Keeping your finances in focus by saving a portion of your income is wise. A savings account offers you quick access to cash. Besides quick access, your savings earn interest, which helps to accumulate wealth.
Rather than keeping your cash idle at home, you can keep it in a savings account. Your money could be stolen or destroyed when it is at home. By depositing your funds into a savings account, you’re keeping it safe against theft. Plus, your money is insured by the bank. In case anything happens, you won’t get losses.
But before you open a bank account for your savings, below are the questions you need to ask the bank.
Most Critical Questions to Ask When Opening a Savings Account.
- How Much Will Your Savings Earn?
When you open a savings account, you invest money(nivesh kya hai) to earn profits. Ensure you opt for a bank with the highest returns on savings accounts. The higher the interest rate on your savings account, the more your money grows over time. This can even help you accumulate funds for larger purchases. Consider using a no cost EMI plan when you’re ready to buy something expensive, allowing you to spread out the cost without paying extra interest. Remember, building savings first can give you more flexibility when financing future purchases.
- What is the Minimum Balance Requirement?
Some banks require you to leave a colossal amount of money as a minimum balance. Comparing a bank’s minimum balances before opening a savings account is wise. Find a Bank with a NIL balance requirement for a savings account. This way, you can withdraw your savings without worrying about a penalty.
- How Much will the Bank Charge for Services?
You pay for various bank services when you open a bank account. Some fees you pay include ATM, personal checks, foreign transactions, overdrafts and account maintenance.
Transferring money between accounts also attracts some charges. Ensure that the bank you choose to open a savings account charge the least fees for these services.
- Does Your Account Allow Online Bank Account operations?
Today, you won’t have to visit the bank’s physical office to make a transaction. Before opening a savings account, ensure the bank allows online transactions.
With online banking, you can manage your account using the bank mobile app or net banking facility. Whether you want to play-bills, check your account balance, transfer money or deposit. You can do this all from the comfort of your couch with online banking. Plus, online banking saves you commuting time and cost.
- How Easy Will it Be to Transfer Money from the Savings Account?
You should transfer money from your savings to a checking account. Or some situations may require you to send money to another account. Before opening an account, check if your preferred bank allows easy transfer from the savings account.
- Does the Bank Insure Your Money?
Insurance secures your money when the worst happens. Let’s say you open a savings account and save, but the bank collapses. You should keep your savings secured by checking whether your bank provides insurance for your deposited money.
- Can I access savings when travelling?
Do you travel a lot? You could experience financial crunches while abroad. Check whether you can access your savings account when you’re abroad.
Many banks allow you to withdraw your money abroad using debit cards or ATMs. So, before you open a savings account with any bank, ensure they allow access to your funds abroad. When opening an account, inquire about what you should do to ensure your account and cards work while traveling abroad.
Conclusion
Research on savings accounts takes you a long way. Though it might seem like a lot of work, you should do it. Remember, money is precious, and you don’t need to risk it. With the above questions, you will get the best bank where you can open savings accounts.