Learn about Saving Account – Part 1

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Learn about Saving Account – Part 1

Saving account is very useful and now days most of us own this account. It is useful in our daily life in various ways like for online as well as off-line shopping, to pay utility bills, to transfer the money and many more. Here in this article we will learn more about ‘Saving Account’.

What is Saving Account?

Saving Account is one of the Banking facilities to keep our savings or cash safely in the Bank Saving Account. It also earns some interest, periodically.

Post Office also provides the same facility of Saving Account, so one can also open it in the post office as well.

What are the features of Saving Account?

There are various features of Saving account as following:

  • Freedom of Withdrawal – apart from saving your money it also gives a liberty to withdraw your money any time and at any place using your debit card. Because this account is more liquid account than other type of accounts.
  • Account Holder – this account can be opened individually or jointly. Cheque can be signed by anyone to withdraw the money. only at the time of closing the account both the account holders have to sign.
  • Interest Rate – interest rate on saving account is being calculated on a daily basis. The rate varies in the range of 3.5% to 6%. RBI monitors the rate on Rs. 2 lacs and above, and below this amount bank can decide the rate of interest.
  • Debit card facility – Debit card also known as ATM card. You can use this card to withdraw the money or make payment at any shop or shopping mall from your saving account.
  • Online Banking – all banks provide this facility. It is a easier way to access the account. Using this facility you can cheque your balance, see the statement, transfer the money, pay your utility bills and many more.

What is the process of opening the Bank Saving Account?

You can apply for Bank Saving Account in two ways – Online & Off-line.

  • Off-line Process of Opening the Bank Saving Account –
  • First, fill-up the account opening form; you can get it from the local branch of the bank in which you want to open your account.
  • Give your declaration that you accept the terms & conditions and some regulation of the Bank.
  • To open the account you need one guarantor, it can be either the existing customer of the Bank or any respected/ known citizen to the bank.
  • You need to submit following documents:
  • Photocopy of your Passport or Voter ID.
  • Photocopy of address proof: Utility Bill (not more than three months), Aadhaar Card, Certificate provided by your employer, rent agreement etc.
  • Two recent passport size photographs.

Once you completed the above stated formalities, it will take couple of weeks to bank to complete the documentation process. After completion the process bank will send you the account opening kit. This kit will have cheque book, debit card, pin number of your debit card and one booklet of the bank.

  • Online process of opening the Bank Saving Account –
  • First go to the bank website.
  • Click on ‘Apply Now’.
  • Choose the Savings account from the given options.
  • Fill-up the application form. In the application form you need to fill the personal details like your Name, Date of Birth and other required details.
  • Once you filled the form, submit the application form.
  • When the bank official sees your submitted request, he/she will contact you to visit the branch physically along with your original ID Card.
  • Than bank official will perform the verification process.
  • Once all the formalities have been done from your side as well as from the bank’s side, you account will activate within 3 to 5 working days.

How to open a Post office saving Account?

It is a simple process of opening a saving account in Post office

  • Visit the nearby Post Office branch.
  • Fill and sign the form, and submit it along with required KYC documents, two recent passport size photographs and minimum balance account.
  • Minimum Balance: (i) with cheque book Rs. 500/- (ii) without cheque book Rs. 50/-.
  • There is a separate form to open the Senior Citizen Saving Account. And the physical introduction of the applicant is compulsory.
  • Minimum Balance for Senior Citizen is Rs. 1, 000/-.
  • You can open only one single account and joint account in one branch.

What are the eligibility criteria to open the Saving Bank Account?

Applicant needs to fulfill the certain following criteria:

  • He or she should be Indian Citizen.
  • Applicant should complete the age of 18 year and above.
  • In case of minors, minimum age limit is 10 years.
  • In case of less than 10 years, the parents or legal guardians can open the account on behalf of the minor.

What are the benefits of Saving Account?

  • The first and the foremost benefit of having Saving Account is you do not need to carry the cash with yourself. So it provides the safety.
  • The money deposited in Saving Account is insured by the Government. So in case there is cash crunch or the crisis in the bank, your deposited money is safe.
  • It provides you the liquidity of cash. You can withdraw the amount from your account any time from the ATMs.
  • Saving Accounts help us to develop the habit of saving.

 

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