24 April 2024 | By INDIE
A good savings account can boost your savings and provide seamless banking experience. Here are the top 6 factors you should consider while choosing the best savings account.
Choosing the best savings account is an important financial decision to be able to grow your wealth and get the most out of your savings. In today’s world, there are many options available but it’s important to gauge the pros and cons of these options before opting for the most suitable savings account for your needs.
A savings account offers a range of returns on the funds deposited in the account. This is a crucial indicator when choosing a savings account as the range can vary from as low as 3% p.a. to as high as 6.75% p.a. For example, if you earn 3% on your savings of 30 lacs – you would end up earning about Rs. 90,000 in a year whereas if you were earning 6.75% interest on this amount, your savings will be more than double at Rs. 202,500. Therefore, do check the savings interest rate for the bank account that you choose before applying for the same.
Another important factor in choosing a bank account is to check if the savings account gives you Auto-Sweep FD and Linked FD. How this works is very interesting, as you can seamlessly start earning a higher interest rate just by enabling the auto-sweep FD feature. An auto-sweep FD enables you to automatically convert surplus funds in your bank account into FD (above a particular threshold as low as Rs. 20,000-25,000). This will help you make the most of your savings. Another important feature to check is if your bank gives you a Linked FD feature – This linked FD feature automatically allows you to pay with FD if the bank account balance goes low. For example, if you have a pending payment of Rs. 30 lacs but the account balance is 20 lacs while another 20 lacs is parked in FD. A linked FD feature will seamlessly allow you to make payments with the FD.
A lot of banks also levy charges in case the account balance goes below a certain threshold. If you would like to opt for a zero-balance account, then please check out if there are any charges for doing so. While there are many zero-balance accounts it should be correlated with the benefits being provided by the bank that gives you a zero-balance account vs a bank that levies some charges in case the minimum balance requirement is not met.
Another factor is to check if there are any fees or charges levied by the bank in common services such as funds transfer across NEFT, RTGS, IMPS, what are the charges for ATM withdrawals, debit cards, etc.
Given the boom of digital, most banks don't need you to visit the branch while opening the bank account and a lot of savings accounts can now be opened through an App within minutes by providing basic KYC formalities and VKYC with minimal documentation. If time is a factor, then please do your research before opting for an online savings account.
This is where you can earn a lot if your savings account offers an attractive rewards program that’s relevant and transparent. Check out the rewards that the bank gives you and if you can earn rewards on the brands, you regularly shop at. Also, check on the debit card offers – whether you get zero markup on forex, complimentary lounge access at the airport, or offers/movie tickets based on your requirements.
Here’s one savings account that gives you the most relevant benefits – INDIE Savings Account. INDIE savings account is by IndusInd Bank and offers the trust of this 30-year+ old legacy brand, DICGC insurance on deposits, access to 2500+ branches and best-in-class interest rates. INDIE by IndusInd Bank already has 6 million+ downloads, 1.2 million+ customers and gives you:
1. Up to 7.75% interest p.a. on FD with Auto-Sweep and Linked FD features
2. Up to 6.75% interest p.a. on Savings
3. Up to 3% rewards on the brands of your choice
4. You can choose the INDIE Megastar account with an initial funding of Rs. 50,000 and enjoy 0% forex markup, complimentary lounge access at the airports, 1+1 movie tickets and a lot more. A megastar account is also entitled to a free VISA signature debit card.
5. Zero account maintenance charges
6. Zero charges on commonly used banking services such as Funds transfer – IMPS, NEFT, RTGS
So, wait no more! Download INDIE by IndusInd Bank and open your savings account.
