5 Common Mistakes While Opening a Savings Account and How to Avoid Them

A savings account is the simplest way to park your finances. Some of the leading banks offer interest on such accounts. You have the freedom to withdraw money whenever required to cater to emergencies or general expenses. The entire banking process with a savings account is hassle-free. You can make and receive payments, apply for a cheque book, and get a signature debit card with added perks.

But there are a few errors you might make while instant account opening. These can lead to delays or missing out on special offers. Having sound knowledge of the pitfalls can help your open a savings account with a secure footing.

1.      Providing Wrong Information

Bank account opening documents should be authentic and updated. Any copies must have the exact information as that of the original one. Often customers tend to offer dupes to get their application accepted and to speed up the process. But even a top-rated bank will be compelled to reject your form in case you are caught. This can lead to stress and delays. You might also have to go through every formality all over again.

Cross-check papers tomake sure all the data is true to your knowledge. Try not to provide forged signatures or income proofs. Having clean records will help you open an account and save time and energy.

2.      Inappropriate Savings Account

It is crucial to know the options available before you open a new bank account online. Or else customers are unable to make the most of the features to benefit from them. A reputed Indian bank will offer a corporate salary account, minor savings account, senior citizen savings account and women’s savings account. Learn about each one before applying.

3.      Non-Maintenance of Minimal Balance

The top bank requires their customer to maintain a minimum amount in their account. You will have to strictly ensure this right from the beginning. Otherwise, the customers will be charged a penalty per month. A hefty fine can hamper your savings goals. Check the balance requirements beforehand. It is usually not more than ₹25,000. Make sure you have sufficient funds before applying.

4.      Not Knowing the Administration Fees

Minimal and transparent fees are charged by the most reputed bank. Not knowing them beforehand can create confusion and cause delays in case the finances are not arranged. Have a clear idea of the expenses involved in cheque return – deposited, cheque return – issued, ATM transaction charge for minor accounts for other banks and POS transactions. Taxes are also applicable as per the government rules. These charges are subjected to periodic revision.

5.      Not Calculating the Interest

You must learn how to calculate interest on a savings account. Otherwise, it becomes difficult to plan your financial goals and the period for which you must invest. Understand how much you will be earning along with additional interests. Use the online calculating tool, adjust the account balance, and bank interest rate to get started.

Keep bank account opening documents like the Aadhaar card and PAN card handy. Follow the general instructions and take help from the customer service if required. Further, try to avoid the above mistakes to ensure a wonderful banking experience.