All the banks in India are monitored by the Reserve Bank of India (RBI). All the banks offer a savings account but they may differ in products depending on the services provided.
Individuals who are not happy with the service provided by your bank and are planning to open a new savings account, here are things to consider:
With offers remaining same with most of the banks, interest rates differ as it was deregulated by RBI. Banks such as Yes Bank will offer 6% per annum for balances exceeding Rs 3 lakhs.
While, Kotak Mahindra Bank is offering 6% p.a. Interest for balances above Rs 1 lakh and 5% interest on balances below Rs 1 lakh.
Other banks such as ICICI, HDFC and SBI the rate offered is at 4% per annum.
Many private sector banks have set higher amount as minimum balance requirement based on the type of savings account.
HDFC and ICICI Bank ask for a minimum Rs 5,000 to Rs 10,000, as minimum balance requirement to open and maintain savings bank account. While banks like SBI, Canara Bank ask you to maintain around Rs 1,000.
However, if an individual is not interested in maintaining the balance, they can open 'Basic Savings Bank Deposit Account' but the facility and services offers in such accounts are restricted.
The services and fees differ depending on the private and public sector banks. It is noticed that private sector banks offer good service and charge for the same. While at the public sector banks the fee is comparatively less, but, their service may sometimes be stressful.
Choose a bank which is near to your office or home as charges on transactions done in the home branch are less.
Number of ATMs
As per new rules, banks have reduced the free usage of ATMs, which means that using ATM for banking transactions more than stipulated times will be charged.
Banking apps are the easiest way to bank these days. Make sure your bank is having a user-friendly app and allows you to make easy bill payments, money transfer etc.
Check for the other services such as demat account, insurance options, locker facilities and investment advice.