A complete guide to choosing the best savings account for your financial needs

A savings account can help you manage your finances more effectively, while also helping earn some interest income on your funds. In fact, the Indus Multiplier Max Savings Account by IndusInd Bank stands out with interest rates comparable to Fixed Deposit (FD) rates for balances above ₹20,000 – combining liquidity with the benefit of high returns.

However, with so many options available, people who wish to open their first savings account may get confused. To simplify your decision-making process, let’s explore the key features you should evaluate when choosing a savings account that aligns with your financial goals.

What is a savings account?

A savings account is a type of financial instrument that allows you to deposit funds into a bank account and earn interest on that amount. These types of accounts are designed for people who want to save money and earn interest on savings while also having easy access to their funds. Thus, the key purpose of a savings account is to offer individuals a safe place to store their funds while maintaining liquidity and earning interest. 

Factors to consider while choosing a savings account

Here are some of the key factors that you must consider to find the best savings account for your needs: 

Interest rates

Interest rates are one of the most important factors that you must consider when choosing a savings account. Different banks offer varying interest rates across distinct savings account offerings. Ideally, you should look for a savings account that offers high interest rates, especially if you plan to keep a considerable sum of money in your account. 

However, if you want to open an account to manage your day-to-day expenses and you do not plan to store funds in this account, you can also opt for a savings account with lower interest rates but better features like free ATM withdrawals, attractive debit card offers, etc. 

Minimum balance requirements

Many savings accounts have a minimum balance requirement. If your account balance drops below the minimum balance threshold, the bank may charge additional fees. If you are unsure about being able to maintain the necessary minimum balance, you can consider opening a zero-balance savings account. 

For instance, the IndusInd Bank Indus Delite Savings Account is a zero-balance savings account that comes with a host of other benefits. You can open this account online through a 100% digital process and enjoy a range of discounts and rewards on debit card spends. 

Brand reputation, reliability, and customer support

Some of the most crucial factors that should be considered when it comes to choosing the right savings account are the bank’s brand reputation, reliability, and customer support. Even if the bank offers the best savings interest rates and features but has poor customer support and cannot be relied upon, there is a high chance your funds could get stuck or frozen in case of any issues with the account. 

On the other hand, a highly reliable bank that offers dedicated support to resolve issues quickly can help get your account access back quickly in case of any errors or mistakes and keep your funds secure. 

If you want to open a bank account online with a reliable bank, consider opening the Indus Multiplier Max Savings Account with IndusInd Bank. This account requires minimal bank account opening documents, offers excellent customer support, and provides features like: 

• FD like interest rates on balances above ₹20,000 with the smart-sweep facility

• Instant online account opening with video KYC 

• An account number of your choice 

• Reward points that can be converted to cashback on debit card spends

• A large number of deals and offers related to travel and shopping exclusively linked to the savings account/debit card

Fees and charges

Before opening a savings account, make sure to understand all the fees and charges that the bank will levy on your account, such as SMS charges, ATM charges, maintenance fees, or any other charges. Understanding these types of hidden charges is essential to avoid surprise fees and maximise your savings in the long run.

Key takeaways

The first step in choosing the right savings account is to assess your needs. Consider your unique requirements and then compare the available savings account options based on the above factors to understand which account suits your needs the best. The right savings account can go a long way in helping you take control of your finances and grow your savings, so make sure you choose the best possible option.