A savings account is a deposit account with a bank or other financial institution where you can store extra money, earn interest, and access it when needed. It is the most basic type of banking instrument used by a person and one of the safest ways to ensure that you can easily access your earned money when you need it. You can deposit money or a check into your savings account or transfer money from another savings account using IMPS / NEFT / RTGS / UPI and earn interest on deposits that are credited to your account on a quarterly basis.
The interest rate offered on a savings account is generally between 3.5% and 7% and varies from bank to bank. Withdrawals can be made either by visiting the bank branch and collecting a check/withdrawal from the account or from an ATM with a debit card linked to the account. In most cases, you will need to maintain an average minimum balance for the quarter or month in accordance with banking rules and regulations. However, banks also provide zero balance accounts without the hassle of maintaining the minimum savings account balance.
Recently, banks have created different types of savings accounts to serve customers of different ages and work areas. Depending on your eligibility and requirements, you can open one of the bank savings accounts below.
Each bank offers different accounts, which differ in their characteristics and advantages. Depending on the needs of your personal savings account, you can select the appropriate option. The types of savings accounts commonly used in India include:
The zero-balance savings account is a kind of savings account that banks offer people to work freely without having to maintain a minimum balance. Unlike other savings accounts, account holders do not have to hold a minimum balance, as zero balance savings accounts have no restrictions as to maintaining a minimum balance. To open this account, the applicant must submit the basic KYC documents or can open zero balance savings account online with eKYC based on Aadhaar.
A regular savings account offers a minimum of facilities and basic rates for services. You must ensure that you reach the minimum balance prescribed in your savings account so as not to incur additional costs.
It is also a kind of savings account that can only be opened by one employee, and most companies pay the employee’s monthly salary directly into this account. A key feature of the salary account is that it is a zero balance savings account, which means there is no need to maintain a minimum balance on the savings account. If the monthly salary is not credited to this account for 2 to 3 months, this type of account automatically becomes regular savings account with minimum credit requirements.
The main advantage of opening a savings account is that you can get into the habit of saving and earning interest on that deposited amount. The features of the savings account vary depending on the type of account you choose. Here are some of the general features that will help you understand the benefits of opening a deposit account with a savings account:
Applicants do not have to meet any income or employment criteria to apply for a savings account. The eligibility criteria for opening a savings account are minimal and may vary from bank to bank. However, here are some general requirements:
The savings account can be opened by an Indian citizen, a non-resident Indian and also foreign citizens.
The applicant’s age must be over 18 years. However, today your parents / legal guardians can also open savings accounts for minors.