Top 5 Savings Account Features You Should Know
5 min read | 3 months ago
The good old savings account is the most basic yet crucial financial product offered by banks and financial institutions. In 2021, reports indicate how 78% of Indian citizens above the age of 15 had bank accounts. This clearly testifies to how savings accounts are indispensable for a large section of the population in our country. Savings accounts often come with several helpful features that you should also know about (if you don’t already). Here’s taking a closer look at the same in this article.
1.ATM Transactions
What can beat the sheer convenience of withdrawing cash at your nearest ATM? This is one of the biggest features offered by savings bank accounts, i.e. debit cards. You can apply for the same while setting up your account. While transactions are free across ATMs of your bank, there may sometimes be limits on the number of free transactions that you can make at ATMs of other banks. Crossing this threshold may lead to nominal charges being debited from your account and you should thus make a note of this fact.
2.Minimum Balance Requirements
You should consider minimum balance requirements as an important feature when selecting a savings account. All savings accounts expect you to leave a minimum amount of balance in order to prevent low balance charges. If you can’t follow the minimum requirement, your alternative might be picking a savings account that requires less balance or does not have any requirements at all.
If you're looking for a savings account with no monthly maintenance fees, consider a small finance bank zero balance account. These financial institutions typically offer savings accounts with no fees or lower fees than traditional banks. However, it's important to check the terms and conditions of the savings account to ensure that there are no hidden charges in the equation.
3.Competitive Interest Rates
One of the top features of a savings account is that almost all such accounts can yield competitive interest rates. It is worth looking out for when choosing a savings account. You should compare interest rates across different banks before making a final decision. Some banks offer you more interest than others, so looking out for the difference can positively impact your savings over time. Banks like Unity Small Finance Bank offer interest ranging from 5% to 7.5%, depending on your monthly balance in the account. Do note that this is subject to change, depending on the market conditions.
One of the most popular features of a savings account is the option for additional financial products, such as lockers, fixed deposits, and recurring deposits. A locker is a secure storage unit that is offered by banks to its customers to keep their valuables safe. This is a great option for those who don't have a safe place to keep their important documents, jewellery, or other valuable items.
Fixed deposits, on the other hand, allow you to earn higher interest rates than traditional savings accounts by depositing a lump sum of money for a fixed period of time. Recurring deposits allow customers to save a fixed amount of money every month for a pre-determined period, making it easier to build a savings habit over time.
5. Online and Mobile Banking
Finally, online and mobile banking are important features to consider when choosing a savings account. Online and mobile banking allow you to manage your savings account from anywhere and at any time. You can check your account balance, transfer money, and carry out various transactions using your smartphone or computer.
Many banks offer online and mobile banking as a standard feature of their savings accounts. However, it's important to check the features and functionality of the bank's digital platforms before opening a savings account. Some banks may offer more robust features, such as budgeting tools or financial education resources that can help you make the most of your savings.
Conclusion
Savings accounts represent the beginning of your journey in the formal banking and financial system (at least for most of us). They are the basic foundation for your financial strategies and goals throughout your lifetime. Keep these features of savings accounts in mind and compare interest rates carefully before making any final decision. Here’s to unlocking financial freedom and building up your savings with your own account (if you haven’t got one already!).
FAQs
1.What fees are associated with savings accounts?
Common fees include monthly maintenance fees and excessive withdrawal fees. However, many savings accounts offer fee waivers for meeting certain requirements.
2. Is there a limit to the amount of money that can be deposited in a savings account?
There is no limit to the amount of money that can be deposited in a savings account. However, some banks may have daily or monthly deposit limits for security purposes.
About Unity Small Finance Bank
Unity Small Finance Bank is committed to making banking simpler and more accessible for everyone. Our services include Savings Account, NRI account, Current Account, Fixed Deposits, and Personal Loans offering flexible tenures and attractive interest rates. We also offer financing options like MSME Loans and Microfinance to support businesses and underserved communities. Learn more about Unity Small Finance Bank here.
