Top Features Of Savings Account That You Should Know

Top Features Of Savings Account That You Should Know

Ashish
1 September 2022

While depositors have the choice to choose from three types of bank accounts, namely a savings account, fixed deposit account, or a current account, most of them prefer a savings account. One of the most popular sorts of bank accounts, a savings account is known for its convenience. Here, a depositor can deposit and save money, earn a specific interest rate on the deposit amount and withdraw it as and when required. Owing to its multiple lucrative features, it is considered a rational investment choice. Wondering why you should invest in the best saving account for individual

 

What Are Some Of The Best Characteristics Of A Savings Account?

The features that help to determine the best saving account for an individual are as follows:

 

  • Rate of interest 

When depositors opt to save their money with the banks, they’re offered an interest rate on the deposited amount. A financial institution pays an interest rate in exchange for the money deposited by a consumer. An interest rate paid by the bank to a depositor can vary according to the amount kept in her/his account. RBI’s banking policies regulate the percentage of interest rates provided by banks. The interest rates paid by banks can vary as per their terms and financial policies. 

 

  • Minimum balance 

Savings account holders should maintain and manage the minimum balance requirement specified by banks. However, a few savings bank accounts don’t require depositors to maintain a minimum balance. For example, in the case of zero savings or salary savings accounts, there’s no minimum balance required. An account holder has to pay a certain amount as a penalty if they have exceeded their withdrawal limit or their balance has gone below the specified minimum balance. 

 

  • Withdrawal facility

Users who choose to keep their money in a savings account instead of a current or fixed account will be allowed to withdraw a specific sum of money as and when required. However, the number of times you can withdraw money or the amount of money you’ll be able to withdraw will be determined by the bank. 

 

  • ATM facility 

Once you’ve opened a savings account successfully, you’ll be issued a debit card that is included in the welcome kit. A debit card allows you to withdraw money using a debit card from an ATM. A debit card will allow you to complete payments offline and online. You’ll have to enter your debit card credentials to proceed with the transaction. 

 

  • Cheque book and passbook facilities 

The bank you’ve opened a saving account with will equip you with a chequebook and a passbook in their welcome kit. A bank passbook helps you to keep an eye on your financial activities and transactions. On the other hand, a chequebook facilitates instant submission or withdrawal of money. 

 

  • Internet banking facility

When users open savings accounts with a bank, they can carry out online transactions easily. A saving account allows users to handle essential banking tasks like bill payments, stock market investments, selecting investment and insurance policies, using a chequebook, receiving and transferring money, and so forth. Users can download or bank’s online banking app or opt for net banking services to carry out more tasks. You can access these services online without visiting a bank branch. 

 

  • Account tenure

The tenure of a savings account is unlimited or continuous. So, the depositor can continue to use and maintain his/her account without any time bar. You will be allowed to keep your money in a bank’s savings account as long as you want. However, if the bank account is not continuously used for two to three years, it will be classified as inactive. 

 

Conclusion

Open a savings account today with a bank that offers lucrative interest rates on your deposits. Upon opening a savings account, you can transfer funds via offline and online modes and withdraw money

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