New Delhi. Choosing a bank account is no longer just a ‘branch nearby’ habit. Digital banking is changing rapidly and interest rate fluctuations directly impact your savings. Especially if you have several lakhs of rupees lying in your savings account, then it is very important to keep the money in the right bank and at the right place. Savings accounts are safe, but they are not always the right option for maintaining large balances.
First look at the strength of the bank
Before looking at interest rates or offers, check the stability of the bank. Big public sector or top private banks are considered more secure. Small or new banks offer higher interest, but first understand their financial health and regulatory record. Your main bank account should be in an institution where there is no question of security
Savings account is for access, not returns
The purpose of savings account is liquidity. Keep enough money in it to cover your expenses for 1-3 months. Keeping more amount than this gives very less returns because due to slab, conditions and method of calculation, the actual interest does not increase much.
Charges and facilities are equally important
Minimum balance, penalty, ATM limit, branch charges, all these gradually reduce the money. Many charges are waived in premium accounts, but the minimum balance is higher. Digital banking experience is also very important.
Why not keep a large balance in a savings account?
If you have Rs 10-50 lakh or more in your account, then you are losing a big opportunity for better returns. Savings accounts are not meant for long-term growth. Keep only that much money that can be used immediately in savings.
If you want stability then choose FD
FD rates are better than savings account. It offers safe, assured returns and principal protection. These are ideal for big expenses like home payment, school fees, taxes etc. Just remember to always open FD in a strong bank.
If you want a tax-efficient option then look for debt funds
For those who do not mind minor market fluctuations, liquid, ultra-short and corporate bond funds are good options. Partial withdrawal is easy in these. If you hold these funds for a long time, the tax indexation benefits further improve your returns.
