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Savings Bank Account

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The savings bank account teaches you the value of savings. It offers you features which are an incentive to save. Your savings bank account offers you a lot of facilities, besides just parking your money and earning 4-6% interest a year.

What is a savings bank account?

You invest your money in a savings bank account. The money you invest is safe. You also get interest on the money you deposit in your savings bank account. This interest varies from bank to bank. Most banks offer 4-6% interest a year.

Why invest in a Savings Bank Account

You Save

The word "savings" in a savings bank account encourages you to save. You save your money for a rainy day.

 

Locker Discount

If you maintain a high balance in your savings bank account, you get a discount on locker fees on gold / valuables you store in the bank locker.

Free Insurance

Many banks offer you a free accident insurance plan, if you maintain a savings bank account with them.

 

Discount on Gold Coins

If you maintain a savings bank account with a high balance, you get discounts on the gold coins you purchase with the bank.

Eligibility for Savings Bank Account

If you are a resident of India, you can open a savings bank account. You can also open a savings bank account in the name of your minor child.

Features of a savings bank account

You get a locker discount

If you maintain an average quarterly balance of INR 50,000-INR1,00,000, your bank will give you a 10-25% discount for the locker fees on the gold or other valuables you deposit in your locker.

The insurance benefit

Some banks offer a free accident policy if you have a savings bank account with them. Your savings bank account is no longer a zero balance account with an ATM card.

You can buy gold coins from your bank

If you have a savings bank account with a sizeable amount say over INR 50,000-INR 1,00,000 maintained quarterly, you may get a 3-5% discount on the gold coins you purchase from your bank

Promotional offers and discounts

You have a lot of money lying in your saving bank account. You might be in for a pleasant surprise. You might just get a discount at your favorite eatery and on that awesome Doughnut they sell there.

How to Apply ?

You can apply for a savings bank account at your nearest bank branch. You have to fill the application form and submit the relevant documents.
You require proof of identity and address: passport/ driving license/ voter's identity card/ PAN card/ ration card/ recent utility bills/ credit card bill. This is necessary for the KYC (Know Your Customer), procedure.

 

Concepts & FAQ's Savings Bank Account

What is a Savings Bank Account?

As the name denotes, this account is perfect for parking your temporary savings. These accounts are one of the most popular deposits for individuals. These accounts provide lot of facility and flexibility for deposits and withdrawal of funds from the account. Most of the banks have rules for the maximum number of withdrawal within a particular period. At present the interest on these accounts is de-regulated by Reserve Bank of India.

This account gives the customer a nominal rate of interest and he can withdraw money as and when the need arises. The position of account is depicted in a small book known as 'Pass Book'. Such accounts should be treated as a temporary parking area because; the rate of interest is much less than Fixed Deposits.

The main advantage of Savings Bank Account is its high liquidity and safety. On top of that Savings Bank Account earns moderate interest too. The rate of interest is decided and periodically reviewed by the Government of India. These Accounts can be opened in the name of an individual or in joint names of the depositors.

The minimum balance to be maintained in an ordinary savings bank account varies from bank to bank. It is less in case of public sector banks and comparatively higher in case of private banks. There are some banks which offer no frills account.

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Frequently Asked Questions

At what frequency will the interest be paid to me?

Interest earned on your savings account balance shall be credited to your account on a half yearly basis in the months of September and March (varies from institution to institution).

Do I need an introduction from an existing account holder?

The bank needs no introduction from an existing account holder if you are submitting proof of identity and address documents, as prescribed. However if you do not posses any of the address proof document, then an introduction from a bank account holder, having satisfactory relationship of more than six months, is required.

Can I use any branch across India to operate my account?

Yes, you can access and operate your account from any branch of the bank across India. You can electronically transfer funds from one account to another account in any branch across cities with certain charges as applicable.

Can I have savings bank account in different banks?

Yes you can have savings bank account in different banks in your name.

What is APY and how is it used?

"APY" stands for "annual percentage yield." The annual percentage yield is the amount of interest earned in one year.

What are the services that are available through ATMs, Internet Banking, Phone Banking, and SMS Banking?

ATMs

  • Balance Enquiry

  • Statement Request

  • Cheque-book Request

  • Mini statements

  • Cheque and Cash Deposits

  • International usage

  • Make purchases at 51,000 merchant establishments in India and over 10 million worldwide

  • Fabulous discounts and great deals at various establishments

Internet Banking

  • Account Balance Enquiry

  • Transaction tracking and history

  • Cheque status inquiry

  • Funds transfer facilities to own account or third-parties

  • Cheque-book requests

  • Stop payment requests

  • FD renewal requests

Phone Banking

  • Available round the clock 24X7X365

  • Current Balance Inquiry

  • Last 5 transactions inquiry

  • Statement by fax, fax-back, fax to another number, fax to registered number

  • Statement by email

  • Cheque status enquiry

  • Cheque-book request

  • Balance as of a particular date

SMS Banking

  • Balance Enquiry

  • Details of last three transactions

  • Cheque payment status

  • Cheque-book request

  • Statement request

 

Savings Bank Account Articles

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Bank KYC forms may seek details of clients' religion

Saturday, December 21, 2019, 12:10 PM

Soon, banks may introduce a new column in 'know your customer' (KYC) forms for their depositors and clients to mention their religion. This requirement has arisen in the wake of the recent changes made to Fema Act regulations, which extend the benefits of opening NRO accounts and holding property to select religious minorities, excluding Muslims.

NEFT, RTGS transfer charges to be waived for savings account: RBI

Wednesday, December 18, 2019, 11:55 AM

After making National Electronic Funds Transfer (NEFT) system 24x7, the Reserve Bank of India (RBI) has now instructed banks to make all online payments done through NEFT and RTGS free of cost for savings account holders. Several banks have already made it free while others have been asked to do so from next month.
 

Over 70 Customers of UBI's Juhu Branch Lose Rs 20 Lakh in Six Hours

Thursday, December 12, 2019, 5:27 PM

In another incident of bank fraud, several customers of Union Bank of India(UBI) in Mumbai found out that their debits cards were cloned and transactions to the tune of almost Rs.20L were made by fraudsters. According to a report, more than 70-customers of UBI's Juhu Tara Road branch claimed that fraudsters had siphoned nearly Rs.20L in less than six hours from their bank accounts.

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What is IFSC code?

Monday, November 19, 2018, 10:52 AM

IFSC stands for Indian Financial System Code and is a unique 11 digit number, allotted by the Reserve Bank of India(RBI) to all banks and bank branches. You can find the IFSC code of your bank on the bank cheque book, Passbook and on the RBI website. It is very important to have the IFSC code for transferring funds using IMPS, NEFT and RTGS.

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Sunday, August 26, 2018, 9:26 AM

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