Do's and don'ts of opening a new savings account

In today’s world, a bank account has almost become a basic necessity. You have a number of options to choose from – recurring bank accounts, savings accounts, and current accounts – and you can choose one that best suit your needs. If you want to open a savings account quickly, then you have come to the right page to learn more about what should be done and what should be avoided. These tips will help you to understand how to open an account in the best possible way: 

The Do’s
Keep your password safe: When you open a savings bank account, you will usually receive an ATM or debit card, which will ease your transactions considerably. You can easily use this ‘plastic money’ at various places such as stores and restaurants. The pin that you enter every time while making a transaction is your secure password – it is important that you keep this password safe and do not share it with anybody. Try to keep it simple, so that you will always remember it, but it should not be something that anybody else can crack easily. If this passcode falls into the wrong hands, your money is no longer safe.

Maintain a minimum account balance: When you open any account in a bank, it will inform you about the minimum balance that you must maintain. The best part about opening a savings account is that you can open it in a zero-balance account. This way, you will not have to worry about the minimum balance. But if you opt for any other option, make sure that you read all the clauses thoroughly before you sign up for your new account.

The Don'ts
Be aware of phishing messages: There are a number of fraud companies that will call you, message you, and email you about bogus schemes. This kind of scam is called phishing, and you need to be very careful about becoming  involved. Phishing is defined as an attempt to obtain sensitive information (usernames,  passwords, credit card details) by disguising as a trustworthy entity, usually through  electronic communication. More often than not, the intention of phishing is malicious (to cheat you). If you respond to these messages, you could get yourself into serious trouble; not only could you lose a lot of your hard-earned money, but you could also become trapped in legal proceedings.

Avoid net banking on shared computers: Net banking is one of the fastest ways to make online transactions. However, it is best that you avoid doing your net banking transactions on computers that are used by others as well. Additionally, make sure that you secure your passwords; also, never save your passwords on such shared computers, otherwise your account can easily be accessed by others.

Opening a savings account is a great way to save money and keep it aside for emergencies. But try to open a zero-balance savings account, because it is easier to maintain. You will not have to worry about keeping a certain balance in your account all the time, and you can focus more on your savings.

Disclaimer: This Article is for information purpose only. The views expressed in this Article are personal and do not necessarily constitute the views of Kotak Mahindra Bank Ltd. and its employees