In today’s world, everybody wants to make savings for their life. Thanks to major banks and financial institutions that allow people to open their savings accounts and take a step towards the savings of their life.
Opening a savings account means taking a step towards availing all the banking services that permit you to store your savings and earn interest on it with time. With the high trend of digital payments, choosing a suitable savings account that offers you better features at low operating costs is important.
So, if you also want to choose a suitable saving account, then you should read the article to follow all the tips below.
Choose the savings account that offers a high-interest rate
Many customers want to open a savings account with higher interest rates than other banking accounts.
- A savings account offers a high-interest rate that will increase the overall returns, even if you must pay a few charges on account maintenance.
- With the deregulation of savings account interest rates, many banks provide competitive interest rates to gain more customers.
- So, you must always stay updated with the varied interest rate.
Choose the savings account with a low AMB requirement for more flexibility
Some savings accounts need the account holders to maintain an average minimum monthly balance (AMB).
- If the account holder fails to meet this need, they must pay the penalty.
- These restrictions are only compensated through several benefits, like a dedicated relationship with the manager, insurance cover, online DD generation, pre-approved loan offers, etc.
- Many savings premium accounts bring high AMB ranges from INR 50,000 to INR 1 lakh, but the interest earned on this amount is lower.
Hidden charges on your savings account lower the interest
- These charges include ATM fees, annual maintenance charges, non-maintenance penalties of AMB, fund transfer fees, transaction charges, etc.
- Many premium savings accounts carry annual maintenance charges and affect the overall interest earned on your account.
- If you want to perform many ATM transactions, you should choose a savings account that offers many free transactions, even with a higher AMB.
Additional benefits of exclusive discounts and deals
Many banks provide additional benefits to savings account holders.
- The additional benefits offered with a savings account are a subscription to an OTT platform, no/low-cost EMI, railway and airport lounge access, cashback, movie tickets, etc.
- So, if you want to manage your AMB requirements, you should choose the savings account that comes with these exclusive discounts, deals and offers.
Conclusion
No doubt, a savings account provides many benefits to the account holder. But if you follow the above tips while choosing a savings account, it will surely work best for you.
