Savings Account refers to a bank account opened with a deposit of liquid funds and without having a given maturity date. Savings accounts usually have some restrictions on the number of withdrawals per statement period, and they tend to pay a relatively low rate of interest.Savings Accounts are used by individuals and businesses around the world as a means of storing their liquid funds for future use.
Savings account are ideal choice for any individual who earns a steady or regular income like salaried employees. This type of account is also ideal for those who have any short term financial goals to meet like a future vacation, financing a wedding, buying a car etc.
The savings bank account is the traditional home for cash savings. Today, a savings bank account is a necessity and is an essential component of an individual’s finances. The most important reason to open an account is the automatic access that it offers to other financial instruments such as investments, loans and savings. The savings bank account offers several other facilities and features that one should explore to make optimum use of cash flow.
A savings bank account does not provide protection against inflation, which means whenever inflation is above the rate that a savings bank account earns; the account earns Various types of Savings Bank Account Offer are :
No Frills account is aimed at those with limited cashflows. This account allows you to bank with a zero minimum balance and has a stipulated minimum or average balance..
Salary Account offered to all salaried employees of companies banking with a particular bank. The account comes with concessions on maintaining minimum balance, number of withdrawals, additional cheque book facility and other features including free ATM cum debit card in most instances. One can issue multi-city cheques at no additional costs.
Sweep-in or Multiplier Account provides the liquidity of a savings account coupled with high interest earnings of a fixed deposit which is achieved through a fixed-deposit linked to the savings account. The balance in this account is never idle.
Miscellaneous Accounts cater to different target groups by bundling features like: Privilege banking: offers additional services for a fee or on maintaining higher minimum balance
Children’s Account: targeted at children, they can operate this account based on pre-set conditions by the parent or guardian
Account for Women: Targeted at women with special features such as privilege cards and special discounts
Senior Citizen Account: Aimed at those above 60 years, the account offers access to special counters in the bank branch besides additional interest on deposits and low or no minimum balance maintenance requirementso real returns.
You can close the bank account on any day within the banking hours.
Once you have selected the bank to open an account you will need the following documents:
- An account opening form which the bank will provide.
- Two passport size photographs
- Address and identity proof such as copy of the passport, PAN (permanent account number) card or declaration in form No 60 or 61 as per the Income Tax Act 1961, driving license, voter’s ID or ration card.
- Carry original identity proof for verification at the time of account opening
- These days, you can also also open an online account without visiting the bank branch.
- Adhaar has been mandatory now .