Tips on how to open a savings account

Are you sure you have the right bank to park your money? A savings account is a conservative investment custom that aids to stash up your additional funds safely with a bank of your choice.

If you are new to the world of banking and wondering how to open a savings account we assure you that it isn’t all that difficult and it doesn’t take too long to have one and it has no risks. But it is important to go in for the best banks offering best saving account deals like no monthly fee, minimum balance or a minimum opening deposit.

Accounts that offer a long-term, fundamental money management tool that can help you meet your financial needs and moreover it allows you the opportunity to put away cash, in case you have an emergency.

Getting started with opening a savings bank account is the first step towards financial independence and security. All you need to open a savings account is some motivation to save and of course, some pocket change. Check out these tips on how to open a savings account before you finally zero in on to one.

1. Identify saving goals: People have different priorities at different times. So, get clarity as to why you need to save money. Example - Savings for residential accommodation or to replace an old appliance require a high-yielding account that saves more money in a shorter period.

2 Move over big banks: All banks don’t have the same competitive rates. Small banks offering online facility is a good idea. Such banks can pay much higher than the ‘big banks’ in your vicinity.

3. Opt for best rates: Online-only accounts may give higher interest rates than traditional banks. But check if these banks allow easy access to your very own money too.

4. Check transaction charges: It is important to read the fine print. Most banks charge an extra sum for transactions or services. These charges could be for issuing a duplicate passbook, regeneration of a debit card PIN, SMS alerts, etc.

5. Open another account: People with multiple saving goals opt for multiple saving accounts. This also comes handy to avoid the risk of exceeding the insurance limit, in case of an emergency and the multiple perks that come with it.

Well, when most banks lure people with ‘giveaway traps’ like bonuses, diaries, calendars, free lunches or gift cards while opening a savings account, our suggestions on why and how to open a savings account are especially targeted for the benefit of our readers.

Log on to https://savingaccount.in/ for more. 

Put your online savings account on automatic mode

Saving money may not be your cup of tea, but that doesn’t mean you can’t get ahead in the savings game. In fact, the trick is to put your online savings account on automate mode and the money will show up in the right places without you having to do a thing or remember to do anything at all.

When savings are on automatic mode, there's less likelihood that you'll spend it on unnecessary purchases. Once an automatic savings deposits become a habit, you may find you don't miss the money at all.

Log on to https://savingaccount.in/ to check out the benefits of automating your account if you keep on paying late fees all the time, you can’t save wealth. In this article, we get you some tips on how to automate your savings and we tell you why it's a useful tool for managing your money.

But before that, let us first understand the functioning of an automatic savings plan. All it requires you to do is to schedule a recurring deposit from your checking account into a linked savings account. The frequency of deposit occurs purely on your personal preference. Once you get into the groove, you’ll find it easier to adjust your spending habits to accommodate for this expense and contribute largely to your savings goal.

So, if you're ready to amplify your savings efforts then there are several ways that automate your account. And it is you who decides how aggressive you want to be with your savings. If you already have a bank account, you just need to activate the automatic deposit for your online savings account.  You can start with small amounts and gradually increase as time goes by.  Also, the automatic mode is flexible and you could reset the amount if you get an out of turn extra incentive or a raise at work.

Secondly, try setting up automatic utility bills and credit card payments for missing a credit card payment could show up in your credit report up to seven years. Hence, it is better to automate your minimum payments. In fact, it would be a good idea to put everything you can on a credit card to maximise your rewards and make sure to pay off your credit cards in full every month to avoid paying interests.

Once these basics are taken care of, you could concentrate on growing your wealth and save for an emergency, vacation, wedding or travel. However, you just need to be careful not to over-automate and overdraft your online savings account. The penalty fees can cost your dearly.

Finally, don’t forget to keep tabs on your running balance and avoid the temptation to ‘cash out’ before you reach your bigger goals. Also, checking your growing finances can be really satiating.