Here at the Financial Wit, we are still on a journey to help you choose the wright savings account the best caters to your needs. In Part I of this series we established what savings accounts are, the pivotal role they play in your life and can potentially play in your future. In Part II we outlined the various types of savings accounts availed by various financial institutions to cater to the dynamic needs of their customers. In Part III, we will delve into the key factors that you should consider before choosing and ultimately opening a savings account that best suits you. These comprise of the following:

·         Identify your goals and needs. This is the first step in choosing the wright savings account. What do you need the savings account for? Is it for a long term or short term goal? Is it for a singular purpose? Is it for your kids? What exactly is your intention? By knowing what you’re saving for, you can get a good idea of the functionality you need as you start evaluating different banks, co-operatives and various types of savings accounts. Do you value security and liquidity? Or do you want the highest return? You need to answer these questions before proceeding.

·         Choosing the best type of savings account for your needs. After identifying your needs, the second step is to pick out the best type of savings account. You can refer to Part II of this series for this. Distinguishing between different savings accounts means looking at their features, where you can open them and what they’re designed to do.

·         Conduct research on the best financial institution you can open the savings account with. Check out for a credible institution that has the best terms, and that offers your savings the best features. Compare banks and co-operatives and find the one that offers your savings the features you need.

·         Interest rate and APY. Savings accounts typically tend to offer the lowest interest rates, when compared to other investment avenues. However, it is vital to find out the interest rates on a savings account, before settling on an institution. As you weigh your options, the account’s annual percentage yield, or APY, should inform on your decision but its not the only determining factor.

·         Average minimum balance requirements. Many savings accounts have balance requirements, which is the lowest amount of money you must have in the account, to keep it open and is assessed monthly in most financial institutions. If you drop below that amount, you may trigger penalty fees. Its advisable to pick a bank that does not penalize you or make you lock in a substantial amount of money in your account.

·         Account or Ancillary Fees or Service Charges. These are extra charges or common fees charged by financial institutions for ancillary services, such as monthly maintenance fees, dormancy fees, ATM fees, wire transfer fees, excessive withdrawal fees, overdraft fees, check re-order fees among many others depending on the institution. It is advisable to ensure that you are well aware of these charges, before opening the account or any other hidden charges.

·         Branch Network. This refers to the physical location of the financial institution and its branches. Its advisable to choose an institution that has a wide branch network. This is because at any given time you might need to visit the branch to make certain transactions. Despite the availability of internet banking, mobile baking or UPI, some procedures cannot be completed online unless its exclusively an online bank. Some people prefer in-person banking, visiting a brick-and –mortar bank as opposed to transacting online.

·         Opening/Initial Deposit Requirement. Most financial institutions require some kind of initial deposit to create the account. As you review your savings account options, take note of the amount you need to deposit in order to open your account. Some institutions have an opening balance requirement which is typically low, but is and could be higher on accounts that offer higher interest rates.

·         Availability and Convenience. Internet and mobile banking has made it possible for people to transact 24/7 anytime and anywhere, which offers a lot of convenience. Does the account include ATM access. Its important to consider accessibility and ease of use before opening your savings account.

·         Customer Service. Customer support is crucial to consider in the event that you face any issue or require assistance from the institution or even in inquiring about your savings.

·         Availability of credit facilities. Its easier to take loans from an institution that has your basic savings account. To qualify for a loan, an institution always refers back to your savings history. In case you ever need credit in the future, its advisable to assess the credit facilities offered by a financial institution.

·         Discounts/Offers/Debit-card deals. From time to time, some financial institutions offer deals and discounts on their debit-cards, as a competitive tool in the market, which range from cash-back offers to insurance coverage. Some banks even offer gold and platinum debit cards which offer a myriad benefits. It could save you some cash.

A savings account that ticks all the boxes mentioned above is inarguably the wright one.