Savings Account - Types, Features and Documents Required

What is a Savings Bank Account?

A savings bank account is the most basic banking facility offered by the banks. A savings account is used to keep surplus funds or deposit money that will not be used immediately. Savings account has a limit on the number of monthly transactions and earn a moderate interest rate on the balance maintained.

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See Also: Calculate Interest On Savings Account

Savings Account- Types, Features and Documents Required

Types of Aavings Account:

Regular savings account: These savings accounts can be opened with the most basic terms. The account holder uses savings accounts to park surplus money which can be used in emergencies. These accounts help people save money mostly to meet emergencies.   This could be your contingency fund in an emergency.

Salary Based Savings Account: These accounts are opened by companies or enterprises to disburse monthly payments to employees. Banks offer specific terms and interest rates on these accounts. Normally, these accounts do have minimum balance requirements. On the salary date, banks transfer the money from the company accounts to these accounts to pay salaries.

Savings Account for Senior Citizens: These accounts are custom-made for the benefit of senior citizens. The functioning of these accounts are similar to a normal savings account, but they offer a higher interest rate along with exclusive banking privileges for the benefit of the senior citizens.

See Also: Calculate Interest On Savings Account

Savings Account for Children and Minors: These accounts are opened for children by their parents to inculcate and nurture the savings habit and for introducing their children to banking facilities. These accounts do not require a minimum balance. Minors are allowed to operate these savings accounts under the supervision of parents, whereas children above 10 years of age can operate these accounts independently.

Zero Balance Savings Accounts: The zero balance savings accounts come with dual benefits of savings and current accounts. However, there are limits on the number of monthly withdrawals you can make from these accounts. Banks generally offer these accounts to people with poor economic background.

Features of Savings Account:

Some of the important features of a savings bank account are:

• A savings account is mainly used to keep surplus money that can be used any time in the future. It offers liquidity necessary for accessing funds in emergencies.
• The deposits in the savings bank account earn quarterly interest. The rates offered by banks vary across lenders. So, a savings bank account is a good alternative to place contingency funds.
• These accounts are opened under nationalised banks that are supervised by the RBI. So, deposits in these accounts are safe.
• The customers are also offered the facility to withdraw funds using an ATM/debit card. You can either withdraw cash from the ATM or directly swipe your debit card at POS of retail shops to make payments.
• An added benefit for the savings account holder is that they get discounts on bank locker rentals on maintaining a minimum quarterly balance.

See Also: Tips for Choosing a Savings Account when Interest Rates Increase

Documents Required for Opening a Savings Account:

Listed below are the documents that must be submitted by the applicant for opening a savings bank account:

• Proof of Age and Identity: PAN card, voter ID card, Aadhaar Card, Driving License, Passport.
•  2 recent passport sized photographs.
• Proof of Address: Utility bills, telecom bills, Aadhaar card, Passport.
• Senior citizens must provide proof of age for opening senior citizen account.
• While opening a bank account for minors, parents or legal guardian must submit their identity documents along with the minor’s birth certificate. 

How to Open a Savings Account Online?

A savings bank account can be simply opened and operated using net banking. Follow the steps given below to open a savings bank account:

• Log in to the online website of the bank of your choice. All banks offer the facility of opening account online.
• Fill the online application form with authentic personal details and upload copies of supporting documents like identity proof, address proof, income proof, photograph and so on.
• The details and the documents must be verified by the bank. Sometimes, the bank sends an executive to verify the residential address of the applicant. Once the bank approves your application, a bank account is created which can be operated online.

See Also: How Much Should You Save?

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