How to Open a Savings Bank Account, Documents Required, Benefits and Rate of Interest 

How to Open a Savings Bank Account, Documents Required, Benefits and Rate of Interest 
How to Open a Savings Bank Account, Documents Required, Benefits and Rate of Interest 
How to Open a Savings Bank Account, How to Open it, Documents Required, Types, Benefits, and Rate of Interest | Saving Account information, how to open, required documents, types, benefits, and interest rate 

Saving a bank account is very simple among the different types of accounts running in any banking system. This account gives its holder full opportunity to deposit money with complete security and earn interest on that money. A savings account can be easily opened in any bank. Here the details of all the information coming under this account are being given.

Why Open Savings Bank AccountWhy Open Savings Bank Account)

  • It is often asked that why a person should start his banking with a savings bank account and why not with any other account?
  • The answer to this question is given in such a way that in addition to the savings bank, the minimum balance to be kept in other accounts opened in banking is more.
  • Also, the facilities of other bank accounts are relatively more expensive than a savings bank account, and are relatively difficult to understand for a newcomer to the economic world.
  • Savings bank accounts generally provide better interest to their customers, so that they can save more and more money and deposit it in the bank.
  • Also, the needs of a common man have been linked to the savings bank account, so that he can spend on his daily needs through online medium.
  • Unlike the current account, multiple transactions cannot be done in it because this account is created for savings and not for spending. This puts a reasonable cap on the customer’s expenses.

How To Open A Saving Account Online –

Follow the instructions given below to open a savings account online.

  • First of all visit the online web portal of your selected bank.
  • An online account may be required to log in to the website. To create an account for the website.
  • After logging in, go to the new account creation page. Fill the online application on this page.
  • While filling it, you will have to give your name, residential address etc. and also upload the proof of all these. Many banks also demand hardcopy of these proofs. After this the bank sends its representative. So there is no need to go to the bank.
  • After these formalities, the account is opened within a very short time.

How To Open A Saving Account Offline-

Follow the instructions below to open a savings account offline.

  • First of all, know the interest rates of all the running banks and choose any one bank according to your requirement. Keep the minimum amount required to open a bank account with you.
  • There are many necessary documents required to open a bank account. Take these documents to the nearest branch of your selected bank and get the offline account creation form. Fill all the required fields of this form very carefully.
  • Attach Xerox copies of all required documents along with the filled form and submit it to the bank representative.
  • Your bank account will be opened within 1 to 12 days of deposit.

Required Documents For Bank Account Opening-

There are several required documents to be submitted while opening a bank account in any way (online or offline). Here a detailed description of those documents is being given.

  • Proof of Personality and Age: Any officially registered document containing the name, age, etc. of the customer can be useful for this purpose. A driving license, passport, any useful bill etc. can be useful in these proofs.
  • Photograph: Generally any bank asks to submit at least two immediate passport-size photographs.
  • Proof of residential address: Voter card, passport, driving license, etc. can also be used for this proof.
  • Senior Citizen Certificate: If the applicant wants to take advantage of senior citizenship, then he will have to give proof of his seniority. For this, the senior certificate issued by the government is very useful.
  • Income Proof: The customer has to give proof of his income when required, i.e. on demand by the bank in a particular situation.

Saving Account Eligibility-

In order to open a savings account in any bank in India, the customer has to be eligible as follows.

  1. Generally, any bank opens an account for people above the age of 18 years. So the customer has to be above 18 years to open the account.
  2. It is necessary for the customer to have proof of citizenship of India.
  3. The bank also gives the opportunity to open an account for those below 18 years, in which the role of the guardian of the account holder is present.

Saving Account Benefits-

There are many benefits of opening a savings account in this era. Below is a detailed description of its benefits.

  • Many investment funds of India keep their records separately, but if the account is in the bank, then all these records are taken care of by the bank itself.
  • These days a bank account is being required for many types of transactions. Many transactions have started happening, which have to be completed in a very short time. A savings account is capable of providing all such facilities.
  • The savings account gets a slightly higher interest rate than other types of accounts, so the facility of interest is better in it.
  • There is a limit on the daily withdrawal of money in the savings account, which helps in regularizing the balance.
  • Any bank can customize the savings account as per the convenience of itself and its customers.
  • Fund Transfer Facility:  This is an online money transfer facility, in which the customer can transfer money online. For this internet banking facility is started on the savings account. It is of two types, interbank and intrabank. Interbank is one in which funds are transferred in the same bank, and intrabank is one in which funds can be transferred to another bank. This is an important facility, which is used a lot in metropolitan cities.
  • Card Facility: In this, ATM cards are provided by the bank to all the banks, through which customers can withdraw their money from the account 24 hours a day, seven days a week. Some banks have also started the facility of transferring money through ATM machines. This card is used as a debit card, through which the customer can make payment easily.

Loss of savings account Disadvantages Of Savings Account)

  • Charges on the card: The bank levies certain annual charges on the debit card of the customer, which are called maintenance charges. Many customers are not aware of this.
  • Low interest: The interest earned on the savings account is very little. Almost equal to . Compared to this, more interest is available in other fixed banks.
  • Charges on money transfer: If the money is transferred from the bank, if it has been transferred to the account of another bank, then an additional fee is levied.
  • Minimum Balance:  All banks have fixed some minimum amount based on their rules, which must be in the savings account. If the customer is not able to maintain this minimum amount due to any reason, then he has to pay an additional fee.
  • Additional ATM Charges:  Customers have the facility to withdraw from their ATMs at any bank’s ATM machine, but this is levied by the bank. For withdrawing money from ATM more than the specified number, additional charges have to be paid.

Type SB (Saving Account Type)-

There are different types of savings accounts, the details of which are given below.

  • Normal Savings Account: Standard Savings Account can be opened in any bank with very basic information.
  • Salary Savings Account  : Many banks prepare such savings accounts on the request of big companies. The bank gives a specific interest rate to these companies, which benefits the employees of the bank. Money is transferred from the bank company’s account to these pay accounts on the day of employees’ wages.
  • Savings Account for Senior Citizens : This account is for the senior citizens of the country. It is usually similar to a regular savings account, but the interest rate is relatively higher in this. This type of account can be linked with other schemes of other senior citizens.
  • Savings Account for Women  : This savings account is only for the women of the country. One of the biggest advantages of this account is that women who have these accounts can easily get loans from the bank. Also, the bank interest on this type of bank account also pays more than the regular account.
  • Zero Balance Saving Account : In this type of account, along with savings, the qualities of current account are also found, but the limit of withdrawal of maximum amount remains fixed daily. Since it is ‘Zero Balance’, there is no fear of any penalty in it. Usually the facility of this account is given to those people who are financially weak.
  • Attached Linked Savings Account : Many times people attached savings account is also called as package account. In this way, the account holder has to pay very less service charge. Many times the bank gives more interest on the money deposited in this type of account.
  • Post Office Savings Account : This type of savings account is opened in the post office. This account is more or less like a regular account. Post offices are often found in every small big cities and villages, but in many places there are no branches of the bank. Therefore, accounts are opened in such places in the post office. The interest rate found in the post office is the same as the interest rate of the bank. The customer can close or open his account whenever he wants. The best part is that this account can be opened only with a balance of 50/-.
  • Savings Accounts for Minors : Many banks offer an opportunity to open an account for those who are below 18 years of age. In this way, their parents can directly deposit money in the account of their children, so that their education and career can go on smoothly.

Saving Account interest rate in various banks 

names of banks  Rate of interest 
RBL Bank 7.1% p.a. (Daily balance 10 lac) / 6.1% p.a. (Daily balance 1 lac) / 5.1% p.a. (Daily balance less than 1 lac)
Kotak Mahindra Bank 6% p.a.
Indusland (induslnd) Bank 4% p.a. (Daily balance maximum 1 lac) / 5% p.a. (Daily balance above 1 lac less than 10 lac) / 6% p.a. (Daily balance 10 lac)
Yes Bank 6% p.a. (below 1 crore)
Laxmi Vilas Bank 5% p.a. (Daily balance up to 5 lac) / 6% p.a. (Daily balance above 5 lac)
Bandhan Bank 4.25% p.a. (Daily balance less than 1 lakh) / 5% (Daily balance more than 1 lakh)
HDFC Bank 4% p.a.
Axis Bank 4% p.a.
State Bank of India 4% p.a.

 

What is Zero Balance Savings Account? (What is Zero Balance Account)

As the name suggests, such an account that the customer can maintain even on zero balance, and for this, he will not have to pay any penalty. Actually, there is a limit to keep the minimum amount in savings bank accounts, which is determined on the type and region of the bank. In India, the balance amount in the savings account in public banks is less than in private sector banks. Similarly, the balance amount in the savings account opened in rural areas is less as compared to urban areas. Zero balance account is free from such condition and in this, if the customer does not maintain any balance, then it is penalty free with suitable conditions, i.e. the bank does not levy any penalty for it like normal savings account.

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