A savings account is the gateway to financial services. From mutual fund investments to insurance, you need a savings account to access every financial service or product a bank offers. Fortunately, banks have made it easy to open a savings account. With a few clicks on your smartphone, you can open a savings account with the bank. However, does that mean you should open a savings account anywhere? Not really.
Your savings account choice should be determined by several factors, especially how effectively you can save money through it.
How to save money effectively using a savings account?
The purpose of a savings account is to help save money. But not all accounts can help you do it effectively. Here are a few points to remember while choosing a savings account:
- Opt for a bank that offers a higher rate of interest
You must start by shortlisting the banks that provide the highest interest rates. The interest rate offered by a bank on a savings account counts the most when you consider an account holder’s overall savings. While other benefits also matter, a higher interest rate can help you get a leg up in your journey to save more through your savings account.
- Compare the interest rates of various banks
Several banks offer savings accounts, but their interest rates differ. Prepare a list of banks’ savings accounts, their interest rates, and the amount you can save with a bank’s savings account. IDFC FIRST Bank’s savings account interest calculator can help you in this mission. It computes the interest you earn with IDFC FIRST Bank’s savings accounts, compares it with your current bank, and calculates the difference to show you how much more you can save.
- Check whether the bank offers secure mobile and net banking services
A well-functioning mobile banking or net banking service is important for savings accounts. Banks offer various features on their mobile apps that help their customers better access their savings accounts. IDFC FIRST Bank provides features such as one-swipe pay and autopay through its mobile banking app, assisting users in making secure and fast payments on the go!
Which are the documents required for opening a bank account?
The documents required to open a savings account remain the same for most banks. Let us take IDFC FIRST Bank’s example and prepare a list of the documents needed:
For a digital bank account opening:
- Aadhaar card
- PAN (Permanent Account Number)
For a physical bank account opening:
- Passport-size photograph
- PAN card if you have one
- Any one document among Aadhaar card, passport, voter’s ID card, permanent and valid driver’s license with a photograph
- Job card issued by NREGA duly signed by an officer of the State Government
- Letter issued by the National Population Register containing details of name and address
Should we always opt for banks that offer the highest interest rates?
While high-interest rate is undoubtedly an important criterion, you must look for certain other features in your savings account to be able to save more, such as:
- Monthly interest credits
- Paperless account opening
- Free and unlimited ATM withdrawals
- Superior customer services
IDFC FIRST Bankfulfills all the above features and services and offers a premium banking experience on choosing one of its savings accountvariants. Click here to open a savings account with IDFC FIRST Bank.