Public and private sector banks provide Savings Account services. You can use the account to park and grow your savings gradually. The moment you start earning, open a Savings Account. While some employers offer an account to deposit the salary, you should also consider Savings Accounts from which you can avail of numerous facilities.
Here are the most basic facilities that all banks offer when you do an online Saving Account opening:
Use for daily transactions
The most basic feature of any Savings Account is that it lets you conduct daily transactions. There is no upper cap on the amount you can deposit in this account. You can deposit as cash, cheques, or online transactions through different accounts. However, banks do have a daily withdrawal limit on these accounts. Typically, the withdrawal limits are higher when you withdraw money from your bank branch than ATMs.
Get a Debit or ATM Cards
You get a Debit or ATM Card when you open a Bank Account. It is a plastic card that features your name, a 16-digit number, and the expiration or validity date on the front, with a CVV number and a signature strip on the flip side. You can use the ATM Card to withdraw money from any ATM vestibule. However, you ensure to check the number of ATM transactions you can make from your home and other banks.
Besides withdrawing cash at ATMs, you can use the card for shopping at retail stores and online websites. You can also use the card to pay your utility bills online.
Avail of Online Banking facilities
Another facility you get with Savings Account is Online Banking services. You can access the account online through the bank portal or smartphone. The bank provides a default login and Net Banking password to change before starting any transaction. You can use Net Banking to transfer funds between accounts via IMPS, NEFT and RTGS.
You can also pay your utility bills, house rent, Loan instalments, and other monthly expenses online.
Earn reasonable interest rates
All banks provide decent Savings Account interest rates. They are generally considered as a bonus for your loyalty towards the bank. While most banks offer a flat rate on the savings parked in the account, a few may offer higher interest rates to those who maintain high deposits, typically if the amount exceeds Rs. 1 lakh.
The interest on savings goes up to 7% depending on the bank and the savings parked. Also, the interest pay-out happens half-yearly or annually.
While opening a Bank Account, enquire about the accounts you can open. Besides the Regular Account, you can open minors, women, senior citizens, and other government schemes. These are easily accessible on the Banking app or the bank portal.