All of us know that opening a savings account is a great experience. Many savings account from different banks look similar. The features of the savings account depend on whether you open the savings account online or offline. The interest rates of the savings account also differ from bank to bank.
There are some things that you should check before opening a savings account. In this article, we talk about such things and the purpose of opening a savings account.
Purpose of opening a savings account
Following are the objectives of opening a savings account. Let us talk about these.
- Transfer the money
- Pay bills
- Online banking
- Save money
- Keep money on the transactions
Considerations before opening the savings account
Below are a few considerations you keep looking at before opening an online open savings account.
- Minimum monthly balance
To go with the high-interest rate on offers, you have to maintain the minimum monthly balance or deposit the same amount every month. If you are unable to meet these requirements, the bank will lower the interest rates for the month.
So it is suggested to determine how much money you can save every month and then find the right bank that provides the bonus rates on fulfilling the criteria. It is suggested to set the automatic deposit into your savings account.
- Services provided by a savings account
Before opening a savings account, you must check whether they provide the facilities such as debit cards, balance sweep facility, net banking, phone banking, etc., or not.
- Promotional interest rates
Many banks provide promotional interest rates to new account holders. These interest rates are used to limit the time before reverting to the standard interest rates of the savings account.
- Withdrawals Frequency
A lot of the savings accounts have put limits on the number of withdrawals that proceed in the month. If you want to make frequent withdrawals, then you have to choose the savings account that allows you to make the maximum withdrawal without any penalty.
- ATM Facility
Some savings accounts do not come with an ATM facility, which means you are not able to withdraw the money through the ATM. To make the process easier, it is suggested to choose the savings account that allows you to make the transactions with the ATM.
- Account Related Fees
There are many savings accounts available with no account fees, but there are also some accounts that come with the account fees, which come under the terms and conditions.
- Branch deposit fee
- Counter transaction fee
- ATM withdrawal fee
- Cash deposit fee at the non-home branch
Opening a savings account is not enough for your bank journey; after that, you have to develop good relationships with the bank, so further investments, savings, loans and other options are better prepared according to your requirements.