Banking has transformed like never before. The unbanked are getting banking services, through the government's Jan Dhan Yojana, while those that have banking accounts are seeing a digital revolution.
With a plethora of choices, the question now remains: Which is the best bank to open a savings account? All the banks offer a savings account but differ in products depending on the services provided. As the bank's operating cost depends on the service availed.
If you are not happy with the service provided by your bank and are planning to open a new savings account, here are things to consider:
It is better to choose a bank which is near to your location as charges on transactions done in the home branch are less.
Last year, banks have reduced the free usage of ATM, means using ATM for banking transactions more than stipulated times will be charged.
Also, using other banks ATM for transactions will cost you more. Some banks like Yes Bank, have no restrictions on ATM withdrawals. This means you can withdraw from any bank's ATM and any number of times.
3) Average Balance Requirement
Individuals need to maintain an average monthly or quarterly balance as mentioned by the bank. Average balance also depends on the type of account you hold.
However, if an individual is not interested in maintenance the balance, they can open 'Basic Savings Bank Deposit Account' but the facility and services offers in such accounts are restricted.
Also, the minimum balance required in government banks is much lower. In the top city the balance required is Rs 1000, while in the case of private sector banks, the minimum balance required is Rs 10,000.
4) Online Banking
These days almost all the banks offer online banking facility for free. Individuals should see whether the bank is tech friendly and are upgrading their features and services along with competitors.
Banking apps are latest in the market. Make sure your bank is having a user-friendly app and allows you to make easy bill payments.
6) Interest Rates
Interest rates which bank provide plays are very important factor while availing loan or opening a bank deposits. Some banks offer higher interest rate on saving account balances. For example, Yes Bank, IndusInd Bank and RBL offer interest rates above 4 per cent, which most of the other banks offer. So, look for interest rates.
7) Branch Availability
A number of branches of the bank matter when you prefer walking to the bank for transactions.
8) Services and Fees
The services and product fees also differ depending on the private and public sector banks. It is observed that private sector banks offer good service and charge for the same. While, public sector banks fees comparatively less, but, their service may sometimes leave a lot to be desired.
Choose the bank which is suitable to you and which fulfills your criteria. Choosing the bank based on the popularity may not help in the long run. It also depends on the fees and service you are looking from the bank.