A savings bank accounts is the first bank account we open, either jointly (as minors) with our parents or when we turn 18. This account is the perfect vehicle to park your savings and withdraw or deposit money. A savings bank account makes it possible for one to conduct a wide range of personal banking transactions including fund transfers, bill payments, cash deposit and withdrawal and so on. Here are some frequently asked questions related to savings bank accounts.
- What are the different types of bank accounts in which I can park my savings?
You can choose from a wide range of accounts to park your savings. All banks essentially offer eight types of accounts which include regular savings account, joint accounts, family accounts, minor account, senior citizen accounts, women’s accounts, salary accounts and Pradhan Mantri Jan Dhan Yojana Account. A few banks have also started offering digital accounts.
- Can I open a savings bank account online?
Yes, it is possible to apply for savings account online. However, this facility is not offered by all banks as yet. Only a handful of banks are currently offering this facility in India. Also, while you can apply to open a savings bank account online, you are required to visit the bank with your original documents. The bank official will verify your documents and then open the account for you.
- What documents do I need to open my bank account?
Whether you opt for the online saving account opening facility or choose to visit the bank to open you account, you need to submit some basic documents to open your account. You will need your ID proof documents i.e. any government recognized document bearing your photograph on it and your address proof documents. Banks accept documents such as your PAN Card, Aadhaar Card, Passport, Voter ID card, Electricity or telephone bill, ration card etc.
- Do I need to maintain any balance in this account?
Yes, all account holders (except salary account holders) are expected to maintain a minimum balance amount in their savings bank account. This amount, however, differs from bank to bank. Generally, you need to maintain approximately ₹1,000 as minimum balance if you hold an account in a public sector bank. Private sector banks require you to maintain higher minimum balances, ranging from ₹10,000 up to ₹100,000. Salary accounts are regarded as zero balance accounts, which is why there is no restriction on balance maintenance.
- Are there any restrictions on cash deposit and withdrawal?
There no restrictions on the amount of cash you deposit into your savings account. However, banks may impose restrictions such as daily withdrawal limits, daily debit card usage limits, and frequency of ATM withdrawals in a month and so on.
- What is the interest rate offered on balances maintained in the account?
The interest rate offered on balances maintained in savings accounts also varies from one bank to the other. You can get anywhere from 3.5% to 7.0% per annum on the savings parked in this account.
- What facilities are provided with this account?
Your bank provides you with an ATM debit card, a free cheque book containing 10-25 cheques (depending on the bank), and a pass book. You also get access to net banking facilities that can be used to transfer funds from anywhere at any time.
If utilized properly, a savings bank account is ideal for personal banking and can serve as the stepping stone for account holders to build and grow their corpus.