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5 Essential Factors To Consider Before Opening a Savings Account

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A savings account is where most people park their extra cash. It allows easy access and a monthly interest credit to grow your money with time. Top Indian banks offer mobile apps for quick and easy banking anywhere, anytime. You can also enjoy a ₹6 lakh purchase limit and ₹2 lakh daily withdrawal at ATMs at no extra charges. The online bank account opening is also complete paperwork free with video KYC.

IDFC FIRST Bank understands the importance of saving for the future. They offer plenty of amazing features and benefits for a wholesome financial experience. But you must consider a few vital factors beforehand. It will help you make an informed decision and choose the right savings bank account for yourself.

1.     Interest Rate

This decides the amount your savings is going to yield for you. Banks today are free to decide the rates after the deregulation of the interest rate regime by the RBI in 2011. So, look for the one that offers industry-best rates of up to 5%. It will be calculated on progressive balances in each interest rate slab as applicable. This helps you save better and reach your financial goals quickly. The top bank will also provide monthly credits to let you earn interest on interests.

2.     Service Fees

Online bank account opening with zero balance must be made possible with minimal and transparent expenses. The top bank will usually charge the following:

  • Cheque return – deposited = ₹50
  • Cheque return – issued = ₹250
  • International ATM or POS transaction = Free but a FOREX mark up to 2% of the transaction value will be applicable
  • Other bank ATM = ₹20 + tax for every cash withdrawal.

Transaction alerts, outstation cheque collection and debit card re-issuance must be free.

3.     Debit Card Offers

Pick a savings account that offers ample perks and benefits on their debit cards. The top bank usually provides 10% cashback on the first payment of up to ₹250. Free and unlimited ATM transactions and a cashback of ₹250 every month on BookMyShow.com are other premium deals. The signature card also ensures lost card liability protection of ₹50,000, personal accident insurance coverage of up to ₹2 lakh and 5 free transactions at other banks’ ATMs.

4.     Easy Eligibility

Too many norms are confusing and keep you from qualifying for a new account. Look for a savings account that allows Indian citizens, residents of India and foreign nationals staying in India and meeting GOI criteria. Make sure there are no other hidden requirements.

5.     Simple Documentation

This is a crucial factor to consider before an online bank account opening. You should not need anything except the Aadhar number and PAN number for the digital process. Any one of these are required you are opting for physical account opening:

  • Aadhaar card
  • Voter ID card
  • Passport
  • Passport-size photograph
  • Valid driving license with photo
  • Job card issued by NREGA

Make sure the bank asks for minimal documents from depositors. Otherwise arranging for multiple files can delay the process and make it a time-consuming affair.

Proper research on the potential account based on the above-discussed parameters are a must. Rest assured; you can open a savings account online without any hassle.

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