Tuesday, May 30, 2023

Facts on Savings Accounts

facts about savings account

Savings bank accounts are the simplest bank accounts that anyone can open. They are meant to promote the habit of savings among citizens while allowing them to access their funds when required.

Savings Bank Account can be opened in the name of an individual or in the joint name of the depositors. The minimum balance to be maintained in a normal savings bank account varies from bank to bank.

Public sector banks require lower minimum balance as compared to private banks.

Things to consider while opening a savings account

It is advised to obtain the following information from the bank before opening the account:

Minimum balance requirements.

Penalty provision in case the balance is less than the minimum prescribed amount

Bank charges apply like ledger charges

Any additional fee chargeable

What other benefits are provided by the bank like credit facilities and banking flexibility

, Documents required for opening a savings account (It may differ from bank to bank)

Two passport size photographs

Legal form of identification like ID card, passport

· An identity card that acts as a referee for an existing account holder.

Minimum opening balance

Some Benefits of Savings Bank Account

· Savings account provides a high degree of liquidity. Every day, at any time 24 hours a day, 7 days a week, even if the bank is closed, you have the right to withdraw your money via email.

· Interest is paid annually on savings account and it varies from bank to bank.

Savings bank account also provides savings for the future.

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