How to Choose the Savings Account that Best Fits You

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.