Facets that need consideration before you open a Savings Account

Savings are the saviours of the future and they should be kept with caution. To make them increase in value and amount a natural inclination drags us towards a savings account. It is a silent worker that keeps accumulating treasure while you are busy working for other countless responsibilities.

As a prerequisite to opening a savings account, few conditions present their importance. They demand your attention to ensure the occurrence of a correct decision. Have a look at the following points –

NO COMPULSION of the least opening amount

When it comes to gathering nest egg, freedom is the most critical factor. The options with the compulsory requirement of a minimum figure of money are a bit intimidating. It should be on your discretion whether you want to put an initial amount or not.

For a faster procedure, it is necessary not to have any boundaries of dos and don’ts on this aspect. Usually, online-only choices have no such requirements. Those who can manage to collect a starting sum of funds for the purpose can go for this. Otherwise, the general preference is for the ones with demand on the least opening balance.

BONUS PROMISE IS A SHORT-TERM PERK with no long-term benefit

Some offers give you the shimmering commitment of bonuses that give more significant returns through higher rates. The high price is always a concern for all. However, such things may not be long-term, and they may disappear after a small period. After that, you are left with the very demoralizing and tiny returns, which is a significant loss to your finances.

Clear all the doubts before taking the final decision on this aspect. Either you switch to some other option with maybe no promising bonuses but an essential high rate benefit. Still, if you want to go for it, change the account/provider when the bonus period is over.

GET CLEAR on the fee frenzy

Many providers apply fees and penalties on many things related to the account. When they all collect together, you have to pay a considerable amount. It is better to get clarification on the following questions.

• Is there any monthly fee?
• Is there any charge for taking advice from any person in a face-to-face meeting?
• Does the company refund money for the ATM transactions?
• Do you need to pay any fee after crossing a particular number of transactions through the account?

Be open and versatile in your questions to clear all the doubts. Forget not to read the fine prints in the ‘terms and conditions’ section. You really cannot be careless on this part, as this can cause the loss of a vast sum of your hard-earned income.

SAVINGS ACCOUNT SHOULD serve in your financial condition

Every person has different circumstances in finances, and it is necessary to know if a saving product is available in those conditions or not. For example, payment history leaves a significant impact on the possibilities of attaining any financial product.

The spots of flaws in the past financial behaviour can cause chaos. Take the case of County Court Judgement. Such situations need special treatment. For instance – A person in this condition cannot apply for any loan. He has to depend on the limited options like loans for ccj with no guarantor or very poor credit loans etc. Similarly, a savings provider to has some policies on varied factors like credit rating, income, etc. It may not be ready to offer the highest rate applicable to savings due to the CCJ mark.

Whatever is your situation in personal finances, make sure that the account is compatible. In the above example, the person can never want to avail of the alternative with a minimum balance requirement. With already so many debts, it can be challenging to arrange a deposit amount. The finance company, too, may act reluctant towards the applicant.

Should FINANCIAL INSTITUTION be INSURED?

Every penny of your savings is precious, and that should remain safe in every condition. Before you open the account, make sure that the finance company is insured. It is the guarantee of return of the money in case of an enormous economic turmoil in the country.

Ask for all the necessary proofs to stay confirmed about the insurance. Do not rely on the promises or commitments that say ‘we are insured’. Check things rationally as the legal matters can never be taken for granted. You give your lifelong savings to a company, and that is not a simple thing. With all the rights to explore even the most in-depth information about the institution, you should ask every fundamental question.

A MUST FACTOR is the timely notification feature

The bank account should be backed with the appropriate notification feature. Any new scheme, any change in the rate, any festive offer, should come to you through timely notifications. However, for that, you need to make sure that you correctly update your mobile number in the application form.

Also in case of any change in the contact details, inform immediately. It is not good to miss the lucrative offers that the finance company provides now and then.

Conclusion

The above points should be there in your mind during the mind-boggling tour on the utility of savings account. Act cautious, and you cannot get into trouble and finances are already complicated creatures that need a ‘handle with care’ attitude.