What are the do's and don'ts of opening a new Savings Account?

Opening a Savings Account is important for your financial future. To make the most of your Savings Account, you must learn the do's and don'ts. Choose the right account type and understand interest rates to manage your money wisely.

Do's

1. Check interest rates: Interest rates aid the growth of your savings. Higher interest rates mean your money grows faster, so seek out banks that offer competitive rates. It's wise to understand how interest is calculated and compounded. Banks offer daily, monthly or quarterly compounding, which can affect your overall returns.

2. Evaluate fees and charges: Understanding the fee structure of a Savings Account is important. Some accounts come with maintenance fees, ATM withdrawal charges and other hidden costs. Opt for an account with minimal fees to maximise your savings. Be sure to read the fine print to avoid unexpected charges and look for banks that offer fee waivers or minimal fees for certain accounts.

3. Consider e-banking facilities: Ensure the bank offers robust online and mobile banking facilities. Check for features like mobile deposits, online bill payments and easy transfer options. A good digital platform can save you time and make managing your account hassle-free.

4. Minimum balance requirements: Many Savings Accounts have a minimum balance requirement. Choose an account that matches your ability to maintain the required balance to avoid penalties. Accounts with lower minimum balance requirements can be beneficial if you're just starting to save.

Don'ts

1. Don't ignore terms and conditions: Read the terms and conditions before opening a Savings Account. Overlooking these details can lead to unexpected hassles. Make sure you understand the policies on fees, interest rates and account usage. This helps you avoid any surprises that could disrupt your savings plans.

2. Don't have multiple accounts: Opening multiple Savings Accounts can be cumbersome and difficult to manage. Stick to one or two accounts that meet your needs effectively. Having too many accounts can spread your savings thin and make it harder to meet minimum balance requirements, resulting in unnecessary fees.

3. Don't overlook account accessibility: Ensure the bank has sufficient branches in your vicinity. Accessibility is crucial for managing your finances efficiently. Also, consider the bank’s ATM network and its affiliations, which can save you from incurring additional withdrawal fees.

4. Disregard security features: Choose a bank that prioritises the security of your funds. Features like two-factor authentication, fraud detection mechanisms, and secure online banking protocols are vital for safeguarding your savings. Look for banks with a strong track record in security and customer protection.

Also Read: Top 9 benefits of having a Savings Account

Wrapping up

By researching available options, checking interest rates and considering digital banking facilities, and not ignoring terms and conditions or overlooking account accessibility, you can make informed decisions to grow your savings.

For a seamless banking experience, open an Axis Bank Easy Access Digital Savings Account. Enjoy features like an instant virtual Debit Card with 1% cashback on online spends, video-based KYC for quick and paperless account activation within 60 minutes, and exclusive offers such as 10% cashback on Flipkart and Amazon via GrabDeals.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.