Facts about Bank Accounts: A beginner’s guide
The most liquid and convenient Bank Account is a Savings Account. It develops the habit of saving and offers competitive interest rates upon your regular deposits. It is an ideal option for anyone who wishes to save and accumulate funds in one place. The procedure for opening such accounts is simple and basic. It is almost the same for all banks.
However, it depends on whether you open a Bank Account online or offline. Many banks have their portals and apps for convenience to open such accounts online. If you are new to the circle of Bank Accounts, understand these facts:
Types of accounts
There are different Bank Accounts for your perusal. You need to know which one you want based on your needs. You can opt for a regular account if your intention is to save and park your income. For instance, a Salary Account is ideal for getting your revenue credited each month automatically. There are also privileged accounts for senior citizens, women, minors, etc. These differ and have specialised features based on the respective bank's policy,
Services offered
These accounts are meant for more than deposits and withdrawals. With the advanced technology, there are other facilities you benefit from. Hence, check the services offered, ranging from Internet and Mobile Banking, balance sweeping, transfer options, etc. Each bank has its customised way of helping customers through specialised apps and helpline facilities.
Associated charges
This again differs for the online and offline account opening process. The primary reason is the lack of physical maintenance of online accounts, which makes them more attractive. You get lower charges levied in this type. However, it is best to check on your chosen bank's website before proceeding. The charges expected are cash transactions, Online Banking fees, non-maintenance of monthly balance penalty, etc.
Bank interest rates
Banks usually provide competitive Savings Account interest rates. Therefore, you need to compare before opting for the best deal. You may come across promotional interest rates that seem attractive. But make sure to check them thoroughly against the charges levied for account maintenance to get the actual value.
Minimum balance requirements
This aspect differs between different Bank Accounts and the area you belong to. Rural, urban, and semi-urban branches of the same bank can have different requirements. It also varies when you decide to open the account online or offline. Hence, check them before opening the account.