Savings accounts are one of the most convenient ways to safeguard your funds without worrying about their loss or theft. All you need to do is approach a bank personally or apply online by filling out a form and providing the necessary documents to prove your personal information. The completion of the KYC (Know Your Customer) forms is also another important formality that needs to be completed when you apply for a bank account online or offline.
Mistakes to Avoid While Opening a Bank Account
In your rush of opening a saving account online, you may forget to consider some factors that are highly important for the way you manage your finances. Most of the time your savings account is the one through which you carry out the maximum transactions so it is advisable to look at the various terms and conditions associated with a savings account opening.
Here are some common mistakes made by people while applying for a bank account:
Not Checking the Interest Rates
An important consideration should be the interest rate being offered by a bank on your savings. While most banks offer similar rates, some may offer a little higher to lure customers. Not checking the interest rates applicable to your savings account may result in disappointment at a later stage. So, it is better to be informed before opening a bank account online or offline.
Not Checking the Minimum Cash Balance Requirement
Banks require to you maintain a minimum balance in your savings account during a month. In case your accounts balance falls below the mandated level, you may have to pay a penalty fee. So not checking the requirement for minimum balance may result in laxity on your part thereby leading to unnecessary penalties. So, before you apply for a bank account, do read the associated terms and conditions, and maintain your minimum balance accordingly.
Not Checking the Service and Other Charges
Not being educated about the various ancillary and other charges applicable can lead to disappointment. So, it is better to enquire about the service and other charges on services like SMS alerts, duplicate ATM cards, issuance of chequebook after the minimum free quota.
Not Checking the Branch Network
In this era of online transactions, people often open bank accounts without checking whether there is a branch nearby or not. However, you may need to visit the bank at one point or the other. So, it is better to look for a bank which has a good network of branches or a branch near your home.
Not Comparing Debit Card Details
Banks offer attractive deals like insurance coverage, discounts on purchases at specific vendors or easy access to health services. A common mistake is to not check about these offers. You should always check about the deals on debit cards and choose the one that benefits you or is in your interest.
Not Seeking Personalised Services
Many banks offer doorstep services like cash or cheque pickup or priority banking services for high-net-worth customers. Similarly, specialised services are available for senior citizens. So, do not forget to enquire about such services especially if you have a hectic works schedule or find it difficult to visit the bank personally.
To conclude, to open a best savings account, do check the various terms and conditions associated with it. Also, compare the terms of different banks and choose the one that suits you the most.
