and online purchasing ,booking flights,, train tickets,,bills payments and insurance premium deposits etc. These reward points can be redeemed by shopping online for free. These value added services also add value to your saving account resulting in more saving for you. Banks also tie up with various vendors, which give exclusive offers for bank specific customers.
Hope all these points are helpful to select the appropriate Saving Account