Maximising your savings: How to choose the best savings accounts in the industry

There is a wide range of public and private sector banks operating in India, offering a suite of banking solutions today.

But do you know which is the best bank for a savings account or how to choose the best one?

From compounding interest to high accessibility, there are several salient factors you must keep in mind before choosing the best bank for a savings account. Read on to know what these are.

Choosing the best bank for savings account - 6 Key factors to consider
 

● Interest rates
 

It is important to know the savings account interest rate before finalising one. Usually, the interest rate starts at 3%, but some banks like IDFC FIRST Bank offer high interest of up to 7% p.a. and monthly interest credits in your account too!

Compare the savings account interest rate and choose the bank offering the highest interest rates for maximum returns.

Besides the interest rate, check the frequency of interest payout. Most banks credit the interest to your savings account quarterly, while some banks provide monthly credits. Monthly credits work in your favour as it helps grow your money faster and also when you want to supplement your monthly income or need a regular stream of inflows.

● Fees and charges
 

Almost every savings bank account carries certain fees and charges for all account holders. A few common charges levied by banks include the following - 

• Money transfer charges
• Non-maintenance of the average monthly balance
• Issuance of additional chequebooks
• Issuance of duplicate bank statements or passbook
• Charges for demand drafts
• Cheque return charges
• Standing Instruction charges, etc.

These charges incur additional expenses whenever you place a service request on your account. Thus, it is feasible to choose a bank which has a minimal charge structure to minimise your expenses. For instance, IDFC FIRST Bank offers Zero Fee Banking on Rs 10,000 Average Monthly Balance (AMB) Savings Account and higher account variants, subject to maintenance of AMB in the account.

Also read – Zero fee banking: The next big thing in savings accounts

● Savings account balance requirement
 

The minimum balance requirement is the average amount of money you must maintain in your savings account. It can be monthly or quarterly. If your average balance falls below the minimum limit, you incur charges.

You must check the minimum balance requirement when comparing banks and their savings accounts. See the benefits being offered vis-à-vis the AMB required. 

It's better to choose the best bank for a savings account that offers additional benefits at the same level of AMB requirement. This would give you the best out of your savings account.

● Features and benefits
 

Today's savings accounts come with a host of features for a more rewarding banking experience. Some of the features include the following –

• Debit card with cashbacks and discounts
• Higher debit card limits
• Debit card reward program
• The flexibility of sweeping excess balance to a fixed deposit
• Complimentary insurance coverage, etc.

Compare the features and choose the bank with the most rewarding savings account.

● Accessibility
 

Accessibility means the ease of opening and maintaining a savings account. While the process opening bank account online has become easy, it pays to understand whether the banking interface offers easy navigation. 

Besides this, an accessible savings account would be one which –

• Can be maintained online
• Can be serviced online
• Allows a seamless net banking process
• Offers a wide network of ATMs
• Customer service

From resolving queries to reconciling the bank statement, banks must have excellent customer service to ease the woes of all customers. A good customer service department is important for -

• Helping customers seek redressal for their grievances
• Clearing doubts about bank's products
• Helping customers understand the terms and conditions associated with the different products, etc.

Moreover, the customer service department is like the face of the bank. It allows customers to approach the bank for their needs. Banks with exceptional customer service solutions are often the preferred ones for a savings bank account for most customers.

Also read - Savings account charges you didn’t know

IDFC FIRST Bank Savings Account - Ticking the right boxes
 

IDFC FIRST Bank Savings Account ticks all the right boxes and offers some of the best benefits. With IDFC FIRST Bank Savings Account, you can get -

• High-interest rates of up to 7% per annum
• Minimal charges
• Different types of accounts per your needs
• Monthly interest credit
• Free withdrawals from ATMs
• Complimentary insurance coverage and more

Moreover, there are different types of savings accounts, like Senior Citizen Savings Accounts, Minor's Savings Accounts, etc. to cater to your different needs.

So, choose the best bank for savings accounts for a rewarding experience.

Disclaimer

*IDFC FIRST Bank offers Zero Fee Banking on Rs 10,000 Average Monthly Balance (AMB) Savings Account and higher account variants, subject to maintenance of AMB in the account.

These services are being offered free in good faith, and in case of abuse, the bank reserves the right to charge fees as per market norms. All rights reserved.

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.