Few Important Points to Keep in Mind While Opening a Savings Account

When it comes to committing transactions with a financial institution, a business mostly relies on its savings account. The extra cash that you earn needs a safe and secure destination, and there’s no better place than your savings account. The financial instrument is hardly any point of research for a usual business owner, although it reflects a significant portion of his investment portfolio.

Factors that can help you to pick the best savings account:

Minimum cash balance

Public sector banks offer a zero balance account or allow you to maintain a much lower minimum cash-balance worth 1000 INR. On the contrary, the private sector banks require you to maintain a minimum balance worth 5000 INR. Experts advise you to opt for a bank that doesn’t require you to block a substantial amount. However,if you choose to go with private sector banks, you must enquire about the fees that they will charge for a low-balance account.

Rate of interest

In comparison to your other investment options, savings bank accounts offer a much lower interest. A majority of banks are still yielding lower interests since interest rates got deregulated by the RBI. You must check out the maintenance clauses prior to opening your savings account with a private bank that offers higher interest rates.

Banking network

Web-based applications have dominated the present generation and are now making their presence felt within the banking sector. Mobile banking and net banking are two of the latest features that come with a savings account. However, you might need to visit your bank’s branch for a certain transaction. So, it is in your best interest to open your account with a bank that has branches spread all over India.

Ancillary fees and service charges

Many financial institutions levy charges for some of their regular services per year. These services include issuing cheque books beyond their free limit, duplicate PIN number and cards besides SMS alerts. You must acquire knowledge on these charges while applying for your savings account. You must opt out of a low-cost account that levies hidden charges in favour of a transparent account.

Deals on debit cards

Multiple debit card deals are offered by banks in their attempt to keep competition at bay. These debit card deals may range from insurance benefits to cash-back offers. While some of these banks are known to charge yearly charges of their cards, while the rest set a waiver for individuals that transact business worth over their minimum threshold limit. For example, certain platinum and gold debit cards are issued by banks. These cards yield a range of benefits for a yearly charge.

Banking facilities at your doorstep

To help you cope with your busy lifestyle and hectic schedules, banks are extending cash collection facilities at your doorstep. Demand drafts are also being delivered by some banks at your doorstep, but you’ll need to bear a cost for such services. In their attempt to serve high net-worth customers, certain dedicated relationship managers are maintained by the priority banking verticals of some banks.

Prior to opening your bank account,it’s truly important for you to check and evaluate all factors that drive a consumerist setup. It will help you to establish a long-term relationship with your bank that’s vivid and lucrative.