A savings account is a typical bank product that provides customers a safe place to store their saved money at the same time earning a certain interest. Not all people have savings account because some receive salary or income in the form of cash unlike employees working in a company who are receiving salary from their payroll account which can also be a savings account.
If you want to open a savings account, there are some information you should learn to pick the best savings account that suits for your needs. Basically, it’s not difficult to apply for an account as long as you have the required documents the bank is looking for.
What to Look for in a Savings Account?
There are many information in the Internet you can get to help you decide which savings account is the best in terms of various criteria. It’s up to you to decide which are the most important. I listed some information you should know before choosing a savings account.
1. Interest Rate
Interest rate is by far the most important consideration when selecting a savings account. The higher the interest rate, the better is the savings account since it will earn more money on the principal amount you deposited. A 0.01% difference in interest is a big amount when compounding is considered.
2. Initial Opening Deposit
Another important thing you should know when choosing a savings account is the initial opening deposit. It is the first deposit you should put on your account as a new depositor. Each kind of account has its own initial deposit, some are high and some are low depending on its purpose or use.
Some banks offer very low initial deposit for low-income earners and children who want to save money on the bank.
3. Maintaining Balance
All savings account has maintaining balance which is the minimum amount of money your account should have at any given time. If, for example, should your account fall below the maintaining balance, the bank will charge your account a particular fee and this will continue monthly until your account reach the set maintaining balance.
Therefore, it is better to choose a savings account with the lowest maintaining balance possible and keep your account always above it to avoid fees.
4. Customer Support
Make sure you are choosing a bank with a good customer support in times you need help or you want to inquire about something related to your account. It should have a 24/7 customer service center and is quick in responding to problems.
As much as possible, you can contact them in all forms of communication like email, mobile, telephone and Internet calls.
You may also want to know what other people are telling about the bank you are considering by searching some customer feed backs through online search.
5. PDIC Insured, Other Benefits and Freebies
Philippine Deposit Insurance Corporation (PDIC) is the agency of the Philippine government that insured the money of depositors of PDIC member banks up to P500,000 when the bank went to bankruptcy. Not all banks in the Philippines are PDIC members so you must know first if the bank you are choosing to have a savings account is a PDIC member.
Most banks offer some benefits for its new customers like an online banking linking to your savings account when you apply for the first time, lower interest rates for loans and a lot more.
Your goal in applying a savings account is to have a secure place for your saved money and at the same time earn from it through the interest the bank gives. It is your job to pick which criteria is the best for you when choosing a savings account.
Is it high interest rate? A good customer service? A low maintaining balance and initial deposit? The decision is yours since it is your money after all.