A savings account is a fundamental tool for managing your money. It gives you a safe place to keep your money while still being able to add more easily. In uncertain economic times, a savings account gives you stability and helps you earn extra money through interest. Here, we’ll look into the different types of savings accounts and how to choose the right one for you.

What is a Savings Account?

A savings account is a basic bank account that allows creditors to deposit money safely while earning a modest interest. The primary purpose of a basic savings account is security rather than making returns. However, the funds are not locked in, and account holders can make withdrawals or transfers as needed, unlike fixed deposit accounts. Many banks offer zero-balance savings accounts that do not require a minimum average monthly balance.

Why open a Savings Account?

Here are some of the significant benefits of opening a savings bank account:

  • Earn Interest: Savings accounts allow account holders to earn interest on the money deposited, making savings risk-free. While returns are lower than investing, savings accounts provide reliable compounding growth.
  • Security: Savings accounts offer security and the flexibility of accessing money when needed. The funds are protected in case of emergencies.
  • Everyday Banking: A savings account facilitates payments, money transfers, ATM withdrawals, and other financial transactions. It serves as the foundation for managing finances.
  • Digital Access: Today, most savings accounts come with 24/7 net banking and mobile app access for monitoring balances and making digital payments.

 

Choosing the right Savings Account 

With many banks offering savings accounts today, choosing one that aligns with your financial priorities and needs is essential. Here are a few parameters to evaluate:

  • Interest Rates: Compare interest rates offered on savings accounts across leading public and private sectors and small finance banks. Typically, rates range from 2.5% to over 7.25%
  • Zero Balance vs Minimum Balance: Assess whether you need a zero balance account without any charges or minimum balance requirements. This would suit account holders who maintain low average balances.
  • Digital Features: Check the digital payment facilities, mobile banking versatility, account statements, etc., offered by the bank within the savings account.
  • Customer Service: Evaluate the availability of phone, email, and chat banking services to resolve queries and difficulties while operating the savings account.

 

Reasons to open an account with AU Small Finance Bank

AU Small Finance Bank provides attractive benefits that make it a preferred choice for those opening new savings accounts:

  • Digital Convenience: The bank offers digital access through its AU 0101 mobile app, net banking, SMS banking, and email alerts. This enables customers to monitor their accounts and make digital payments from anywhere.
  • Extended Hours: AU Small Finance Bank branches are open until 6 pm on weekdays, offering greater flexibility to customers. Weekend hours are also longer compared to traditional bank branches.

 

The process to open a Savings Account with AU Small Finance Bank

AU Small Finance Bank offers the option of opening a new savings account through an easy online process:

  • Online Application: To start, customers can download the AU0101 mobile app and tap the Savings Account tab. After registering on the app, account opening takes just a few minutes.
  • eKYC Verification: Electronic KYC formalities can be promptly completed on the app by providing PAN and Aadhaar details for instant verification.
  • Video KYC: Customers also have the option to schedule a video call with a bank representative to complete KYC verification and provide any required documents. This convenience allows customers to complete account opening formalities from home.
  • Digital Documents: Digital approval of terms and conditions and signing up forms eliminate extensive paperwork when opening accounts online. Customers also get digital approval on the app after completing verification processes.
  • Instant Activation: Once video KYC and other e-verification steps are finished, customers receive instant account activation and details on how to digitally operate their new savings bank account.

 

Operations post-opening Savings Account

Customers can seamlessly conduct routine transactions once they open their AU Savings Account, including:

  • Cash Deposits & Withdrawals: Visit the nearest AU Small Finance Bank branch or ATM to withdraw cash or make deposits into the account.
  • Mobile/Net Banking: The AU 0101 mobile app or net banking website allows you to review your account balance, statements, and online money transfers.
  • Debit Card Usage: Activate the AU Debit Card delivered and set up a PIN for merchant payments, online purchases, ATM transactions, etc.
  • Cheque Facility: Provide payee details online to request cheque books to transfer money via cheques. Cheque pickup and delivery options are also available.
  • Doorstep Banking: AU Small Finance Bank offers convenient deposit collection and direct cash delivery to account holder addresses where needed.

 

Thus, AU Small Finance Bank provides the best traditional and modern digital banking services through its savings account. Customers can bank when they want at their convenience!

 

Conclusion

You can earn an interest of up to 7.25% on your savings. You can get your interest payments every month. With AU’s mobile and online banking, you can do your banking anywhere, anytime. You can quickly pay your bills online and get instant notifications. Besides, special bank advisors and longer bank branch hours will help you when needed.