Saving money is crucial for financial stability and security. Whether it is for long-term goals like retirement or short-term objectives like an emergency fund, having a savings plan is a smart decision. While saving money matters, having a savings account is equally important. A savings account not only stores your money but also offers the opportunity to earn interest and provides additional features like online and mobile banking, budgeting tools, and EMI calculators.

But have you ever considered whether the bank you have chosen is the right fit for your savings account? Choosing the right bank and account helps to optimise earnings and simplify financial management. Whether you are saving for a new home, a special occasion, or a vacation, the right savings account paired with the right bank can accelerate your progress and reduce stress. But how to identify the right time to make the switch?

Discussed below are signs that indicate it's time to switch your bank and start enjoying the benefits of a more profitable savings account.

  • Less interest rates

    Low savings account interest rates mean less interest earnings. In fact, inflation can even outpace the interest earned and cause your savings to lose value over time. Switching to a bank that offers a higher interest rate is a smart decision to maximise your savings potential. After all, the higher the interest rate, the more you earn on your deposited funds.

    For instance, if you have Rs 20,000 in a savings account with a 3% interest rate, you will earn just Rs 600 in interest after a year. However, if you have the same amount with a 4% interest rate, you will earn Rs 800 in interest annually. High interest rates can help you reach your savings goals faster and make the most of your hard-earned money.

  • Limited savings account benefits

    One of the main benefits of a savings account is the opportunity to get cashback offers, rewards, gift points, shopping vouchers, and other exclusive deals and discounts. These benefits can help you save money on everyday expenses while earning rewards for your transactions. However, if these benefits are limited or non-existent at your current bank, it may be worthwhile to switch to a bank that offers better incentives.

  • No dedicated online platform or mobile banking app

    If your current bank lacks a dedicated online platform or mobile banking app, it is a sign to consider switching to a more tech-savvy bank. Having access to the latest features and services enhances your banking experience and frees up valuable time for other important tasks.

    For instance, Kotak Mobile Banking App offers more than 250 features to make banking more accessible and convenient for everyone. You can transfer money, scan and pay bills, invest, apply for loans, purchase insurance, get 24-hour support, and report fraud, all through the app.

  • Ease of operations

    Switching banks for a savings account can be a wise decision if the new one offers ease of operations, which means more convenience and efficiency. This includes features like a larger network of ATMs and branches, door-step banking, an easy online saving account opening process, lower fees, 24x7 customer support, and a personalised banking experience.

To conclude

From low interest rates to limited features, these are some signs that make switching banks for a savings account worthwhile. Before finalising your decision, visit your selected bank’s website to understand the different types of savings accounts available and their features.

You can contact them beforehand to inquire about the documents required for savings account, related fees, debit card deals, list of branches, and other important details. This step can save you time and simplify the process of opening a new account.

Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.