Saving Account (Types, Benefits, & Document Required)

What is a Saving Account?

A Savings account is a type of bank account in which you can deposit your money and also you can withdraw it whenever you require your funds. It is a safe and you can open this account at any bank.

Depositing your money in a savings account is the most liquid investment. So it is easy for you to withdraw your money from your account whenever you require it.

Even now-a-days, you can open a savings account online and you can use a savings account for online transactions. This account gives higher interest rates and you can operate on your mobile, laptops etc.

 

Why do you need to open a saving account?

You need to open a saving account to save your excess money for future use. By saving you can make payment to any person through cheque.

A Savings account also helps your money from theft. You will receive a debit card for making payment for purchase in the market, so it is comfortable to carry a debit card.

 

Who can open a savings account in a bank?

Anyone can open a savings account individually or jointly. But banks require a person to be a citizen of the country.

If you are a foreigner in the country for a long time living there for business or other work then you can also open a savings account.

Any individual who is eligible can open a savings account in any bank by filling application form and KYC documents.

 

What are the types of savings accounts?

Following are the types of Saving Account

Regular/Basic Saving Account:

This type of saving account provides the basic facilities. There is no limit to the amount of money deposited but in some banks you need to maintain minimum balance.

If you fail to maintain minimum balance then the bank can charge penalty charges.

 You will be issued a cheque book, debit card for withdrawal from your account or make payment.

Salary Account

This type of saving account is only opened for the employee. The employer directly deposits the salaries & bonus etc of its employees in this account.

Various benefits are given to the account holders like high rate of interest, zero balance, free cheque books and draft etc.

If in this account salary is not credited for 2-3 months then this account changes to basis/regular account.

Saving account for seniors

Person who is above 60 years of age can open this account. Various benefits are given to the account holders like higher interest rate, special benefits on term deposits.

Joint Account

This type of savings account is controlled by more than one account holder. Any person in this account can withdraw or deposit the money.

Women savings account

This type of saving account can only be opened by women. Special benefits are given such as higher rate of interest, personal insurance coverage etc. 

Minor Account

In this type of savings account there are Joint holders in which one of there is a minor and other is guardian or parent.

After the attaining of 18 years minor can visit the bank to change minor account to regular saving account. 

Pradhan Mantri Jan Dhan Yojana Saving Account

The holder of this account gets insurance cover of Rs. 30000 and accidental cover of Rs. 100000 with no charge.

Under this account individuals are linked with a Rupay debit card and they can withdraw a maximum of 4 withdrawals in a month and they do not require a minimum balance.

 

What are the benefits/ Advantages of saving accounts?

Earning Interest

The most important benefit that you can get when you deposit your money in a savings account is that you will get interest on your deposited amount. Most of the banks offer higher interest rates and special benefits.

Safety of your money

Depositing your money in a savings account is completely safe with banks. Even banks provide you deposit insurance upto Rs.1 lakhs.

Helps for getting loan

It is beneficial for you to have a savings account with a bank. A savings account helps you to take a loan from banks when you require it as you already have your account in that bank.

 

What are the disadvantages of saving accounts?

Interest Rate Changes

Interest rate on saving account change as per the Central bank guidelines.

Minimum Balance

In a savings account you need to maintain a minimum balance and if you fail to maintain then the bank can charge a penalty. So while opening your savings account you should firstly check the minimum balance requirement and you should maintain it to avoid penalty.

 

What are the documents required for opening a saving account?

To open a saving account firstly you have to fill the account opening form. You can download it from the bank website or you can directly visit the bank.

Along with the opening form you have to submit your latest passport size photographs.

You also have to submit certain documents to verify your identity proof and residence proof.

Here is the detail of document required for opening saving account

Identity Proof

You can submit any one of the below as Identity proof

• PAN Card
• Aadhaar Card
• Voter Card
• Passport
• Driving Licence
• Employee ID

 

Residence Proof

You can submit any one of the below as residence proof

• Aadhaar Card
• Voter Card
• Utility Bill (Electricity, Water, Telephone)
• Passport
• Driving Licence
• Bank account Statement or Passbook
• Ration Card

 

How to open a savings account online / offline?

You can open a savings account both online and offline.

For online mode you need to visit the bank website to find the process.

For offline you have to visit the bank branch from where you want to open a savings account with the above required document along with the latest passport size photograph.

 

Conclusion

Opening a savings account is very important to save your money in the bank with security and you can also avail other bank benefits from this savings account. You can select any of the above types of savings account as per your necessity.