Why Choose Saving Bank Accounts? Savings bank accounts are popular due to their simplicity. Such deposits primarily ensure that you can accumulate money while attracting a nominal rate of interest. Also, your funds do not get tied up. So, when you need money, you can simply use this source.
This account typically requires you to maintain a low minimum balance. However, this depends on the bank and the account type (recurring deposit linked, salary, etc). Also, the rates of interest linked to such deposits generally vary from bank to bank. While many Indonesians hold such a deposit, not many pay attention to the interest earned on this account. They do not look at the rate of interest, nor do they know when such the interest is due.
The interest for a savings deposit account is typically compounded daily, but paid monthly or quarterly. This is extremely beneficial because the bank calculates your interest on the money on which it has already paid you interest.
Choosing a Bank for your Savings While most people choose a savings bank (tabungan bank) based only on the interest rate, here are a few other factors to consider.
1.Find out the minimum balance limit that has to be maintained in the account. Also, check whether you will be liable to paying a penalty in case the amount drops below the minimum limit. Some banks agree to waive the minimum balance if you agree to open a fixed deposit with them. Also, some offer ‘zero balance’ accounts, especially for students and salaried individuals.
2.Are there ancillary fees? Banks might charge fees for ECS payments, debit card issue, debit card use and other such services provided. Ensure that there are no hidden charges for these other services.