6 Things to Consider Before Opening a Savings Account

A savings account is the easiest and the most versatile way to deposit your money in a financial institution. Each individual may have different purposes for having a savings account; building an egg nest for your future is one, maintaining a savings account for the convenience of online transactions is another. However, regardless of the expectation, it’s essential that everybody has at least one savings account and has in-depth knowledge about it. It could be overwhelming to choose what type of account you need or which financial institute to choose. Let’s break down what you need to know before opening a savings account.

Assess your current financial situation and the goals

What do you expect by opening a savings account? Savings accounts are best for emergency funds, managing monthly expenses, online transactions, etc. On the other hand, if you are looking forward to investing money in a financial institution for higher returns, savings accounts are not the best option. Learn about investing with fixed deposits here.

There are different types of savings accounts catering to different demographics and interests. You’ll need to know what the differences and unique benefits of each account type are to decide what suits you the most. Apart from the general savings account, there are two specialized savings accounts available at HNB Finance; Miyulasi, women’s savings account and Yalu, children’s savings account.

Look for better interest rates

Higher interest rates are not the only factor that ensures the benefits of your savings account, how the financial institution calculates interest does matter too. If your savings account is dedicated to monthly expenses its balance will fluctuate frequently since it involves a lot of transactions. So, it’s always better if the financial institution calculates interest on a daily basis.

HNB Finance offers the highest interest rates in the market, and the interest is calculated on the daily balance and credited monthly.

Minimum opening balance and minimum balance matter

You need to deposit a minimum balance when you open an account. Some financial institutes also require you to maintain a minimum balance in the savings account until, in case, you decide to close the account. These amounts vary based on the financial institution and what type of account you choose.

You’ll need only Rs. 500/- minimum balance to maintain the general savings account with us.

Easy access to your savings

Accessibility to branch counters and ATMs is another factor to consider. Does the financial institution you choose have enough coverage with branch counters and ATMs? Is the financial institution’s opening hours convenient for you? Unlike fixed deposits, easy access to your savings account is mandatory. Choosing a financial institution with a good branch and ATM network makes it easier for you to withdraw, deposit, fund transfer and get the other urgent things done quickly.

Know the charges

You’ll be charged for some services such as replacing a lost ATM card, printing statements, and so on. Some financial institutions limit the number of withdrawals from branch counters and charge for additional withdrawals. These charges might seem small and occasional, but being aware of them helps you to be in control of your finances.

Good customer service is key

You can’t predict what kind of troubles you might run into. For instance, what would you do if you accidentally deposited money into a wrong financial institution account? What is the immediate action you take if your debit or credit card got lost? Good customer service that’s readily available is utterly important in such urgent matters.

Not only that, but a customer service where you can get information about offers and changes of policies whenever you want, builds the rapport between the financial institution and you.

Get in touch with us to learn more and open a savings account with the least number of documents in no time.