Which is the best savings account in India? Here's what studies suggest

There is nothing as important as our savings account when it comes to holding liquid funds and making day-to-day transactions. In the bid to provide you with the best savings account, banks offer a variety of services. While this elevates our banking experience as customers, it also leads to more service charges.

Therefore, the best savings account is not the one that only provides an industry-leading service suite. It is also the one that minimises your costs and is transparent. In the absence of transparency, unexpected and high savings account charges can result in an expensive banking experience. Let’s find out which is the best savings account for minimizing savings account fees and offering a customer-centric experience.

Savings Account fees you might be charged
 

While there may be dozens of ways a bank may charge you for a savings account in India, here are few common examples –

• Transactions -

Online transfers like IMPS, RTGS and NEFT are generally free up to a certain number or value of transactions every month. The same is also the case with cash transactions. However, charges may apply to all cash deposits, withdrawals and third-party cash transactions, or may be levied beyond a limit.

• Services -

SMS alert services, ECS return, stop payment, and rejection of standing instructions are examples of services that a customer may need against their savings account, and incur a cost in return. 

• Products/stationaries -

Chequebooks, duplicate statements, demand drafts and their cancellations, passbooks, balance certificates, photo attestation, signature attestation, etc., are physical or digital products that you may need from a bank from time to time. A flat or threshold-based fee may be applicable for these.

Complicating your expense planning
 

Suppose you need to request a stop payment of a cheque or a duplicate passbook. You may not have the time or habit of checking the list of bank charges every time you avail of these services. However, in your next bank statement, you will notice charges levied against some of these requests. Like this, there are various scenarios that may attract savings account charges. These are services that you request from your bank spontaneously. You might not even be aware that they can cost you money.

A study commissioned by the Moneylife Foundation, titled “Benchmarking Reasonableness of Service Charges by Banks in India,” noted a lack of consistency in the levy of bank charges by various Indian banks. The study tried to find out which bank offers the best savings account, and IDFC FIRST Bank was noted as the top bank among scheduled commercial banks in India with the lowest service charges. 

For the last 25 years, RBI has allowed banks to set their service charge structure while stressing the need to link them fairly to costs. The study highlighted the absence of reasonableness in these charges and pointed out the lack of transparency and accountability in this regard by several Indian banks.

How does IDFC FIRST Bank differ?
 

Which, then, is the best savings account for an average customer? It's the one that combines customer-centric services with transparency and ethical practices, such as the IDFC FIRST Bank Savings Account.

IDFC FIRST Bank has balanced the expectations of the RBI and industry watchers like Moneylife Foundation with the customers' needs by ironing out all the regular charges and maintaining transparency. What sets apart the IDFC FIRST Bank Savings Account as one of the best savings account in India is its zero charges on all commonly used services, such as –

• Online and cash transactions -

ATM transactions within the IDFC FIRST Bank network and other bank networks are unlimited and free. International ATM withdrawals and POS transactions are likewise free. There are no charges for insufficient balances on ATMs either. Cash deposits and withdrawals, including third-party cash transactions, are free of charge as well.

• Transfers -

Outward IMPS, RTGS, and NEFT transactions are free for any number of transactions.

• Banking issuances/reissues -

Chequebook re-issuance, demand draft/pay order issuance, duplicate passbook, duplicate statement, balance certificate, interest certificate, photo attestation, signature attestation, etc., are all available at zero cost with an IDFC FIRST Bank Savings Account.

• Other services and requests -

Various other services, such as SMS alerts, account closure, ECS return, standing instruction, address confirmation, etc., are also available at zero charges, making the IDFC FIRST Bank Savings Account one of the best savings account in India.

The best instant access savings account experience
 

IDFC FIRST Bank offers one of the best savings account that is fully digital, with instant access to all banking services through the mobile banking app. The cost waiver on all commonly used banking services provides a transparent banking experience and helps you get rid of perennial banking charges.

Choose IDFC FIRST Bank Savings Account today to explore one of the best savings account you can have in India and enjoy its exciting benefits today!