The oldest and most traditional account in the banking sector is a savings account, a regular one. It is the most basic account in every bank or institution.
When any child steps up in banking they always start up with a savings account. While entering the world of money management and personal finance, a savings account is your first step.
As it is so simple and common, you always jump up into a savings account without getting adequate knowledge and confidence of knowing all about an SB Account.
But it is indeed a big mistake. So here are a few of the things which you need to look for if you want a good savings account.
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Things to Look For in a Good Savings Account
A good savings account should have fewer or zero fees
The intention of investing in a savings account is to keep your money safe until you find a need for it.
It’s the best option for your six-month emergency fund. But several banks try to behave as if it is a ‘piggy bank‘.
They charge fees from their customers for withdrawal, maintenance, activity, inactivity and several other fees.
They just need the option to take some of your savings away from you.
You also think that it is right and accept this fact and pay up those fees which actually take away some of your savings from you.
Don’t accept this thing. There are several banks which are honoured to keep you as a client.
They won’t charge these unnecessary fees from you. Transfer your savings to this type of financial institution or bank.
Read – How Much Money Should You Save?
Account should be free from withdrawal limits
There are such banks which put up restrictions on the number of withdrawals you can make per month.
These banks limit your free cash withdrawal limit to four times a month. If you have frequent withdrawals per month, you should better have a checking account.
Thus before opening your account check out if there are any of these provisions in the bank see if you are comfortable or not and then decide to open your savings account in that bank.
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Backed by a strong bank ( Prefer Govt & National Banks)
Before some time there was a great situation of failure of banks. And when this situation arises, it creates great trouble for the depositors of the bank.
The trustworthy deposit their funds and savings into the bank and if it doesn’t work they face a great loss and a complicated situation.
It is not a good idea to deposit your money in such a bank or open up a savings account in such a bank which is not safe or does not show a reliable balance sheet.
Thus always open up an account in a bank which has shown a good trend of profit in past years and has a profitable balance sheet.
Those banks which have a strong backup and guarantee to have your money back in tough times then only open up a savings account in that bank.
Read – High-Interest Fixed Deposit Options |
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