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All you need to know about a Savings Account

When you want to deposit money, the first thing that generally comes to mind is creating a bank account, to engage in withdrawing and depositing money. However, when you go to open an account in any bank, you are asked whether you want to open a savings account or a current account.

A Saving Account is an account in the bank where you can deposit your saved money little by little, and this account is a very beneficial financial tool. A Savings Account allows you to not only store your funds with the bank after spending expenses from your earned money, you also get interest on it annually and it is a  safer account to store your money as compared to keeping it at home.

You do not have to pay any charges on transactions in these accounts. But you cannot use such accounts for business or large transactions.  There are some limits on the operation on these accounts, such as withdrawals cannot be made from ATMs more than thirty times within 6 months.  For more than this transaction, you may have to pay some charge.  On opening most savings accounts, you have to deposit a minimum amount of Rs 100 to Rs 1000 in the bank.

To open this account in most banks such as PNB Bank or SBI, the minimum balance should be 1000 or 3000 to 5000. It varies with every Bank. If you keep less than this amount in your account, you have to pay penalty. This account is considered suitable for students and individuals earning monthly salaries. You can withdraw the amounts from ATM up to a limit and make online transactions too.

How much interest is available?

Is one of the first question to arise in everyone’s mind while opening a bank account, how much interest do you get in this account. In most of the banks, the interest rate is given annually between 3% to 4%. Some banks give you more interest than this, but they may also involve some fees, or higher minimum balance requirements.

Documents needed to open a Savings Account

Whichever bank you approach, you need some documents to open a Savings Account, such as Address Proof, your name or identification paper, etc. You can use any one document for proof.

Voter ID Card: Yes, if you are an Indian citizen and want to open a savings account, you can use your identity card as address proof.

PAN Card: Nowadays, most banks ask you for your PAN card details to open an account; this is also an essential document while opening your bank account.

Aadhar Card: Aadhar card has become an essential document in today’s time to open an account.

Passport: If you have an Indian Passport, you can also use it for the address in your bank account.

Driving License: You can use your driving license as your identity and address proof in the bank.

You can use any of these above documents to open a savings account in any bank. The bank will also give you an account opening form you will have to fill in with your details and submitted along with the address proof documents.

What is a Digital Savings Account, and what are its advantages?

A Digital Savings Account is a paperless bank account that can be opened without any documentation, by applying online. This account can be opened instantly, and it is also secure.

With the help of this account, you can access of many banking facilities via your mobile or laptop.

To open a Digital Savings Account in a bank, there is no need to go to the bank, and it can be easily opened sitting at home. You can complete many of your banking activities without visiting the bank branch.

Advantages

  •       Online bank accounts can be opened in a few minutes without going to the bank branch and from any place. Facility to open Instant and Paperless Accounts is available.
  •       24 hours online fund transfer facility is available. A money transfer facility is provided with IMPS, NEFT.
  •       Instant Virtual Debit Card (E-Debit Card) or Physical Debit Card becomes available with a Digital Savings Account.
  •       With this, Loyalty Rewards Points are also available.

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