How To Choose The Right Savings Bank Account For Seniors?

Many banks offer senior citizens a specially designed savings account according to their needs. A regular savings account may lack features that are essential for senior citizens. So, senior people may like a savings account that is especially made for them. Do you know, when you have to choose the best senior citizen’s savings account, what are the factors that you should consider? Here are some important factors and features that you should consider when choosing a senior citizen savings account.

How Much Minimum Balance Can You Afford?

Before choosing a savings account, you should ascertain what features you are looking for and the minimum balance you’ll be able to keep in your account to get those features. If you need a bank account only for doing financial transactions, you may choose a senior citizen savings account that requires NIL or a low minimum balance. Usually, the banks require you to maintain a minimum average monthly balance of NIL to Rs 5000 in Urban or Metro Branch (Minimum balance criteria may vary from bank to bank). On a premium senior citizen savings account, you may get several features such as a debit card with airport lounge access, a higher cash withdrawal limit on a debit card, a zero-cost doorstep banking facility, exclusive wealth management support, and zero or lower charge on locker, loans at discount interest rate, sweep-in facility, etc.

Be Careful About The Charges

You may use the savings account for different purposes, such as to deposit your money, to receive money from outside, to make payments, to use the debit card linked to your account for withdrawing money, for investment in FDs or other investment products, etc. However, many of these facilities that you get in your savings account may be subject to a charge. For example, transferring money from your account through an online facility such as Immediate Payment Service (IMPS) or National Electronic Funds Transfer (NEFT) may incur an applicable charge. A debit card in your savings account may be subject to an annual fee, or the withdrawal from an ATM above a certain amount may incur applicable charges. So, when choosing a savings account, you must check the list of charges that the bank levies for availing its various services. You may compare the various savings account options available in the market based on their features and associated charges before you open an account.

Finally

If you already have a savings account, you may check with your bank if they offera special account for senior citizens, and you may request them to convert your existing account to their senior citizen savings account. Some important features offered in a senior citizen account by some of the banks are doorstep banking, zero AMB requirement, debit card with zero joining and annual fee, attractive waiver on locker facility, higher cash withdrawal limit on debit card and priority support at bank branch.

The author is an independent financial journalist