Savings Account Features You Should Look for in a Bank

ByKajal Verma
Savings Account

Modern-day financial needs require modern-day solutions. Traditionally, people would open a savings account with a bank to keep their funds safe. Now, the situation has dramatically changed over the decades.

With customers’ changing needs, banks have brought changes in the services they offer. Today, the best bank to open an account in India is one that goes beyond the basic functions of depositing money in a savings account. 

Customers prefer a bank that offers a bouquet of features and benefits. Read on to learn the features you should look for before opening a savings account with a bank.

Top Features A Modern Day Savings Account Should Have

The universal feature that all bank savings accounts provide to customers is the security of the deposited money. Since bank savings accounts are insured by the DICGC (Deposit Insurance and Credit Guarantee Corporation) up to a limit of Rs. 1 Lakh (including the principal and interest amounts), customers need not worry about the safety of their money when they deposit it in a bank. 

However, you should not be restricted to only your money’s safety when looking for the best bank to open an account. Here are the other things you should consider:

  • High-interest Returns: The common notion is that savings accounts do not offer high-interest returns. It was true until recent times. Traditionally banks would offer low-interest returns on savings accounts. However, this has changed over the years. Modern-day banks are offering up to 6.50% interest returns on savings accounts. This amount adds a significant source of additional income if the deposit is reasonable for a long duration. Why settle for lower interest returns when you can earn inflation-beating returns on your money in a savings account?
  • No Maintenance Charge on Minimum Balance: Traditionally, customers must maintain a minimum balance in their savings accounts. However, with modern-day banking needs where customers use their savings account for frequent transactions, like online shopping and utility bill payments, there is a high chance that they end up using all the funds in the savings account. 

To avoid the unpleasant experience of paying the penalty on a low account balance, customers opt for a zero-balance savings account, which gives the freedom to exhaust the entire account balance without putting a penalty on the account.

  • Easy Transactions: Savings account holders perform several transactions using their accounts. They may use the savings account to make online shopping payments, utility bills like electricity, gas, and water, and UPI transactions via both offline and online modes. Ensure that the bank smoothly provides these services and has the required customer support system to allow these services and resolve their service issues.
  • Paperless Banking: Earlier opening and operating a bank account requires lengthy paperwork from the customer. With changing times, the best bank to open an account in India is one that allows paperless account opening. Popular banks allow customers to open a savings account simply by visiting their websites or downloading their mobile applications. You can submit a digital copy of your documents and get an e-KYC (Know Your Customer) done for quick verification. All this makes banking easy and mobile for customers.
  • Option to make investments: A bank savings account is no more a platform only to stack cash. Customers use the bank savings account to make various investments to compound their returns on safely kept money. You may invest in a Systematic Investment Plan, a Fixed Deposit scheme, or a Recurring Deposit using your savings account. 

People who want to try their luck in the stock market can link their savings accounts to their Demat and Trading accounts and enjoy seamless funds transfer for their trading activities. You can also use savings accounts to receive monetary benefits provided by the government or to receive your salary.

Make sure the bank charges you a reasonable fee for the facilities and services it offers you on a savings account. Opt for a bank with a wide network of branches and ATMs and added features like doorstep banking.

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