Saving account is used to save or deposit money or cash. Deposited money in saving account earns some interest as well. Anyone can open savings account in Public bank (Like: – SBI, PND, UBI etc.), Private Bank) Like:- HDFC, ICICI, Yes Bank etc.) and Cooperative Bank (like:- Saraswat Bank etc.)
Individual can use saving account to save money for specific expenses or for long-term uncertain goal. Saving account is a safe way to store money in bank, and banks often offer some interest on the money stored in account. An ATM card generally is linked to a saving account.
Objective of opening a saving Account
Savings accounts are opened to encourage people to save money and collect their savings. In India one can open a saving account by depositing just Rs. 100. And minimum balance required to keep in account varies bank to bank.
History of the Savings Account
The concept of Savings account first started in Europe, during 1500s. people has lots of cash and were seeking for a place to store it. The idea of financial institution spread throughout Europe, then to America.
Features of Savings Account
Important Features of Savings Bank Account are as following
- In order to open the account, PAN (Permanent Account Number) details are required.
- At the time of cash transaction above Rs. 50, 000 PAN details are mandatory.
- One can withdraw amount, but certain restrictions are applicable.
- The money can be withdrawn either by cheque, ATM card, or withdrawal slip of the respective bank.
- The interest rate payable on deposited amount is very nominal on saving accounts. At present the rate of interest it is between 4% to 6% per annum.
- There is no maximum time period for holding it.
- The minimum amount has to be maintained in savings account. Minimum amount varies bank to bank.
- There is no loan facility against saving account.
- You can avail the facility of e-banking to pay electricity bill, telephone bills and other utility bills.
- Generally EMI (equated monthly installment) for personal loan, car loan, housing loan etc. are paid through saving bank account.
Advantages of Saving Bank Account
- Having a saving account encourages savings habit especially among salaried people.
- It helps to do online shopping via internet banking.
- You can also book you travel tickets be it air ticket or train ticket and hotel booking through your savings account.
- It helps to keep record of all your online transactions.
- You can immediately withdraw the fund from your savings account through ATM.
- Banks offer many services to the saving account holders.
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