Savings account is basically a deposit account that an individual keeps with a bank or any financial institution that provides a moderate interest rate and principal security. This account is considered to have high liquidity so that one can withdraw the amount at any point of time.
There are various types of savings account for different purposes:
This is type of account where the salary of an individual is usually disbursed. This is a type of account where the minimum balance obligation is waived off and is restricted to one account per person.
· Joint account:
This is a special type of account that is usually handled by multiple account holders. Banks allow 2-4 account holders for a single joint account currently.
· Woman’s savings account:
This type of account is only provided to a woman and holds special features and interest rates applicable.
· Minor’s savings account:
This type of account is held by an adult, making a minor child its secondary holder. Usually Parents open this account for their children in order help them save money for themselves.
· Senior citizen’s savings account: This is a type of account that is offered only to people who are above the age of 60, this account holds special features and waivers accordingly.
Savings account can be availed from any commercial bank in the country. You can visit any branch of a commercial bank and request for a savings account, but you can opt for a much easier way, all you need to do is log on to CreditKaro.com and select savings account from the tabs on the home page, once you reach the product list page, choose the one that suits you the best from the options below.
Following factors affect the selection of a savings account:
NO. There are no age restrictions when it comes to opening an savings account.
According to RBI regulations, banks are liable to charge a penalty against non-maintenance of an operational savings account, this penalty also includes service tax and education cess at the applicable rates. Only a dormant account is free from any penalty.
Interest rates usually vary from bank to bank, but the range varies from 4% to 7% per annum.
- The interest rate that you earn is calculated either on a daily basis or monthly and it is credited to your account on a half yearly basis.
Anyone above the age of 18 can open a joint account, the only significant difference here from a regular savings account is that two people can operate the account.
Yes. If you decide to open a savings and a fixed deposit account together, many banks provide the facility of no minimum balance maintenance and waivers on additional fees.
· Proof of ID
· Voter’s ID
· Permanent driving license
· Aadhaar card
· NREGA job card
· Residence Proof:
· Society outgoing bill
· Electricity/ Water/telephone bill
· Gas bill(pipeline)
· Property tax statement
· Domicile certificate
· Aadhaar card
· NREGA job card
· Defense ID card
· Registered rent/lease agreement
· Basic savings account
· Salary account
· Minor’s account
· Woman’s saving account
· Senior citizen’s savings account
The minimum account balance in a savings account can vary from INR 0 to INR 25000 depending upon which bank you’ve chosen.
As per Reserve bank of India (RBI) guidelines an account becomes dormant when no transaction has been initiated by any means (cash withdrawal, issue of cheque, fund transfer, internet banking etc.) for two years at a stretch.
As a senior citizen there are various facilities you can avail from the account such as:
· Priority services
· Discounts at partner outlets
· Free of cost alerts