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How to Compare & Choose the Best Savings Account?
A savings bank has become one of the most popular bank accounts that a person invests in, which can be used for different purposes, such as paying bills or a down payment. It is the first-ever interaction between the customer and the financial system of the country.
Keep reading to learn about the crucial tips that will help you to choose the best savings bank account.
How to Choose the Best Savings Account in a Bank?
Now, before circling on your preferred savings account, you need to consider some key factors, such as:
- Know the Interest Rates
The interest rates and their frequency of interest credit varies from bank to bank. Some banks follow the monthly credit system, whereas others pay it half-yearly or quarterly.
This makes a huge difference as the banks offering the same interest rates vary in their annual percentage yield when the credit system is different.
- Learn about Fees and Charges
The banks provide various services in the interest of the customer, such as debit cards, demand drafts, credit cards, etc, concerning your savings bank account.
This is why our banks charge a fee at the year or half-yearly to continue with the services. Just as the interest rates, fees, and charges also vary depending upon the bank.
- Be Aware of Account Features and Benefits
The savings bank account should have features that include debit cards, credit cards, or demand drafts. The account should also allow fund transfers through UPI, NEFT, IMPS, or RTGS in any form.
The most important feature of a savings account should be the high liquidity which allows the consumer to transfer money as it may concern the account holder.
- Check Standards of Customer Service
Customer service plays a very important role in determining the relationship between the consumer and the bank.
The bank should be approachable in case of any kind of queries or complaints and should have a robust customer service facility.
Comparison of Different Banks Offering Savings Bank Accounts
In the following table, you will get a savings account comparison of different banks to help you choose one:
| Name of the Bank | Minimum Deposit Account | Interest Rates |
| State Bank of India | NIL | 2.70% |
| Kotak Mahindra Bank | ₹ 5000-₹ 10,000 | 3.50% |
| Axis Bank | ₹ 10,000 | 3.00% to 3.5% |
| Bank of Baroda | ₹ 500-₹ 1000 | 2.75% to 3.35% |
| Indian Bank | ₹ 250 | 2.80% |
| UCO Bank | ₹ 250-₹ 1000 | 3.5% to 4.00% |
| Bank of India | ₹ 1000 | 2.75% |
| IDBI Bank | ₹ 2500-₹ 5000 | 3.00% to 3.5% |
| HDFC Bank | ₹ 2500-₹ 10,000 | 3.00% to 3.5% |
| ICICI Bank | ₹ 1000-₹ 10,000 | 3.00% to 3.5% |
Savings accounts are a lifesaver in times of need as they save up your money and also provide interest on it. Choosing the best savings account that resonates with your requirements is very important to have a financially stable life.
What is the Importance of Having a Savings Account?
A savings bank account offers a number of benefits to the account holder. Let us look at the importance of having a savings bank account:
Ease of Transactions: With the help of savings accounts, you no longer need to go to every person to get or make payments. You just need to visit your bank with the details of the beneficiary, and you can easily make a payment with it.
Ideal for Financial Planning: A savings account presents you with a clear picture of your finances which will help you to plan your future investments accordingly. Also, you can use a savings account to keep your money in a safe place.
Easy Debit Facility: With a savings account, you get access to the facility of a debit card. This card allows you to make purchases with the swipe of a card so that you don’t need to carry cash everywhere.