5 Things To Know About Savings Account

A savings account is one of the primary accounts that helps you to accumulate your funds simply by opening a new account and depositing your money to earn interest on the funds deposited in your savings account. Along with that it also helps to keep you money secure.

Are you eager to get most out of your savings account? Here are five essential things that you should not miss about a savings account.

1. What is a Savings account?

As mentioned earlier, a savings account is a kind of deposit product that helps you to store your money safely and at the same time earn returns on your deposits.

• Every bank offers a varying rate of interest on the savings account.
• There are specific guidelines related to the frequency of transactions for withdrawal of funds from savings accounts.
• You can also get insurance on your savings account provided your bank provides that facility.
• Specific banks would also require to maintain a minimum deposit in your savings accounts.

Best banks for savings account: Below mentioned are some of the best banks to open a savings account. These commercial banks & small financial banks provide higher rates of interest on your savings accounts. Thus, to get attractive returns on your savings, you can consider opening a savings account in any one of these banks.

2. What are zero balance savings accounts?

Zero balance savings accounts are similar to regular savings accounts except that there is no need to maintain a minimum deposit in your savings account and is thus best suited for customers who are not much comfortable in keeping a regular balance in their savings account. Similar to regular savings accounts, zero balance savings accounts also provide the following features.

• You can transfer funds from your savings account through modes of payments such as RTGS, NEFT, IMPS & UPI.
• There is no limit on the maximum amount of deposit that you can make in your zero balance savings account.
• Issue of Cheque books, ATM cards etc. and other facilities can be accessed through zero-balance saving accounts.

Below-mentioned are some of the popular banks through which you can open a zero balance savings account:

3. Different Types of Savings account

Below mentioned are some of the popular types of savings account:

• Salary Savings Account: Most of the companies provide salary savings accounts for the employees to transfer their salary from the company’s account every month. Such accounts offer specific benefits such as no transaction charges.
• Savings account for minors: Parents or guardians can open a savings account for minors for the child below 10 years. Banks convert these accounts into regular savings accounts as they attain the age of 18.
• Savings accounts for women: Banks also offer higher and attractive rates to women for opening savings accounts, and these accounts are known as savings accounts for women.
• Savings accounts for senior citizens: Along with providing higher rates, these savings accounts also offer the benefit to link it with senior citizen savings schemes for remittance of pension funds.

4. Overdraft facility against savings account: The lesser-known fact about savings accounts is that you can also take overdraft facility against savings account.

• Overdraft is the financial instrument that allows you to withdraw money even when you have zero balance in your accounts.
• All savings accounts opened under Pradhan Mantri Jan Dhan Yojana allows you to take overdrafts of Rs. 5000 or 4 times the balance whichever is lesser.
• You can also avail the overdraft facility against your salary accounts up to 3 times your current salary. However, the eligibility for the same may vary from bank to bank. Also, there are some banks which provide overdraft facility up to Rs. 4 Lakhs.

5. Opening of Savings Account Online: You can open a saving account both through online and offline modes. To open a savings account online, you must fulfil the eligibility criteria.

• Resident Individuals
• Foreign nationals residing in India
• Non-Resident Indians
• Should be at least 18 years old
• Parents or guardians can open a minor savings account.

Here are some documents that you require to open a savings account:

To open a savings account you require to submit KYC documents which includes documents for identity proof & address proof and your recent passport size photograph.

For Identity Proof: 

• PAN card
• Passport
• Voter ID
• Employee ID
• Driving license
• Aadhaar card
• NREGA job card
• Any photo ID card issued by the Central/State government

For Address Proof : 

• Aadhaar card
• Voter ID
• Ration card
• Passport
• Driving license
• Utility bill like electricity bill, water bill, telephone bill
• Bank account statement
• Passbook of the bank
• A letter stamped either signed or recognised from a gazetted officer that verifies the address details of the applicant can also be submitted as an address proof.

Conclusion: It is thus pretty evident that a savings account is one of the most accessible options to secure your savings and earn good returns. The best thing about a savings account is that you require minimum documents & eligibility criteria to open a savings account. Also, opening a savings account online can help you to save your time & access information about your account anytime & anywhere at the comfort of your house. It is easy to keep track of your funds and access or withdraw funds in case of any financial emergency.

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