To fulfil our several needs and wants, it is essential to have money. Along with a source of income, it is also necessary to save money. Saving money can not only help in meeting specific financial requirements but can also be helpful in during emergencies and unforeseen circumstances.

Earlier, one needed to store money in a locker or a safe place. With rapid advancements in technology and the widespread availability of the internet and smartphones, opening a savings account online has become effortless. With this account, one can safely store money in a bank and avail of several other benefits. However, there are some things an individual needs to consider and know before opening an account.

Interest rates

One of the main benefits of depositing money in an account is earning interest. Banks usually offer an account holder a fixed interest rate to keep money with the bank. The interest rates are typically low, around 3% to 4%. Before opening an account in a particular bank, it is important to see the interest rates that other banks are offering.

Senior citizens can avail of higher interest rates too. Interest rates can be a good passive income source but should not be the only factor to consider.

Minimum balance

Banks require account holders to maintain a certain amount of money. This is called the average minimum balance. Different banks and financial institutions have varying amounts to be held as a minimum balance. The minimum balance can be anywhere between zero to Rs. 5,000. Online bank account opening with zero balance allows you to open a bank account quickly and does not require a minimum balance to be maintained.

Banking facilities

While selecting a bank or financial institution, one of the things to consider is the availability and access to different banking facilities and services. Individuals should quickly deposit, withdraw, and transfer funds as required. Customer relationships and service are crucial in ensuring a smooth banking experience.

Credit facilities

In times of need, taking a loan can be vital financial aid. An individual should consider the credit facilities offered by the bank. Interest rates on loans, flexible payment terms and the different types of loans that a bank provides. Maintain a savings account with the same bank where you have an existing relationship is a plus.

Charges

There are several costs associated with banking. Banks may charge for lockers, depositing money, withdrawing money, ATM charges etc. There are fees for the issuance of credit and debit cards as well. An individual should carefully assess these costs before opening an account with a particular bank.