Choosing a bank for opening your saving or current account will not be a difficult task if you know your requirements. Here is a checklist that everyone should consider before opening a saving or current account to ensure that you are getting most out of it.
Choose a Bank for opening your account
Before choosing a bank, you should look at several other banks to know what they offer. If you travel a lot or require to access money from all other parts of India then we suggest you to go for a big private or nationalize bank like SBI, PNB, ICICI, HDFC or Axis as they have presence all over India. If you don’t want these facilities then better stick to a nationalized bank nearer to your locality as they do not charge much like these private players.
Types of Account
Types of account depend on how frequently you are using your ATM card, checks, credit card and net-banking as by default all other basic facilities will be available to you irrespective of the account type you have chosen.
Before deciding the type of account, you have to make a list of facilities that you want to avail. If you do not transact much on credit card or checks then it’s better to open your account with the lowest minimum amount.
How much balance you can maintain
Where ever you open your account, the bank will fix a minimum balance limit on your account which you are required to maintain either monthly or quarterly. You can open account in a nationalized banks with minimum balance of Rs. 1, 000 where as in case of private banks it will be in the range of Rs.5000 to 25, 000.
Based on minimum balance, additional features like check book, credit cards will be offered to you. If you do not maintain this balance then penalty will be charged on you. Before opening an account you must decide the minimum balance that you can maintain with them. If you can’t afford to have extra money sitting around in your account to qualify for certain facilities then you can consider other options. You can also try for nationalized banks as their minimum balance requirement is very less compare to private players.
Location of ATMs and branch office is the most important part you must consider before opening your account. ATM or debit card allow you to withdraw cash from ATM machine instead of visiting the bank’s branch office.
If you require ATM facilities all over the country then it’s better to consider a bank which has more presence in India.
In India, you can make 5 withdrawals in a month from other bank’s ATM irrespective of having an account with them.
Your bank will charge you beyond this limit for withdrawal. If your bank does not have much ATMs in your locality or across the country then consider these charges before opening your account.
After opening your account, you may be required a fixed deposit account or credit card or loan. If you have that in your priority list then make sure that your bank offers you these facilities at the most convenient rate compare to others.
As personal loan, car loan, credit cards and others are decided based on your transactions with the bank, we suggest you to talk to your bank’s representative on this before opening your account.
Having accounts in more than one bank will help you in managing your money better and you can also avail different benefits that each such bank offers.