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Key Savings Account Features to Focus on Apart from the Interest Rate
A savings account is a type of bank account in which customers can deposit money and receive interest on their balance. It also enables them to withdraw funds as needed. In addition to these essential functions, a savings account may provide a variety of extra perks and opportunities. This makes it a popular choice for saving and investing. So, you already know what is a savings account. Savings account features may differ based on the bank and account type. Aside from savings account interest rate, this post will look at what makes a savings account appealing.
Easy Transactions
You may utilise your Savings Account to make and receive payments. This may be done via Net Banking or your Debit/ATM Card. This function reduces the need for cash in all transactions, particularly when paying bills. Apart from that, IDFC FIRST Bank stands out with its enticing features when exploring savings account options. By opening a savings account in this bank, you will also get to earn up to 7% p.a. interest on your savings, the convenience of monthly interest credit, and unlimited ATM withdrawals.
Minimum Balance Requirement
Numerous banks mandate that savings account holders uphold a minimum balance in their accounts during new bank account open. However, certain savings accounts, like salary or zero balance accounts, might not entail such a prerequisite. Neglecting to maintain the stipulated minimum balance could lead to penalty charges. Notably, IDFC FIRST Bank stands out as one of the select few banks that exempt savings account holders from adhering to a minimum balance requirement.
Customer Service and Support
Numerous banks require that savings account clients maintain a minimum balance in their accounts. Certain savings accounts, such as salary savings or zero balance accounts, may not need such a condition. Failure to maintain the required minimum balance may result in penalty costs.
Net Banking and Mobile Banking
Typically, your bank will furnish you with Net Banking amenities alongside your Savings Account, facilitating seamless transactional activities as discussed previously. Through online login, you can conveniently initiate payments and receive funds. Additionally, downloading the bank’s mobile app onto your device enhances accessibility, allowing you to conduct banking tasks from any location. Moreover, mobile banking apps afford the convenience of communicating with bank representatives for inquiries, eliminating the need to visit the nearest branch.
Security and Protection
When choosing a savings account, prioritise safety and security. Ensure that the bank employs strong security measures to prevent fraud, unauthorised transactions, and identity theft. Look for features like multi-factor authentication, encryption, and FDIC deposit insurance coverage to protect your assets.
Accessibility and Convenience
Evaluate the savings account’s accessibility and convenience. This covers online and mobile banking services, ATM numbers and locations, and the simplicity with which funds may be transferred between accounts. Choosing a bank that provides powerful digital banking options can improve ease and flexibility in financial management.
The Bottom Line
Savings accounts provide a straightforward method for accruing saving bank interest rate on your funds. They typically offer higher interest rates compared to standard checking accounts while still maintaining accessibility for spending and withdrawals. Nevertheless, it’s worth noting that savings account rates are lower in comparison to other investment options, and they may not effectively counteract the effects of inflation.
