6 Savings Account Charges To Consider Before Opening A Savings Account

A savings account not just inculcates a saving habit but is also useful for emergency purposes. However, many banks have limitations on the number of withdrawals. The volume of transactions made on the account comes with a fee. These charges vary from bank to bank. Sometimes, they vary depending on the type of account as well.

You should be aware of the mentioned charges before you open a savings account:

• Non-maintenance of balance: This is one of the most common penalties that banks levy. You receive interest depending on the minimum balance you maintain. These charges are usually minimal. For a regular savings account, the fees are anywhere between INR 100 to INR 350 per month. On the other hand, the premium account has higher charges. It can go up to INR 600 per month. So, carefully consider these charges before choosing the savings account.

• Cash transaction charges: Every bank allows only limited cash transaction. If you cross that limit, you have to pay the penalty. Most banks allow only five free cash transaction per month. Beyond that, you have to pay the necessary costs. Some banks have also placed caps on the value of the cash transaction per month. Premium accounts involve a higher limit on a cash

• Cheque book fee: Although online transactions are trending now, some places still accept only cheque as a means of finance. A standard cheque book, which banks offer for free at the beginning, contain 20-25 cheques. If you order a new one, you have to pay a minimal amount. If you have premium savings account with a high average balance, you need not worry about cheque book issuance charges.

• Debit card costs: When you open a bank account, you are given a welcome kit along that includes a debit card. So, banks levy issuance and maintenance charges as well for the same. Sometimes the costs change depending on the services the banks offer. Certain premium accounts provide free regular debit cards.

• NEFT & RTGS charges: The two most preferred mode of transactions in India are NEFT and RTGS. NEFT has no lower limit on fund transfer whereas RTGS has a limit of INR 2 lakh per transaction. However, the movement of funds is faster under RTGS and gets done real time, on an account to account basis. Banks have specific charges in place regarding NEFT and RTGS. Some banks waive off the costs for premium accounts.

• Cheque return fee: If the cheque issued bounces back, the concerned bank levies return charges. The return cheque charges will be higher than the ones released by the third party.

Before you open a savings account through app, remember these additional charges.

5 Reasons a Banking App Is Preferred

Mobile and internet banking is becoming popular around the world. As the number of smart-phone users increases, more and more people prefer using apps for many reasons. Using a banking app to carry out financial transactions is now a necessity rather than a luxury. Moreover, as customers become more tech-savvy their expectations become higher. Banks which cannot keep up to their customers’ expectations usually lose out over competitors. Digitalisation has revolutionised financial technology and the best banks make the most of what technology has to offer. Here are some reasons why using an app is preferred over other options:

Easy to Use: The primary reason for customers to switch from traditional banking processes to using apps is, ease. An app provides a more engaging and seamless interaction between the customer and the bank. With a simple swipe or a tap, you can make bill payments, transfer funds, apply for products and make investments. No longer do you have to wait in long queues to open an account, an app facilitates instant bank account opening.

Accessible: There may be some customers who still prefer visiting a physical bank branch. There are, however, millions who expect 24/7 services. With the use of internet, the world has become smaller and financial transactions have become more complex. With differing time-zones and demographics, people cannot afford to wait for regular banking hours to begin. With a banking app, millions of customers can carry out banking transactions at any time and from anywhere.

Better Mobility: A few decades ago, customers who travelled frequently had to change their bank accounts based on the location. Now, with an app, your bank moves with you. No longer is there a need for closing and opening accounts, you can simply access your account with an app.

Paperless Transactions: Using an app does away with the need to generate endless and unending piles of paperwork. Traditional banking practices involve plenty of documentation for any process. Which also means clutter and inventory to deal with. You can now carry out any banking transaction, even open a paperless saving account!

Real-Time Transactions: Transactions through a banking app occur instantly. Be it checking your account balance, or more complex transactions like opening fixed deposits, all these take a few minutes.
Customers expect information on their finger-tips, be it computers, mobiles or any other smart device, information needs to be immediate. To keep up, banks need to continuously ramp-up their technology.