A Savings Account is a safe place to store surplus funds. It allows you to earn interest on your savings and withdraw money anytime, usually without limitations. With the growing popularity of digital payments, access to a Savings Account has become important. Such an account is a primary requirement for digital payments.

It is an important financial product that lets you manage your finances. So, you earn benefits when you open a Savings Account online. However, before opening such an account, ask yourself some critical questions.

What types to consider?

Today, multiple Savings Accounts cater to the needs of specific customers. For example, you can open a Regular Savings Account with your preferred bank. Such an account usually has a minimum balance requirement, and there may also be a daily withdrawal limit from ATMs. You could also opt for a Zero-Balance Savings Account.

Alternatively, you can opt for a Senior Citizen’s or Minor Savings Account. Understand your requirements and choose an account that matches your needs.

What are the interest rates offered?

The Savings Account interest rates are at which the bank pays interest on the money you maintain in your account. The interest rates usually vary across banks. Compare the rates and terms of various banks and choose a suitable Savings Account.

What are the associated fees?

Besides knowing how to open a Savings Account online and which account to choose, you should know the different bank charges. This includes account maintenance fees, charges for ATM use, costs related to transferring money between accounts, and more. While it is easy to glance over the fee schedule, taking the time to calculate the fees helps you choose a bank that charges lower fees. It also saves you money every year.

What are the minimum balance requirements?

Most Savings Accounts require you to maintain a minimum balance. If you do not, you need to pay a penalty. Hence, determine the minimum balance requirement before opening a Savings Account.

What are the services offered with the account?

A Savings Account includes a Debit Card, chequebook facility, balance sweep, Online Banking facilities, and other facilities you might need. If you need locker facilities, check if your Savings Account offers them. Such facilities are usually beneficial. Hence, even if it means having a higher minimum deposit, it is better to get them all.

Conclusion

Having answers to these questions before opening your Savings Account may sound like too much work. However, it should take little time. Besides, when you research and pick the best bank, you can spend considerable time, money, and hassle.