Savings accounts are vital for financial stability. Online options make opening one easier than ever without visiting a bank branch. These accounts let you manage savings remotely through online and mobile banking platforms. While convenient, some online savings accounts have minimum balance requirements that impact fees.

Read on to understand the minimum balance requirements for savings accounts and the benefits of savings accounts.

What are Online Savings Accounts?

Like traditional savings account types, online savings accounts allow you to earn interest on a balance, but this is done so without the need to go to your bank to complete the transaction physically. The critical difference is that they are opened and operated online via a bank’s website or app.

Online savings accounts have higher interest rates than traditional banks, convenient intra-account transfers, and online account access anytime from anywhere.

What is a Minimum Balance Requirement?

Most banks charge you a monthly maintenance fee or similar charges if you do not abide by the minimum balance requirement set on your savings account, either daily or monthly. A good example is when your account should always have at least $300 daily for a statement period. On the contrary, the bank may impose some maintenance fee each month if it needs that balance.

Minimum balance requirements help ensure the bank earns some interest income on the deposits held in your account before paying you interest. However, not all online savings accounts enforce strict minimum balance requirements for online savings account.

1. No Minimum Balance: IDFC FIRST Bank

IDFC FIRST Bank offers zero-fee banking on all variants of their savings account plans, including the Rs 10,000 average monthly balance account, the Rs 25,000 average monthly balance account, and more. By avoiding routine fees that can eat into your savings over time, often without you realising it, IDFC First provides completely transparent zero-fee peace-of-mind banking.

If you open an IDFC FIRST savings account, you can earn up to 7.25% annual interest on your balances. Plus, they offer monthly interest credits to help you reach your financial goals sooner. You can open an IDFC First savings account entirely online through their digital and paperless process or download the IDFC First Mobile Banking App to open a savings account.

2. How to Check Minimum Balance Requirements

Before choosing an online savings account, research different options to find one that suits your finances. Here are some tips:

• Compare terms and conditions sections on bank websites for minimum balance policy.

• Check third-party review sites listing key features of popular accounts.

• Ask the bank representatives through phone or chat about specific requirements.

• Look for accounts marketed as “no minimum balance” or those waiving fees for young or new savers.

Conclusion

Online savings accounts offer flexibility and higher returns than traditional savings. But some may charge you for not maintaining a minimum balance. Do your homework to select the correct account without such restrictions based on your saving goals and habits. Always choose banks that make saving money convenient and rewarding.