The Indian banking system has seen considerable change over the years. The banking network and its operations are now more inclusive, comprehensive, and effective. While the Reserve Bank of India is the supreme banking authority for issuing significant financial and economic policies, customers are served by several private and public-sector banks.
A Savings Account enables you to deposit money and earn interest on your balance while withdrawing the funds required. Additionally, it offers multiple features, making it a popular choice for saving and investing. The features differ between banks and specific account types. Here are a few to help you over the long run:
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Interest rates
Banks offer interest to depositors in exchange for keeping their funds with them. The amount you deposit determines the interest rate and gets affected by the RBI’s banking policies. You receive the interest monthly or quarterly on the remaining amount, enabling you to save more and generate emergency funds.
Minimum balance requirement
Many banks require you to maintain a minimum balance when you open Bank Account online. However, some accounts, do not have minimum balance requirements. Failure to maintain them, results in a penalty, which you need to pay to the bank. Therefore, ensure you check all the bank policies and terms before opening the account.
Withdrawal flexibility
Bank Accounts allow you to withdraw money from them at any time and from anywhere. However, there are limits on the frequency and number of withdrawals. You pay a fee for exceeding the limit or withdrawing from other bank ATMs. You also get a linked ATM-cum-Debit Card for in-person or online payments. You need to enter your credentials to withdraw money from the machine.
Passbook and chequebook facilities
All banks provide a passbook and a chequebook when you open a Savings Account. The passbook records every financial transaction and activity while the chequebook lets you easily withdraw or deposit funds. You can also track your passbook digitally through the Banking app.
No age bars
There is no age restriction on who can have an account. Different types of Savings Accounts have their eligibility requirements and benefits, suitable for people of all ages. Children over the age of 10, senior citizens, and salaried employees can all open them if they meet the required criteria.
Online Banking
Bank Accounts allow you to conduct transactions online. You can use features like Online Banking to perform various functions, including paying bills, sending and receiving money, investing in stocks, buying Insurance, and investing in other financial products. These facilities are available online, eliminating the need to physically visit the bank branch.
Conclusion
When choosing a bank, you should consider factors like interest rates, features, additional services offered, and benefits. Compare several options and carefully consider which one will best meet your requirements.