Parameters to check before opening an Account in India
India is a country with a huge population that accounts for a large number of players in the banking sector and now there is a move to make India cashless, and the Indian banking sector is a boost with demonetization. Every citizen wants to open an account in public or private banks but a variety of factors such as high rate of interest the deposit, easy advance, customer services, and so on should be looked at before opening an account.
There are four types of accounts in India Banks. The foremost step is to understand your requirements and decide on the type of account you wish to open.
As far as saving account is concerned, you can consider the following points to decide which bank is best for you to open a Savings Account – Interest rate, Various facilities offered, What are minimum balance required in your account, Charges fees, and customer services. Ideally, you should look for a nearby branch providing good customer service and net banking with fewer minimum balance requirements.
Fixed Deposits Accounts
A fixed deposit (FD) is a financial instrument provided by banks that provides investors with a higher rate of interest than a regular savings account. The best bank to open FD will be the one that provides Maximum Interest for your deposit and provides information like Maturity amount, Interest Earned, Gain After Inflation easily.
Recurring Deposits Accounts
Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits. To open a recurring deposit account in any bank, it is essential to calculate interest rates offered by different banks. Best Bank to open RD will be the one who provides higher interest rates, no TDS on interest, 12 to 120 months tenure, premature closure.
A current account is a type of deposit account that caters to professionals and businessmen alike. The current account should have free fund transfers between all other accounts, free local collections through cheque and fund transfers as well as easy inter-city banking.
What should you look for in a bank?
1. It should have a good net banking facility
2. It should have good phone support.
3. It should not overcharge for its card facilities
4. It should have good value-added services (e.g bill pay, tax submit, etc)
5. The minimum balance required should be reasonable.
Nowadays, all the products and services offered by the bank are more or less similar. e.g. Debit card, Online Banking, Mobile banking, App banking, etc. The main idea is which sector you prefer public or a private sector bank. The public sector banks open with a lesser amount (250-1000). Even Prime Minister’s Jan Dhan Yojna accounts can be opened with ‘0’ balance. But the nature of service is better for private banks than public sector banks.
The Major Public Sector Banks are SBI, PNB, Bank of Baroda, Central Bank of India, Bank of India. But SBI is India’s largest bank and has a maximum number of branches and ATMs all over India. Whereas the best services are in private banks like ICICI, HDFC, AXIS, INDUS IND, Kotak, Yes Bank, etc.
Make yourself aware of the charges like debit/credit card, ATM, SMS, email, annual, monthly, etc before deciding in which bank you prefer to open an account.