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.