Savings Account Features You Need to Know

In India, savings accounts are a popular financial instrument. They are not just a place to deposit money, they hold the key to financial stability and growth. But what makes them such a widely used financial product in today’s age?

Beyond simply holding funds, savings account features enable seamless transactions and even wealth protection. In this blog, we will explore the essential features of savings account that can elevate your financial journey.

Understanding Savings Accounts

Savings accounts are a type of financial product offered by numerous banks. An individual can open a savings account to keep their hard-earned money safe while enjoying the withdrawal facility. This product helps manage finances for handling emergencies, making purchases, saving for future goals, etc. 

Nowadays, banks and other financial institutions offer several variations of savings accounts, including basic savings accounts, women’s savings accounts, online savings accounts and premium accounts. They are interest-bearing accounts, indicating the account holders will receive interest based on their account balance.

What are the Features of a Savings Account?

Here is a list of characteristics of savings accounts that you must know before opening a savings account to manage your finances:

• Interest Rates and Returns

Generally, banks offer interest on savings accounts based on the balance maintained. So you can grow your money over time. However, the interest rate varies significantly based on various factors. They include the balance on your account, the financial institution, the type of savings account, etc. 

It is an important consideration when opening a savings bank account. The savings account interest rates usually range between 2% and 5% in India. 

• Seamless Fund Transfers

It is one of the top features of savings bank account. Savings bank account holders can easily make fund transfers from their account at the time of an emergency or when paying monthly bills. 

These days, several fund transfer options are available in the banking system. They include National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS), Immediate Payment Service (IMPS) and Unified Payments Interface (UPI).

• ATM Facility

By opening a savings account, you can avail the ATM facility. With the help of this facility, you can withdraw from your savings account through a debit card by visiting your nearest ATM.

Most banks have ATM shops spread across the country. However, if you fail to find one nearby and need cash on an urgent basis, you can use another bank’s ATM. 

• Net Banking and Mobile Banking

Most banks offer net banking and mobile banking facilities, making them prominent features of a savings account. This enhances convenience in transactions, where you log in to your account online to send or receive payments within minutes.

Moreover, you can use the bank’s dedicated mobile app to manage your finances conveniently from anywhere.

• Security

As far as security is concerned, savings accounts are one of the best investment modes in India. The banks and other financial institutions in India take strong safety measures to protect funds. 

In addition, banks use encryption to conduct online money transfers. They include one-time passwords (OTPs), two-factor authentication (2FA), and safe login methods. These features add several layers of protection to your account. 

Things to Keep in Mind When Choosing the Right Savings Account

After understanding what are the features of savings account, you must consider a few factors to choose the right one to fulfil your financial needs. Here are listed some important considerations that need to be kept in mind before opening a savings account:

• Interest Rate

For savings accounts, the interest rate typically ranges between 2% and 5%. However, some banks offer significantly higher interest rates for maintaining specific balance requirements. Usually, the rate of interest varies from bank to bank.

• Minimum Balance Requirement

Some banks ask to maintain a minimum balance, while others do not. So, you must check the minimum balance requirement before you apply to the bank. You can opt for a zero-balance savings account if it aligns with your financial requirements.

• Features of Debit Cards

The majority of banks offer debit cards with unique features, including discounts on purchases, complimentary movie tickets, etc. Hence, you can choose such banks or savings accounts that come with these offers and deals if required. 

• Additional Features

Every bank offers a list of features with a savings account, including a free cheque book, net and mobile banking, etc. So, look for the facilities and complete bank activities from the comfort of your home or workplace. 

The Final Thought

To most Indians, a savings account is a gateway to financial security and growth. By leveraging the features of savings account, you can better manage your finances, ensure seamless transactions, and even earn returns. 

So, why wait? Open a savings account with Torus Digital! Get 7.75% interest while opening a zero-balance savings account. Download the app today!