6 things to consider before opening a Savings Account
3 min read
Oct 23, 2023
With the growing use of digital payment systems, access to financial services like Savings Accounts has significantly increased. A Savings Account is one of the most important financial products that help you manage your finance. It is also a primary requirement to migrate to digital payments.
A Savings Account provides a secure place to deposit your surplus funds and earn interest with the facility to withdraw money without limitations. If you want to open a Savings Account, select the best one for your unique needs. Given below are the key factors to consider before opening a Savings Account.
1. Types of Savings Accounts available
If you are not sure what type of Savings Account you should opt for. Here are various types of Savings Accounts available, which are designed to fulfil specific customer needs.
1. Regular Savings Account: The most common type of Savings Account with a minimum balance requirement and a daily ATM withdrawal limit.
2. Digital Savings Account: It can be opened instantly using online banking. Axis Bank provides the facility for opening online Savings Accounts instantly within 7 mins through video KYC. Axis Bank Easy Access Digital Savings Account offers a virtual Debit Card with great cashback offers and discounts. Also, Axis Bank Infinity Digital Savings Account is a zero balance account @ Rs150 per month sign up charge.
3. Zero Balance or Basic Savings Account: This type of account requires no minimum balance. The account holder can maintain an account with a zero balance.
4. Senior Citizen's Savings Account: It is meant for individuals above 60 years. This type of account has preferential interest rates on deposits, credit with low-interest rates and discounts on healthcare services. Senior citizen accounts also offer high fixed deposit interest rates.
5. Kids Savings Account: This type of account is opened for minor children to help them understand the basics of banking and money management. It comes with all the features of a regular Savings Account but with certain limitations.
2. Minimum balance requirement for a Savings Account
Most Savings Accounts require a minimum balance with an initial deposit requirement. If you do not maintain the minimum balance, a penalty is charged. The minimum balance requirement also depends on the type of account and the location of the branch.
For instance, premium accounts with premium offers or accounts in urban areas have higher minimum balance requirements than regular accounts. Hence, check the minimum balance required before the Savings Account opening.
3. Savings Account interest rate
Interest rate is the money the bank pays the account holder for deposits maintained in the Savings Account. Axis Bank Savings Account interest rates range from 3% to 3.5% per annum depending on the balance maintained. Understand the calculations of interest rates on your Savings Account beforehand.
4. Types of Debit Cards offered with a Savings Account
Different types of Debit Cards are offered with Savings Accounts to suit individual needs. These cards offer exclusive rewards and discounts on shopping and can be customised according to your requirements. These can also be used for online transactions. Compare the various features offered by different Debit Cards and understand their utility before opting. For instance, if you require cash daily, a Debit Card with unlimited ATM withdrawal can be helpful for you.
5. Easy availability of credit from the bank
Having a Savings Account with a good banking history makes it easier to avail of credit from the bank. Banks provide pre-approved loans up to a specific limit to their existing customers instantly through online mode with minimum documentation.
Hence, for your future credit requirements, do check the credit facilities available before opening a Savings Account.
6. Locker facilities with your Savings Account
Once you open a Savings Account, you can access other banking products such as fixed deposits, insurance, and lockers. Most banks require a Savings Account to access the locker facility. Check whether you can use this facility with your Savings Account.
Conclusion
Opening a Savings Account is the beginning of your relationship with the bank. Therefore, choose the right bank with good customer service and features to help you reach your financial goals. Axis Bank Savings Accounts are customised for individual needs. Visit the bank's website for more details on opening a Savings Account.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author 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. Please consult your financial advisor before making any financial decision
