Opening a Savings Account is a prerequisite for a finer banking experience. You can park your money here and earn reasonable returns. A Savings Account allows you to manage and carry out daily transactions easily. The following FAQs will guide you further on them.

How to choose a suitable Savings Account?

It is a common financial product that most banks offer. The key features remain the same, but the services and benefits differ. Explore the market and understand the various offerings in the market. Opt for a bank with the highest interest rate Savings Account and higher benefits.

How to open a Savings Account?

The procedure is simple. You can either visit your nearest bank or complete it online. The latter method is preferable as it is hassle-free and time-saving. Log on to the banking portal with which you wish to open an account. Fill in your details and upload the necessary documents. Once the bank checks your details and documents, your account is accessible within the same day.

What is the minimum balance requirement?

The minimum balance requirement is the amount you should hold in your account always. The minimum balance requirement differs for each bank. The bank charges you a penalty fee if you fail to maintain them. Alternatively, you can also open a Zero-Balance Account. You need not maintain any balance here.

How is the average monthly balance calculated?

The bank considers the daily closing balance of each day during the month and divides it by the number of days to determine the average monthly balance. If the derived amount is less than the minimum balance requirement, you need to pay the insufficient balance penalty charges at the beginning of the following month. The penalty amount increases each time you default.

How are the interest gains on a Savings Account calculated?

The interest gains primarily depend on the interest rates offered. A higher interest rate translates to higher returns and vice–versa. Furthermore, a higher account balance attracts a higher interest rate. Hence, you should always maintain the prescribed bank balance. The account interest rate can range from 3% to 7%. The interest gains are calculated considering your monthly or average daily balance.

The interest gets credited to your account on a half-yearly basis or as determined by the bank. Understand these details before opening a Savings or Zero-Balance Account.