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Are offers the right way to choose a bank account?

Are offers the right way to select a bank account? Read on to know how to choose a bank account.

Offers are like gifts for customers. Especially, when you open a bank account, you consider what offers are you getting such as online shopping benefits through debit card, receiving some cash backs on depositing a certain amount of money etc. Banks know it’s hard to get you to leave your old bank, especially when you’re comfortable with the accounts you have. But what better way to entice you than with a big cash bonus?

But opening a savings account is beyond offers as it encompasses some significant factors like interest rate, minimum balance requirement and online banking services.

Let’s get into the things that one should look for opening a bank account rather looking offers.

Minimum Balance Requirement

One of the key deciding factors when it comes to savings bank account is the minimum balance requirement. Some banks charge a specific penalty if the balance is less than the minimum requirement. This penalty varies from bank to bank and bank account to bank account. Keeping a minimum balance amount may not be feasible for many individuals. Hence, in this scenario you should look at the minimum balance requirement of the savings account. There are many zero balance accounts such as Kotak 811 where you don’t have to keep a minimum balance.   

Interest Rate

What is the interest rate offered by a bank? Every individual should have this question in his or her mind before opening a bank account. The deposit receives interest because the banks lend the deposited money to borrowers who pay interest on their loans. After paying for certain costs, banks pay interest on the savings deposit amount. Don’t you think it’s an easy way to add on to your savings while you work or play? Every bank has a different interest rate, and one must carefully assess the rates to get the best one.

Internet and Mobile Banking Facilities

Today, everything is about digital. People don’t like visiting banks for opening an account and other services. It gives rise to whether a bank provides secure online and mobile banking services. If you think it’s not entirely relevant, then you’re lagging in your technology upgradation. Because everybody out there is getting all the services at one touch. So, before you select a bank, check the internet and mobile facility. Also, know the different benefits of app banking such as opening investment account or book FD/RD. You can also request for a chequebook, transfer funds, making online payments, connect with chatbots for queries. One more feature that adds to this online facility is its scan and pay feature where you don’t even need a card to make payments.

Cash Withdrawal Limits

Every bank has a different policy regarding withdrawals. Some banks have a certain amount that can be withdrawn every month, and beyond that, there are penalty charges.

So, one must also investigate whether you need to withdraw money as and when required without holding on the limit. Save your money in a bank where cash withdrawal limits do not bind you, and you can use it whenever you need.

Auto Sweep in Facility

Auto-sweep is a facility provided by some banks which allows customers to sweep out funds above a pre-specified threshold from the savings account to a fixed deposit. It comes under various tenures and 12 months is the default option for such fixed deposits. There is also greater flexibility and liquidity as the funds flow back into your savings account when required.

So, for what are you waiting? Click here to compare the various savings accounts and select the best savings account.

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