If you switch your bank account, consider these essential pointers that ensure the new bank account is safe and beneficial.

 Essential factors to consider when switching bank accounts

There are numerous reasons to change banks. Perhaps your new bank is in a better location, has lower fees, offers greater savings account interest rates, or has more friendly customer service. However, after you've decided to switch, the procedure of moving money from one account to another is more complicated than just pressing a button. Remember that once you've chosen the right bank, you must make the switch deliberately because there are many things that can go wrong. As a result, consider the following crucial factors before deciding on another bag for your savings.

1.Reliability of the bank --

The bank's credibility is one of the most important factors to consider. Because you intend to deposit your hard-earned resources with the bank, you must be certain that your funds are safe and secure with the organisation. You should verify the bank's background and see if it has all the necessary certifications to operate. You can examine the Internet database for consumer satisfaction with the bank's reliability by going online. Then compare it to your present bank to see if it is better and more reliable. Only switch if it appears to be a superior alternative.

2.The better rating --

Sometimes it's advisable to go with a bank that has a good reputation for providing high-quality financial services. Keep an eye on the annual bank ratings that appear on the internet. That is one of the most useful hints for selecting an ideal bank that may be superior to the previous one.

3.The charges --

There is no such thing as a free service in this world, and banking is no exception. Every bank usually has a printed charge schedule available. You can compare the fees charged by this bank for issuing new chequebooks, debit cards, and other items to those charged by your previous bank. You must collect competing banks' charge schedules to determine whether they are charging competitive rates or not.

4.The facilities --  

Banks do not simply provide you with a savings account. In fact, they provide a wide range of services, including home banking, online banking, foreign exchange or Forex services, loans and advances, financial advising services, bank lockers, and so on. You may look up the bank's rating for these types of loans on the internet. The banks are also graded based on the quality of their customer support, the timeliness of their banking personnel, and other factors. The bank's history of phishing schemes is an important factor to consider. Due to insecure online banking services, phishing assaults refer to the fraudulent transfer of money using online banking facilities. You can also discover information about a bank's processing time for completing your service. Ensure all these are better than your present bank so that you make the change for betterment. 

5.The interest rate --

One of the essential reasons to save money in a bank is to earn interest. Different banks have a policy of only paying interest on specific types of accounts. Furthermore, the rate of interest payable on savings varies depending on the policy of every bank and the amount of balance maintained. As vigilant clients, you must determine the rate of interest you will be charged and the monthly date on which the bank's interest will be payable. Keep a close check on the current interest rate and the prospective new option to make a smarter move.

6.The proximity --

The main point of switching your bank for your account is that your bank should be close to your house or place of business. Opening a bank account in a completely different city or suburb is futile. If you have no choice but to open such an account, find out if you may access it from any of the bank's other branches at your leisure.

Also Read: Understanding your savings account

Also Read: How to earn more interest on your bank savings account

Once you consider all these pointers, you will be able to automatically derive the decision if the new bank you are inquiring about is better than your current one. Remember, when you are switching your account, follow these steps very carefully for a secure switch. You can refer to this video.

  1. Get a certificate from the current bank of closure of your account there.
  2. Provide all your current and updated documents to the new bank to open the account.
  3. Don't lie to the new bank about your old account. ( They will automatically know about it through your documents.) 
  4. Select the account that suits your convenience and seems practical and easier to maintain. 

Also Read: RBI asks banks to provide free facilities to savings bank account holders