Indian banks offer different accounts to meet the diverse needs of customers. When opening an account, you must understand your needs to select the right account type. Since you make efforts to earn, you should store your money safely. After all, nobody wants their accumulated savings to go in vain.
We have all opened an account and are familiar with the Savings Account interest rates, uses, functionality, and benefits. However, there are minor yet meaningful variations which can increase your delight factor as a customer. You must spend some time assessing the right account type that aligns with your needs and provides facilities adding to your experience. Here is a complete guide:
Lifeline of all financial transactions
Cash transactions of high volume often become cumbersome, risky, and inconvenient to carry. There is also no legal record of debits and credits. Hence transacting through an account is the safest and most convenient measure. The entire world of e-commerce and digitised payments works predominantly on Bank Accounts. It is mandatory for all investments, Loans, and other types of borrowings.
Nominal interest rates
You need to maintain a balance in your account for liquidity purposes. There are innovative and competitive banks offering decent interest on Saving Account with monthly, quarterly, and half-yearly interest payments according to the chosen frequency. The interest gets compounded, making it even more attractive.
Minimum average balance
Bank Accounts are popular for their liquidity and hold a minimum average balance ranging between Rs. 10,000 to Rs. 25,000. They also charge you a penalty for not maintaining the minimum balance.
Some banks offer many add-on facilities, such as passbooks, chequebooks, and Debit Cards without charging you extra fees. However, other facilities like Online Banking and lockers come with additional fees. You should check their charges and compare them with other banks online.
Since it is the lifeline of the financial system, an account should have an eligibility criterion for everyone to qualify. Most banks painstakingly design their products to align with the audience that they want to cater to. For example, there are special accounts for children, women, senior citizens, and non-resident Indians to meet their financial needs.
These are accessible on the Banking app. With the rise in digitalisation, Savings Accounts have become a necessity. They are also the main reason for achieving contactless and cashless transactions.
Attaining financial goals
Whether you are saving money for buying a new car or building an emergency fund, having a strategy in place can help you attain your goals. Nowadays, banks are offering competitive and best Savings Account interest rates to attract customers and aid them in fulfilling their ambitions.