What is Savings Account?
The Saving Account is generally opened by salaried individuals or anyone who is having his/her fixed regular income. One can open Saving Bank Account in Commercial Banks like ICICI, HDFC etc; Co-Operative Banks like Saraswat Bank etc; and Public Sector Banks like SBI, Bank of India, Central bank of India.
Postal departments also accept deposits, so one can also open saving account with Post Office as well. This facility is also open for students, senior Citizens and Pensioners.
Saving Accounts help us to develop the habit of saving. The habit of saving is a back bone of Indian Economy and this habit is initiated by Mothers and Housewives in the family.
Saving Account in Bank facilitates to keep your money safe along with periodical interest income. Banks calculate interest on the invested money which you keep in your Saving Account.
How does one open Saving Account in Bank?
Where ever you open your saving bank account, procedures will be same apart from some features like the cash deposit limits outside local area; ATM charges and number of ATM withdrawals.
In order to open Savings Bank Account, you are required to arrange certain personal Documents like: Passport size photos, address proof and identity proof.
Steps to open saving bank account
- Bank will ask you to submit 2 recent passport size photos, one address proof and one identity proof. (If your address proof has your photo in it, then you will not be required to provide additional documents for identity proof, you address proof will serve the purpose)
- In addition to above documents you will be required to provide one PAN Card copy. (in case you don’t have PAN card then you need to sign form 60 or 61).
- Get Reference; Most of the nationalized banks will ask you to have some existing customer’s reference.
- Arrange Opening Amount; where ever you open your Saving Bank Account, you are required to deposit some minimum amount as per bank policy.
- Get the application form, from your selected bank.
- After completing the form, hand over self attested documents for address proof, identity proof, Pan Card, photograph along with opening amount to bank.
After completing above formalities, bank will process your documents to their saving account opening team.
After opening your saving account bank will send you the opening kit to your communication address, mentioned in your application form.
What are the various types of Saving Bank Accounts?
Apart from the regular savings accounts, following are the other types of Savings Accounts available in Indian Bank
- Joint Account:
This type of Savings Account can be operated by more than one account holder. Generally joint accounts are featured for 2 account holders. Currently some banks allow up to 4 joint holders for a single account.
- Women’s Savings Account:
A Women’s Savings Account can only be opened by a woman and special features and interest rates those are applicable to this account.
- Senior Citizen’s Savings Account:
This type of account can only be opened by a person who is aged over 60 years of age.
- Minor’s Account:
In this type of Account, the minor child is the second holder of the account, and parent or guardian is the Primary Holder.
- Salary Account:
This is a special type of savings account in which the minimum balance clause is waived off. One individual can hold only one salary account at a time apart from the zero balance benefit.
Are there any Restrictions with regard to age, income etc. to open basic savings account?
There are no such restrictions with regard to age or income at the time of opening a saving account.
What are the various types of accounts based on minimum balance requirement?
Based on Minimum Balance requirement, savings accounts can be classified into 3 categories as following:
- Classic Account
- Gold Account
- Platinum Account
Classic Account: In case of Classic Account, the required minimum balance is Rs. 10, 000.
Gold Account: While for Gold category Accounts, the minimum balance requirement is between Rs. 10, 000 and Rs. 25, 000.
Platinum Account: In case of Platinum category account, you need to maintain more than Rs. 25, 000; usually between Rs. 50, 000 or Rs. 1, 00, 000.
How do the Banks calculate average monthly balance?
To calculate the average monthly balance, bank consider the total of daily closing credit balance of each day for whole month and divide it by the number of days in the month. If the average is less than the requirement, bank levy the charges for non-maintenance.
At what rate the account holder will earn the interest on the balance in Saving Account?
The rate at which the bank calculates the interest on saving bank account is usually in the range of 4% to 7% per annum. Interest credit in bank account on a half yearly basis.
When does a savings account become dormant?
As per the RBI guidelines, the account becomes dormant if the customers do not make transactions for a continuous period of two years.
How to active a dormant Savings Accounts?
In order to active a dormant account, you will have to:
- Contact your Branch Manager.
- Submit a written request for activation of your dormant account.
- Produce and submit copies of current proof of identity and address for verification.
- Initiate a transaction using cash or cheque to activate your account again.