What is a Savings account?
The most basic account at a bank that allows you to deposit money, keep the funds safe, and withdraw funds as needed. These accounts typically pay interest on your deposits, which helps you grow your money, but rates are relatively low on these low-risk accounts.
What are the types of Savings account?
There are three common types of savings account which most of the bank offer. All these accounts differ in its features and benefits, based upon your personal savings account requirements you can choose the befitting option. The following are the common types of savings account available in India:
Zero Balance Savings Account:
This account is offered by banks to individuals to operate freely without the strings of maintaining any minimum balance. Unlike other savings account, the account holders needn’t maintain any minimum balance as zero balance savings accounts do not come with the constraint of maintaining a minimum balance. To open such an account, applicant will have to submit the basic KYC documents or can open a zero-balance savings account online using Aadhaar based eKYC.
Regular/Basic Savings Account:
A Basic or regular savings account features the minimum of facilities and basic rates for services. The account holder has to ensure to maintain the prescribed minimum balance in your savings account so as not to incur extra charges.
This type of account can be only opened by a salaried individual as most of the companies directly deposit the employee’s monthly salary into this account. A key feature of the salary account is that it is a zero-balance savings account, which means, you needn’t maintain a minimum balance in this savings account. If the monthly salary is not credited into this account for 2 to 3 months, this type of account is automatically converted to a regular savings account with minimum balance requirements.
What are the benefits of Savings account?
Here are a few common features to help you understand the benefits of opening a savings bank deposit account:
- The savings account interest rates range from 3.5% to 7% p.a.
- Network branches and ATMs of the respective bank are easily accessible
- Transfer funds easily using IMPS/NEFT/RTGS/UPI facilities to any bank account
- Internet Banking and Phone Banking facilities for a quick check of balance and bill payment
- Personalized cheques for enhanced security
- Personalized Account Number
- Several offers and discounts on Debit
- No limits on the amount deposited
- Facility to link loan EMIs or RD deductions through the savings bank account
What is the eligibility criteria to open a Savings account?
Applying for a savings account does not require applicants to satisfy any income or employment criteria. Eligibility to open a savings account are minimal and would vary from one bank to the other, but here are some common requirements-
- Savings account can be opened by an Indian citizen, Non-Resident Indian and foreign nationals.
- The applicant should be over 18 years of age. However, nowadays savings account can also be opened for minors by their parents/guardians.
How to open a Savings account?
You can easily open a savings account online which is very simple and hassle-free.
If you are not comfortable applying online, you can always pay a visit to the nearest bank branch to open a savings bank account. These are the steps to open a savings bank deposit account at a bank branch:
- Compare savings account of different banks to get the best option as per your specific requirements. Walk in to the bank websites or other financial websites to get an idea about the features of different savings accounts.
- Visit the bank branch with KYC documents. You will need to take originals and copies of your identity proof, address proof, income/employment proof (if required), and age proof and photographs to the nearest branch of the bank.
- Approach the responsible counter at the bank, which deals with the account opening process and get the account opening form.
- Go through the account opening form and fill it properly as required. Check whether you have filled in all details correctly and signed at the required places. When done, submit the form along with the copies of your documents, i.e. identity proof, address proof, income/employment proof, age proof and photographs.
- The clerk at the bank will submit your application for processing. Your account will be functional within the processing time as mentioned by the bank. The processing time varies from one bank to another.