Opening a bank Account: Tips to choose the best saving account

Posted by Divya Kapoor on October 14th, 2019

These days due to the fear of theft and loss of monetary possessions, people are opting for a safer place to keep their money so that it can be free from the fear of failure and theft.

There are many types of bank accounts to choose from, which entirely depends upon the basic purpose to serve with. Some of the accounts are namely saving account, current account, fixed deposit account, etc.

Each of the accounts varies from one another in terms of its type, and the interest rates occurred. In the case of a current account, the rate of interest is different from that of a savings account, and the savings account may have different terms, unlike a deposit account. The savings account is the most convenient mode of a money deposit, as it allows flexibility in money withdrawals. The interest rate is also relatively modest.

What is a savings account?

As per the word suggests saving, i.e., safeguarding or retaining a part of the income from future expenditure, designed especially to meet a particular personal need. Saving accounts are the most basic kind of bank account as it does not need any amount specification to open it. Anybody can open a savings account by depositing the minimum amount. Besides, there is no classification of the group of people or any eligibility for opening a savings account.

Why Choose a savings account?

The basic feature of saving accounts that make it more opted and reliable is the minimum amount deposit, which can be as less as nil. Saving account holders also enjoy the flexibility of money withdrawals irrespective of time. In addition to that, saving accounts also enables the account holder with the facility of ATM withdrawal cards and debit cards at the same minimum deposited amount which otherwise falls in higher criteria in case of other bank accounts.

Facilities of saving accounts may vary from banks to banks. So it is advisable to choose wisely from the several financial institutions to deposit your money. The rate of interest can also vary a bit.

For this purpose, the customer needs to verify the terms of the respective financial body before depositing his money. He must also compare the rate of interests of different banks. Banks usually have different interest rates on savings accounts. So it is wise to choose a bank that offers a higher rate of interest on the principal amount.

Since choosing the best saving account is our prime concern here, the following are some tips to guide you through the same:-

 

Explore: If you are new to open a bank account, the first thing you must do is to explore and research various banks and financial institutions. You must adhere to the terms before going for it.

 

Check terms and conditions: Once you are set to go with a particular bank to deposit, you may need to go through its terms and conditions based on the deposit and rate of interest. This will ensure better returns in terms of interest.

Choose a local body: It is wise to choose a local financial sector than choosing a prominent banking sector for saving purposes. Credit unions or community banks usually raise the rate of interest, thus fostering fast saving.

Keeping the above terms in mind, one can surely choose saving deposit accounts over any other bank accounts owing to the benefit it provides to its customers. Moreover, opting for a reliable bank account is more economical, thus enhancing a better saving mode. 



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Divya Kapoor

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Divya Kapoor
Joined: March 13th, 2019
Articles Posted: 5

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