When it comes to comparing savings accounts, there is a wide selection of options available. But if you really want to manage your finances properly, think about opening a savings account that will best suit what you need financially.
If you want to learn about the different features and benefits, this guide will walk you through each type of savings account on offer in clear detail with advice on how to pick one suitable for yourself.
Types of Savings Accounts
Savings accounts come in various types, each designed to meet specific financial needs. The Regular Savings Account is the most common, catering to individuals who require basic banking services such as deposits, withdrawals, and ATM access. It is ideal for those seeking straightforward savings benefits. In contrast, the Zero Balance Savings Account offers similar features without the need for a minimum balance, making it suitable for individuals with irregular incomes.
The Women’s Savings Account is tailored specifically for women, providing unique benefits like shopping discounts and transaction perks, appealing to those looking for gender-specific advantages. Meanwhile, the Senior Citizen’s Savings Account focuses on older adults, offering additional benefits such as health-related perks and preferential rates on fixed deposits, catering to their specific financial concerns.
For families, the Family Savings Account allows multiple members to manage finances collectively under one account, promoting easier financial management. Lastly, the Salary Account, typically opened by employers for employees, facilitates salary distribution without requiring a minimum balance, making it a convenient option for wage management. Each account type serves distinct purposes and customer demographics, enhancing overall banking accessibility and efficiency.
Factors To Consider When Choosing A Savings Account
The Interest Rate
One of the most important gauges to judge upon while selecting a Savings Account is its interest rate. The interest rate on a Savings Account can differ depending on the type of account you have opted for; it is always advisable that one compare them. A slightly higher interest rate could mean a lot more savings down the line.
Minimum Cash Balance
Various banks have different minimum cash balance criteria. But, if you are not able to maintain that minimum balance, then the bank will charge a penalty. This, of course, depends on the type of account chosen as well as where (in which country/ branch) it is issued.
Accessibility
Online and mobile banking may be convenient, but there are still times when you need to go into a bank branch for certain transactions. Therefore, it only makes sense if you bank with a lending institution that has an extensive number of branches so that you can access the funds when required.
Service Charges and Fees
Before you go ahead and open a savings account, be sure to look out for charges that the bank may charge against you, especially on services such as SMS or E-mail alerts, duplicate ATM cards, additional checkbooks, etc. Be aware of such charges in advance to avoid surprises later.
Debit Card Offers
Banks provide various offers on their debit cards, such as cashback and insurance cover. On the other hand, certain banks levy an annual charge for these cards. Make sure to take into account all the benefits and their costs.
Additional Services
In some cases, banks are also providing additional services such as doorstep banking, i.e., collecting cash/cheques and delivering demand drafts to your home. If you feel these services are useful, think about this factor.
Conclusion
If you consider all the above-stated factors, you can easily find out which savings account is suited to your needs. Assess your banking requirements and opt for the one that complements your budget, as well as lifestyle.