A guide to Savings Account

Banks and other financial institutes offer Savings Accounts to keep your money safe. They provide interest on deposits and the ability to withdraw funds. Hence, you have a sum of your deposited funds and interest generated in your account every year.

What is a Savings Account?

A Saving Account is a type that allows users to deposit money with the bank and earn interest on the money deposited. Customers can avoid the risk of carrying cash by opening one, which provides access to funds. The account has the following characteristics:

• Savings Accounts are considered liquid investments since the money invested can get withdrawn from your account.
• In a Savings Account, the number of transactions is limited monthly or yearly.
• Mobile, Digital Banking, and other services are available to Savings Account customers.
• Savings Accounts interest rates are modest compared to other options. They decide the amount banks pay to depositors for keeping their funds with them.
• Unlike other Bank Accounts, the Savings Account does not allow overdraft.
• Saving Bank Account holders receive an ATM/Debit Card that they can use to withdraw cash from ATMs and pay for products and services online and in person.
• You need to always maintain a minimum amount in their Savings Account. Depending on the bank, the minimum amount required differs.

Types

• Regular Savings Account
• Zero balance Savings Account
• Senior Citizen Savings Account
• Children and Minor Savings Account
• Family Savings Account
• Women's Savings Account
• Salary Savings Account

Benefits

• Savings Account offers the liquidity, allowing customers to withdraw funds from any location.
• Interest generated on money gets deposited into the account, which has Savings Account interest ranging from 4% to 7%, based on the bank.
• A few banks also provide International Debit Cards that lets you withdraw money from ATMs in other countries.
• When you use Online Banking, it is easier to track all your transactions and generate bank statements.
• Open a Savings Account by depositing the required minimum amount and completing the necessary documentation.

You can do offline or online Saving Account opening. Online options either happen over banking apps, the internet, or at the bank branch. Before opening one, decide what account type you want to open and which bank to open it with.

Documents required

Consider this checklist for the documents needed to open the account before proceeding:

• PAN card
• Identification proofs like Aadhaar card, Voter's ID, passport, etc.
• Address proofs such as passport, driving license, Aadhaar card, ration card, utility bills etc.
• Passport size photographs

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Created on Jan 13th 2022 02:45. Viewed 192 times.

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