Summary: Thanks to digitisation, opening a savings account today is hassle-free and quick. However, along with the interest rate offered you should also consider minimum balance requirement, processing fee, additional services, exclusive offers, discounts and more. Read on to know more.
Opening a savings account is probably your first interaction with a bank. It is the most basic financial product for savings. You can also use it to conduct regular transactions such as receiving a salary or grocery shopping.
We often only pay attention to the interest rate whileopening a savings account. Here is a quick guide onhow to choose a savings accountbased on other important factors.
Minimum Balance RequirementEvery bank has differentsavings account limitsand minimum balance criteria. The bank may charge a high monthly penalty if you fail to maintain this. So, understand your bank'sminimum balance requirementbeforeopening a savings account.
For example. IDFC FIRST Bank offers two types of savings accounts with different minimum balance criteria:
Rs 25,000 (for a Visa Platinum debit card)
Rs 10,000 (for a Visa Classic debit card)
Processing Fees
While most transactions and services come free of cost, there may be a processing fee (or some other charge) on certain transactions. For example, annual debit card fees, cheque returns, international ATM transactions, etc., attract additional charges. Research well to understand the various fees, so you are never surprised. IDFC FIRST Bank believes in absolute transparency and advises you to view all the charges mentioned on the website before signing up for a service.
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Additional banking products and servicesAsavings bank accounthas several other products and services you should review. For example, debit and credit cards and netbanking services are additional benefits you can enjoy as the world goes cashless. Check for these services and related additional fees. IDFC FIRST Bank's savings account comes with add-on products like personal accident insurance of up to Rs 35 lakh with your VISA Platinum debit card.
Discounts and offers
Discounts and offers are available when you transact using the debit card linked to your savings account. These offers include free airport lounge access, zero surcharges at petrol pumps, cashbacks, reward points, and other benefits. With an IDFC FIRST Bank VISA Platinum debit card for your savings account, you get one complimentary domestic airport lounge access every quarter. So, check for such offers before you zero down on a savings account with any bank. If used mindfully, you can save a lot of money simply by availing of these offers on debit card transactions.
Great Customer ServiceGood customer service is paramount, and every bank should aim to offer it. Check if your bank's online customer services include internet banking, mobile banking, UPI-based transactions with various payment apps, chat support,checking accountbalances, online transactions, etc. In fact, many 'new-age' banks oronline bankshave sprung up, offering quick online services to their customers.
To sum it up
IDFC FIRST Bankis one step ahead regarding customer service quality. It has a 24×7 customer service helpline and comes with great features such as monthly interest credit, free and unlimited ATM withdrawals, low processing charges, and an interest rate per annum that is one of the bests in the industry on savings accounts. Reach out today toopen a savings accountwith IDFC FIRST Bank!
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circ*mstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.
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As well as the highest return, other factors to consider when choosing an account include how often you will need access to the money, how tax-efficient the account is, and what your savings goals might be.
The interest rate on savings generally is lower compared with investments. While safe, savings are not risk-free: the risk is that the low interest rate you receive will not keep pace with inflation. For example, with inflation, a candy bar that costs a dollar today could cost two dollars ten years from now.
Savings comprise the amount of money left over after spending. People may save for various life goals or aspirations such as retirement, a child's college education, the down payment for a home, a car or vacation, or another future event. Savings may commonly be earmarked for emergencies.
The 50-30-20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should dedicate 20% to savings, leaving 30% to be spent on things you want but don't necessarily need.
An emergency fund is important for anyone who wants a financially stable future, because you never know when you might need to cover an unexpected household or medical expense. The general guideline is to accumulate three to six months' worth of household expenses.
Many personal finance experts recommend saving at least three to six months' worth of expenses. But this could also vary based on if you experience income fluctuations and other personal factors. If you don't have an emergency fund yet, it can help to start with small savings goals, and work your way up from there.
The bottom line on online banks: You'll likely get the most savings bang for your buck with an online bank, as they tend to offer higher interest rates than brick-and-mortar banks or credit unions.
Introduction: My name is Lakeisha Bayer VM, I am a brainy, kind, enchanting, healthy, lovely, clean, witty person who loves writing and wants to share my knowledge and understanding with you.
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