Opening a Savings Account

7 Questions to Ask Before Opening a Savings Account

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As there are various banks that offer savings account, it can become confusing to select the best one. However, by asking a few important questions, you’ll be able to find out which is the right option for you.

In this article, we will discuss 7 important questions to ask before opening a savings account.

The first bank accounts that most people open is a savings account. This account allows customers to park their money. Furthermore, it provides returns on balance maintained. But due to the number of options available, it can become difficult to choose the right savings account. However, by asking a few questions, an individual can find the savings account that suits him/her.

Let’s take a look at the questions that you should ask before opening a savings account-

  • What’s My Savings Goal?

Understanding your savings goal can help you pick the right savings account. Some of the most common savings goals are- building an emergency fund, accumulating funds for retirement, etc. Once you know the goal, you can look for a savings account that is made to help achieve it.

  • What is the Interest Rate?

One of the most important benefits that savings accounts offer is the interest rate. You can earn interest on the balance that you maintain in the account. While you can find banks that offer higher interest rates, make sure you check the minimum balance requirements. This is because savings accounts that offer higher interest rates might have higher minimum balance requirements.

  • What is the Minimum Balance Requirement?

In case of some banks, you might have to maintain a minimum balance requirement in your savings account. This minimum balance requirement can be levied to keep the account open, avoid fees, or earn returns. Therefore, before opening a savings account, you should know how much money you will keep in the account. Based on this amount, you need to compare the minimum balance requirements of different accounts.

  • What are the Fees?

While a savings account allows you to park your money, you might have to pay some fees. Some of the fees that might be levied are- the monthly account maintenance fee, overdraft fees, excessive withdrawal fees, etc.

  • What are the Requirements for Opening a Savings Account?

Generally, opening a savings account is simple. You might have to fill a form and submit some documents to open an account. Furthermore, if a bank allows you to open bank account online, then it can become convenient for you to finish the process.

  • Are there any Additional Features?

Apart from enabling you to park your funds, you need to find out if your savings account offers you additional features. You should check if the bank provides you with digitised remote access. This is because online banking provides you with convenience.

  • Is the Customer Service Good?

You should read customer reviews to check if a bank has a good customer support team. In case you have any issues with your account, you will have to contact the customer service team. Thus, it becomes crucial for you to opt for a bank that offers great customer service.

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