What is a Saving Account?
A Savings account is a type of bank account in which you can deposit your money and also you can withdraw it whenever you require your funds. It is a safe and you can open this account at any bank.
Depositing
your money in a savings account is the most liquid investment. So it is easy
for you to withdraw your money from your account whenever you require it.
Even
now-a-days, you can open a savings account online and you can use a savings
account for online transactions. This account gives higher interest rates and
you can operate on your mobile, laptops etc.
Why do you need to open a saving account?
You
need to open a saving account to save your excess money for future use. By
saving you can make payment to any person through cheque.
A
Savings account also helps your money from theft. You will receive a debit card
for making payment for purchase in the market, so it is comfortable to carry a
debit card.
Who can open a savings account in a bank?
Anyone
can open a savings account individually or jointly. But banks require a person
to be a citizen of the country.
If
you are a foreigner in the country for a long time living there for business or
other work then you can also open a savings account.
Any
individual who is eligible can open a savings account in any bank by filling
application form and KYC documents.
What are the types of savings accounts?
Following
are the types of Saving Account
Regular/Basic Saving Account:
This
type of saving account provides the basic facilities. There is no limit to the
amount of money deposited but in some banks you need to maintain minimum
balance.
If
you fail to maintain minimum balance then the bank can charge penalty charges.
You
will be issued a cheque book, debit card for withdrawal from your account or
make payment.
Salary Account
This
type of saving account is only opened for the employee. The employer directly
deposits the salaries & bonus etc of its employees in this account.
Various
benefits are given to the account holders like high rate of interest, zero
balance, free cheque books and draft etc.
If
in this account salary is not credited for 2-3 months then this account changes
to basis/regular account.
Saving account for seniors
Person
who is above 60 years of age can open this account. Various benefits are given
to the account holders like higher interest rate, special benefits on term
deposits.
Joint Account
This
type of savings account is controlled by more than one account holder. Any
person in this account can withdraw or deposit the money.
Women savings account
This
type of saving account can only be opened by women. Special benefits are given
such as higher rate of interest, personal insurance coverage etc.
Minor Account
In
this type of savings account there are Joint holders in which one of there is a
minor and other is guardian or parent.
After
the attaining of 18 years minor can visit the bank to change minor account to
regular saving account.
Pradhan Mantri Jan Dhan Yojana Saving Account
The
holder of this account gets insurance cover of Rs. 30000 and accidental cover
of Rs. 100000 with no charge.
Under
this account individuals are linked with a Rupay debit card and they can
withdraw a maximum of 4 withdrawals in a month and they do not require a
minimum balance.
What are the benefits/ Advantages of saving accounts?
Earning Interest
The
most important benefit that you can get when you deposit your money in a
savings account is that you will get interest on your deposited amount. Most of
the banks offer higher interest rates and special benefits.
Safety of your money
Depositing
your money in a savings account is completely safe with banks. Even banks
provide you deposit insurance upto Rs.1 lakhs.
Helps for getting loan
It
is beneficial for you to have a savings account with a bank. A savings account
helps you to take a loan from banks when you require it as you already have
your account in that bank.
What are the disadvantages of saving accounts?
Interest Rate Changes
Interest
rate on saving account change as per the Central bank guidelines.
Minimum Balance
In
a savings account you need to maintain a minimum balance and if you fail to
maintain then the bank can charge a penalty. So while opening your savings
account you should firstly check the minimum balance requirement and you should
maintain it to avoid penalty.
What are the documents required for opening a saving account?
To
open a saving account firstly you have to fill the account opening form. You
can download it from the bank website or you can directly visit the bank.
Along
with the opening form you have to submit your latest passport size photographs.
You
also have to submit certain documents to verify your identity proof and
residence proof.
Here is the
detail of document required for opening saving account
Identity Proof
You
can submit any one of the below as Identity proof
- PAN Card
- Aadhaar Card
- Voter Card
- Passport
- Driving Licence
- Employee ID
Residence Proof
You
can submit any one of the below as residence proof
- Aadhaar Card
- Voter Card
- Utility Bill (Electricity, Water, Telephone)
- Passport
- Driving Licence
- Bank account Statement or Passbook
- Ration Card
How to open a savings account online / offline?
You
can open a savings account both online and offline.
For
online mode you need to visit the bank website to find the process.
For
offline you have to visit the bank branch from where you want to open a savings
account with the above required document along with the latest passport size photograph.
Conclusion
Opening
a savings account is very important to save your money in the bank with
security and you can also avail other bank benefits from this savings account.
You can select any of the above types of savings account as per your necessity.