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How to open Savings Account? Features, Types, Interest rate, Eligibility, Documents required

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The savings account is very simple compared to the different types of accounts that operate in the banking system. This account gives its holder full opportunity to deposit money with full security and to take interest in that money. A savings account can be opened easily in any bank. Here are the details of all the information that falls under this account.

How to open Savings Account
How to open Savings Account

Why open a savings bank account?

This question is often asked that why should a person start his banking from a savings bank account and why not from another account? 

The answer to this question is given in such a way that in addition to the savings bank, the amount of balance kept in other accounts opened in banking is more.

Also, the facilities of other bank accounts are comparatively more expensive than a savings bank account, and it is relatively difficult for a newcomer to enter the economic world to understand.

Savings bank accounts generally provide better interest to their customers, so that they save as much money as possible and deposit it in the bank.

Also, the needs of a common man have been added to the savings bank account, so that he can spend on his daily needs through online.

Like the current account, many transactions cannot be done in it because this account is designed for saving and not for spending. This puts a reasonable restriction on the client’s expenses.

Types of Savings Bank Account

Types of Savings Bank Account
Types of Savings Bank Account

There are different types of savings accounts, whose details are given below –

Regular Savings Account

Regular savings account can be opened in any bank with very basic information.

Salary-based Savings Account

Many banks prepare such savings accounts at the request of big companies. The bank gives these companies a specific interest rate for this, which benefits the employees of the bank. Money is transferred from the company’s bank account to these salary-based savings accounts on the employees’ pay day.

Senior Citizens Savings Accounts

These accounts are for senior citizens of the country. It is usually similar to a regular savings account, but it has a relatively higher rate of interest. Such accounts can be linked with other schemes of other senior citizens.

Minor’s Savings Accounts

Many banks allow the opportunity to open an account even for those under 18 years. In this way, their parents can directly deposit money in the account of their children’s names, so that their education and career can run smoothly.

Zero Balance Savings Account

In this type of account, along with saving, the properties of the current account are also found, but there is a fixed limit for withdrawal of the maximum amount daily. Because it is ‘zero balance’, there is no fear of penalty. Usually, the facility of this account is given to those who are weak in maintenance.

Women’s Savings Account

This savings account is only for the women of the country. One of the biggest advantages of this account is that women who have these accounts can easily get loans from the bank. Also, bank interest on such bank accounts also gives more than regular accounts.

Post Office Saving Accounts

Such saving accounts are opened in the post office. This account is more like a regular account. Post offices are often found in every small and big city and village, but in many places, there are no branches of the bank. Therefore, accounts are opened in such places at the post office. The interest rate found in the post office is similar to the bank’s interest rate. The customer can close or open his account whenever he wants. The best thing is that this account can be opened with a balance of only 50 / -.

What is a zero balance savings account?

As is clear from the name itself, such an account which the customer can maintain even on zero balance, and for this he will not have to pay any penalty. Actually, there is a limit to keep a minimum balance in other savings bank accounts, which is determined by the type and area of ​​the bank. 

In India, the balance in the savings account in public banks is less than that of private sector banks. Similarly, the balance in the savings account opened in rural areas is less than in urban areas. 

Zero balance savings account is immune from such conditions and if the customer does not maintain any balance then it is free of penalty with suitable conditions, meaning the bank does not charge any penalty for and it works like a regular savings account.

Documents required to open a savings account

In any way (online or offline), many necessary documents have to be submitted when opening a bank account. A detailed description of those documents is being given here.

  • Proof of personality and age: Any officially registered documents which contain the name, age etc. of the customer can be useful for this work. Driving proof, passport, any useful bill etc. can be used in these proofs.
  • Photograph: Generally any bank asks to submit at least two snappy passport size photographs.
  • Residential address certificate: Voter card, passport, driving license etc. can also be used for this proof.
  • Senior Citizen Certificate: If the applicant wants to take advantage of senior citizenship, then he has to provide proof of his seniority. For this, the senior certificate issued by the government is very useful.
  • Income Proof: If required, that is, the customer has to provide proof of his income when asked by the bank in a particular situation.

Eligibility for Savings Bank Account

The customer has to be eligible to open a savings account in any bank in India as follows.

  1. Generally, any bank opens an account for people above the age of 18 years. Therefore, the customer has to be over 18 years of age to open an account.
  2. It is essential for the customer to have proof of citizenship of India.
  3. For those below 18 years, the bank also provides an opportunity to open an account, in which the role of guardian of the account holder is present.

Benefits from a savings bank account

There are several advantages to opening a savings account in this period. A detailed description of its benefits is given below.

Benefits from savings bank account
Benefits from a savings bank account
  • It is a headache to maintain one’s transactions and returns records, but if the account is in the bank, then the bank itself takes care of all these records.
  • These days, a bank account is required for many types of transactions. Many transactions have started happening in day to day life, which transacts in a very short time. A savings account is capable of providing all such facilities.
  • A Savings account gets a slightly higher rate of interest than other types of account, so the facility of interest in it is better.
  • There is a limit to uplift money daily in a savings account, which is helpful in regularizing the balance.
  • Any bank can customize a savings account as per the convenience of its customers.
  • Fund Transfer Facility: This is an online money transfer facility, in which the customer can transfer money online. For this, internet banking facilities are started on savings accounts. It is of two types, interbank and intra bank. An interbank is one in which funds are transferred to the same bank, and an intra bank is one in which funds can be transferred to another bank. This is an important feature, which is used a lot in metros.
  • Card facility: In this, ATM cards are provided by the bank to all banks, through which customers can withdraw their money seven days and 24 hours a week from the account. Some banks have also started the facility to transfer money through an ATM machine. Although this card is used as a debit card, which the customer can easily pay online.

Disadvantages of Savings Account

  • Charges on the card: The bank imposes some annual fee on the customer’s debit card, which is called the maintenance charge. Many customers are not aware of this.
  • Low interest: The interest you get on a savings account is very low. Is almost non-existent. In comparison, other fixed banks get more interest.
  • Fees for transferring money: If the money is transferred from the bank to the account of another bank, then an additional fee is levied.
  • Minimum Balance: All banks have fixed some minimum amount based on their rules, which is necessary to be in the savings account. If the customer is unable to maintain this minimum amount due to any reason, then he has to pay an additional fee.
  • Additional ATM charges: Customers have the facility that they can withdraw their money from any bank’s ATM machine, but it is charged by the bank. To withdraw money from the ATM more than the limit amount, additional fees have to be paid.

Rate of interest on savings account of various banks

Bank Rate of Interest
RBL Bank 7.1% pa (Daily balance 10 lakh) / 6.1% pa (Daily balance 1 lakh) / 5.1% per year (Daily balance less than 1 lakh)
Kotak Mahindra Bank 6% per year
IndusInd bank 4% pa (Daily balance max. 1 lakh) / 5% pa
Yes Bank 6% pa (below 1 crore)
Laxmi Vilas Bank 5% pa (Daily balance up to Rs. 5 Lakh) / 6% pa (Daily balance more than Rs. 5 Lakh)
Bandhan Bank 4.25% per annum (daily balance less than 1 lakh) / 5% (daily balance more than 1 lakh)
HDFC Bank 4% per year
Axis Bank 4% per year
State Bank of India 4% per year

How to open savings account online

Follow the instructions given below to open a savings account online.

  • First of all, visit the online web portal of your selected bank.
  • You may need to create an online account to log in to the website. So, create an account for the website.
  • After logging in, go to the page to create a new account. Fill the online application on this page.
  • While filling it, you will have to give information about your name, residential address etc. and along with this, proof of all these will also have to be uploaded. Many banks also demand hardcopy of these evidences. After this, the bank sends its representative. Hence there is no need to go to the bank.
  • After these formalities, the account is opened within a very short time.

How to open a savings account offline

Follow the following instructions to open a savings account offline.

  • First of all, know the interest rates of all the banks running and choose one bank as per your requirement. Keep a minimum amount of money with you to open a bank account.
  • Many types of necessary documents are required to open a bank account. Take those documents and go to the nearest branch of your selected bank and get the form to create an offline account. Fill all the required templates of this form very carefully.
  • Attach Xerox copies of all the required documents along with the filled form and submit it to the bank representative.
  • Your bank account will open within 1 to 12 days of depositing.

How To open a savings bank account, required documents for opening bank account, Procedure to open a Savings Account online, Rate of interest on savings account of various banks

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