Why your savings account needs an upgrade: Expert's pick

In today's dynamic financial landscape shaped by digitisation and disruptive innovation, is your traditional savings account due for an upgrade? With new advancements in banking technology, you could be earning higher interest, better rewards, and an upgraded experience. Let's examine closely why your savings account might need an upgrade in 2025.

Low interest rates

Most savings accounts at legacy banks offer interest rates in the range of 3-4%. But new generation fintech-powered banks provide interest rates of 7% or even higher.

Limit on free services

Legacy banks restrict the number of free transactions allowed on savings accounts in a month. This leads to charges being levied on additional ATM withdrawals, cheque-books issued, online fund transfers, etc.

Manual, paper-led processes

Opening and subsequently managing a traditional savings account involves significant paperwork such as filling forms, furnishing documents, signatures, proofs, physical verification, etc. This entire process is slow, cumbersome, and requires multiple branch visits.

Low daily ATM withdrawal limits

The daily ATM cash withdrawal limit in older savings accounts is typically quite low, ranging from just ₹25,000-40,000 per day across different banks. This is not enough for many people's needs and requires them to make multiple trips just to withdraw their own money.

The lack of modern technology benefits

Most legacy savings accounts lack the convenience of modern banking technology benefits, like instant notifications on transactions, digital dashboards with spending insights, paperless e-statements, biometric logins, etc., that new digital platforms readily provide.

Limited debit card rewards

In addition, debit cards associated with most traditional savings accounts do not offer any rewards, cashback, or loyalty points on your everyday spending. Thus, you miss out on potential indirect savings that can be accumulated from expenses you would anyways incur.

Quarterly Interest credits

Most banks have a standard practice of crediting interest on quarterly basis in your savings account. In this method, you receive interest less frequently, potentially missing out on the benefits of monthly compounding.

Why choose IDFC FIRST Bank?

IDFC FIRST Bank exemplifies the benefits of upgrading to a modern savings account.

● High interest rates: Offers a competitive interest rates that are higher than most traditional banks.

● Monthly interest payout: IDFC FIRST Bank Savings Account credits interest at the end of every month, helping your savings to benefit from monthly compounding, thus effectively accelerating the growth of your funds over time.

● Zero fee banking: Provides zero charges on all savings account services like IMPS, NEFT, and RTGS transactions and many more

● Unlimited free transactions: Enjoy unlimited ATM withdrawals and other free services.

● Digital banking convenience: Open an account online instantly via video KYC and manage it through an intuitive mobile app.

● Attractive rewards program: Benefit from discounts and offers on debit card usage.

Conclusion

Legacy savings accounts have many limitations that may not make sense for today’s digital consumer. With low interest rates, transaction limits, arduous processes and minimal security, they are unable to meet modern banking needs. That’s why savvy customers are upgrading Savings Accounts at new-age banks like IDFC FIRST Bank. With competitive savings account interest rates, simplified digital banking, enhanced security, as well as zero-fee banking on commonly used savings account services like NEFT, RTGS, IMPS, and many more, IDFC FIRST Bank makes banking extremely convenient and rewarding!

Disclaimer: No Deccan Chronicle journalist was involved in the creation of this content. The group also takes no responsibility for this content.