Tips for Steering Clear of Common Savings Account Pitfalls

Posted on Tuesday, September 19th, 2023 | By IndusInd Bank

A savings account emerges as a reliable companion in your journey towards financial security, as you navigate the world of personal finances. It aids in saving for emergencies, funding future goals, and meeting long-term objectives. It is imperative, however, to use a savings account vigilantly to maximize your savings.  

Whether you are considering a traditional account or an online savings account, you must be aware of the common mistakes and their remedies. This comprehensive guide unveils the ways to avoid common savings account mistakes for enhanced savings to meet your financial goals.  

Common Mistakes to Avoid in a Savings Account

Whether you are new to personal finances or an experienced individual, following the right measures is crucial for maximizing your gains with a savings account. Many people own a savings account but are unaware of common mistakes, reducing their overall yields.  

Here are some mistakes that you must avoid while opening and managing your savings account:

Neglecting the interest rate 

The cornerstone feature of a savings account is its interest rate. Ignoring the interest rate might lead you to settle for lower returns. Understanding compound interest and its workings in a savings account is your first step. Compare the interest rates on offer and opt for an account that promises the best growth for your funds.  

IndusInd Bank Savings Accounts offer some of the best interest rates in the banking sector, along with several benefits to meet your specific banking needs. Based on your preferences, you can opt for an online savings account that suits your requirements. Click here to know the IndusInd Bank Savings Account interest rates. 

Disregarding fees and charges  

Hidden fees can quickly chip away at your hard-earned savings. Overlooking the fine print can be a costly error. Delve into the terms and conditions of your chosen account to be aware of any charges under the shadow. This transparency ensures that your financial aspirations do not suffer unexpected setbacks.  

IndusInd Bank always keeps its customer’s needs first and offers transparent and minimal fees on all its banking services. Moreover, you get free online fund transfers through NEFT, RTGS and IMPS via NetBanking or mobile banking. Explore IndusInd Bank fees and charges.

Ignoring regular deposits

Consistency is key when it comes to nurturing your savings. Failing to make regular deposits can slow your financial growth. Regardless of the amount, cultivate the habit of steady contributions towards your savings account. It is the small, consistent steps that lead to significant financial achievements.

If you are an Indus Multiplier Max Savings Account holder, you get dual benefits: the flexibility of a savings account and the interest rates of a fixed deposit. This account uses the smart sweep feature through which an excess amount above the threshold limit of ₹20,000 in your savings account is automatically booked into a fixed deposit offering better returns. This way, you can remove the hassles of manually depositing money without breaking consistency.  

Not reaping the offers available with your savings account  

While a savings account offers convenient online banking services to meet your daily expenses, it also comes with shopping offers, debit card privileges, and several other benefits. Failing to utilize these offers limits your savings potential.  

For instance, the Indus Delite Savings Account offers several benefits on fuel, dining, entertainment and debit card spending. You can enjoy up to 5% cashback on Amazon, up to 20% off on Swiggy and BigBasket, and ‘Buy 1 Get 1’ offers on movie tickets booked via BookMyShow using your Delite Debit Card. 

Failing to automate savings

In an age of technological dominance, automating your savings is a great strategy. Automating transfers from your primary to your savings account is advisable. Automating your savings account eliminates the risk of forgetting your payments and deposits amidst life’s demands, ensuring that your financial goals remain on track.  

Overlooking the impact of inflation 

While your savings account is a secure vessel, its static nature can make it susceptible to the effects of inflation. Regularly update your financial goals to counteract inflation. Monitoring your account performance through bank statements and expense management can help you make necessary decisions. This proactive approach safeguards your financial growth over time.

Why Opening an IndusInd Bank Savings Account is Beneficial 

In the digital age, convenience and efficiency are the most sought-after features of any product or service. In the realm of banking, IndusInd Bank has embraced this mantra, offering a range of features and benefits to account holders.  

Some common advantages of opening a savings account with IndusInd Bank include: 

• 100% digital and paperless application process for opening a savings account conveniently. 
• Ability to choose your account number via the MAMN (My Account My Number) facility.  
• Attractive savings account interest rates for better returns to meet your financial objectives.  
• A wide range of online banking services, such as fund transfers, utility and credit card bill payments, merchant payments, and more. 
• Minimal and transparent charges on banking services. 
• Exclusive offers on online shopping portals, food delivery apps, entertainment expenses, travel, etc.  

Conclusion  

By avoiding the common savings account mistakes mentioned above, you are setting yourself up for a more secure financial future. Navigate your savings journey wisely with IndusInd Bank Savings Accounts and consult the bank’s financial experts to make informed decisions.  

Remember, your savings account is a powerful tool that, when managed wisely, can help you achieve your short-term and long-term financial goals. Apply for a savings account now! 

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.