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A savings account is a deposit account held at a bank or other financial institution where you can store extra cash, earn interest on it and access it whenever required. A savings account is the most basic type of banking instrument used by an individual. It is among the safest ways to ensure that you can easily access your hard earned money when you need it. This type of account is operated by all banks that have a retail banking division whether it is a public sector bank or a public bank. To open savings account, simply visit your local bank with the requisite documents and complete the procedure for account opening. You can also apply online for savings account and the bank will get in touch with you to process your request. Every bank offers different accounts which differ in its features and benefits, based upon your personal savings account requirements you can choose the befitting option.

You can deposit either cash or cheques into the savings account and earn interest on such deposits, which credited to the account on a quarterly basis. The applicable interest rate offered on a savings account usually ranges from 3% to 6% and varies from bank to bank. You are allowed to make withdrawals either by visiting the bank branch and cashing a cheque/withdrawal slip drawn on the account or at an ATM by using a debit card linked to the account. In most cases, you are required to maintain an average minimum balance for the quarter or the month according to the bank's rules and regulations.

In the recent times, banks have come up with different types of savings account to cater to the customers from different age groups and work domains. Banks offer dedicated savings accounts for senior citizens, minors, women, salaried individuals, institutes, trusts and many more. According to your eligibility and requirement you can open any of the bank savings account mentioned below.

The common types of savings account include the following:

  • Regular/Basic Savings Account:

    A regular savings account features the minimum of facilities and basic rates. You have to ensure that you maintain the prescribed minimum balance in your savings account so as not to incur extra charges.

  • Salary based savings account:

    Also a type of savings account, this can only be opened by a salaried individual and most companies directly deposit the employee's monthly salary into this account. A key feature of the salary account is that it is a zero balance savings account, which implies that you do not need to maintain a minimum balance in the savings account. If the monthly salary is not credited into this account for 2 to 3 months, this type of account is automatically converted to a regular savings account which has minimum balance requirements.

  • Savings Account for Senior citizens :

    Only a senior citizen can open a savings account of this kind. Special banking privileges are offered to seniors who have a savings account or are interested in getting one. These privileges may include a higher interest rate or waiver on minimum balance requirements.

  • Joint Account:

    You can open a savings account jointly with any person who is related to you. This savings account is operated by more than one individual and for opening a joint account documents of both the applicants need to be furnished. Cheques drawn on such accounts may be signed by any of the account holders in order to be cashed.

  • Savings account for children/minors:

    Many banks offer savings account scheme for children below the age of 18 years. This is a type of joint account that can be operated by one or more minors in case one of the other joint account holders is a parent or guardian.

  • Women's Savings Account:

    This is a savings account with special features that specifically targets women. Having this type of account can enable women to easily apply for loans and other facilities at the most lucrative rates.

The most important benefit of opening a savings account is that it helps you inculcate a habit to save and you can earn interest on this deposited amount. Features of savings account vary according to the savings account you choose. Here we have enlisted few of the common features to help you understand the benefits for opening a savings bank deposit account:

  • Network branches and ATMs of the respective bank are easily accessible
  • Internet Banking and Phone Banking facilities for a quick check of balance and bill payment
  • Personalized cheques for enhanced security
  • No limits on the amount deposited
  • The savings account interest rates range from 4% to 7% p.a.
  • Facility to link loan EMIs or RD deductions through the savings bank account

Applying for a savings account does not require any income or employment criteria to satisfy. The eligibility criteria to satisfy to open a savings account are minimal. The eligibility criteria might vary from one bank to the other, but here are some common requirements-

  • Savings account can be opened by an Indian citizen, Non Resident Indian and also foreign nationals.
  • You should be over 18 years of age. This does not apply to savings account for minors.

Further, if you need to know whether you satisfy the savings account eligibility criteria or not, you can use PaisaBazaar's Savings Account Eligibility Calculator and check your eligibility online. You need to enter a few simple details about yourself and the calculator assesses your eligibility based on these details.

You can open a savings account with minimum documentation. Usually, the bank asks for KYC documents and passport photos along with the account opening form.

The documents to be submitted with a Savings account opening form include:

  • Passport size photographs
  • Identity and signature proof (Any one)- Passport, Pan card, Driving License, Voter ID card, Aadhaar card, employee identity card in case of government employees.
  • Address Proof (Any one)- Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/ electricity/ water/ credit card bill or Property tax.
  • For Hindu Undivided Family accounts (HUF):
  • Copy of PAN/ Form 60 of HUF
  • Declaration from the Karta
  • ID and address proof of Karta
  • Prescribed Joint Hindu Family Letter signed by the adult holders

The rate of interest for savings account, in case of most banks, ranges between 3-5%, however, some banks do offer higher and lower rates of interest. For example, Kotak Mahindra Bank offers an interest rate of 6% on salary accounts, whereas, State Bank of India offers an interest rate as low as 2.5% on its savings accounts. These rates are liable to change based on RBI directives and banks offering higher interest rates often have a higher minimum balance requirement of Rs. 10,000 and above.

Savings bank interest rates can be altered by the Reserve Bank of India (RBI) according to the economic conditions of the country. RBI is the Central Bank and controls the monetary policy of India. RBI can either limit money supply to the market or release money in the market based on the prevailing economic conditions of the country. To control inflation, the RBI can limit money supply to the market which will lead to higher interest rate on the savings account. The savings account interest rates vary according to the demand and supply of money in the economy. When the demand for money is high, the interest rates are pushed towards the higher side to attract more deposits. Therefore, if the bank needs more cash, it offers better interest rates to attract customers.

Paisabazaar.com provides its customers with an impartial comparison of banking products for better financial planning. By logging onto PaisaBazaar’s website you can at first check your savings account eligibility. Based upon your income the eligibility calculator displays savings account offers that are the best for you. Following which you can compare the savings bank accounts against an exhaustive list of parameters which helps to understand your requirements and choose the best saving bank account for yourself. Once the choice is made, you can apply for the savings account online and the executives of the concerned bank would directly get in touch with you.

With PaisaBazaar you have the added advantage:

  • Our user-friendly online platform helps you to check your eligibility for savings account
  • Finds the best savings account options for you based upon the inputs given by you
  • Lets you compare savings accounts against certain parameters
  • Finally, you can apply online for savings account on PaisaBazaar

Furthermore, our 24 x7 customer support service can guide you on every detail of the product so that you can make an informed decision while selecting a financial plan.

Just log on to PaisaBazaar and apply for a savings account in no time! Enter a few details related to yourself and get the best offers with just a click.

Just follow the following line of steps to apply for a savings account online with PaisaBazaar:

  1. The application process for a savings account starts with the eligibility calculator.
    You need to enter a few details into the calculator, such as
    • Your place of residence
    • You employment type and gross monthly income
    • And your personal details

    Once you are done with the eligibility form, click the submit button. When the form is submitted you will be redirected to a page displaying personalized Savings Account options for you to choose from.

  2. On this page you can compare the different Savings Account options against diverse parameters such as, interest rate, minimum account balance and a host of other benefits and features.
  3. After comparing the different savings accounts, you can decide on the option which meets your requirements in the best manner. Click on apply tab and fill in your personal details to complete the savings account application process.
  4. The savings account application is sent directly to the concerned bank. The bank gets in touch with you to open your savings bank account.

In case you need any assistance regarding the savings account application process, we are more than happy to help you! You can call us on our toll-free number or sent your query to us through an email.

The online application process is very simple and hassle-free, still if you are not that comfortable applying online, you can always pay a visit to the nearest bank branch for opening a savings bank account. You can follow these steps for opening a savings bank deposit account offline:

  1. The first and foremost step before you head to the bank is research. You need to devote some time to compare savings account of different banks, so that you get the best option as per your specific requirements. You can visit the bank websites or other financial websites to get an idea about the features of different savings accounts.
  2. When you have made a choice, you can visit the bank branch with KYC documents. You will need to take originals and copies of your identity proof, address proof, income / employment proof (if required), and age proof and photographs to the nearest branch of the bank.
  3. Approach the requisite counter at the bank which deals with the account opening process and get the account opening form.
  4. Go through the account opening form and fill it properly as required. Check whether you have filled in all details correctly and signed at the required places. When done submit the form along with the copies of your documents, i.e. identity proof, address proof, income / employment proof, age proof and photographs.
  5. The clerk at the bank will submit your application for processing. Your account will be functional within the time processing time as mentioned by the bank. Usually, a bank takes between 1 and 12 working days for opening a savings bank account.

Providing savings account to customers is the primary business of banks, therefore all banks, (both private and public sector) with retail services provide savings accounts. Some of the top choices of savings accounts include Citi BankAxis BankStandard Chartered BankIndusInd BankICICI BankState Bank of India and Associates, as well as others.

Banks offering highest interest rates on their savings account include:
 

  • Kotak Mahindra Bank

Kotak Mahindra Bank is an Indian private sector bank headquartered at Mumbai. The bank offers 6 % interest p.a. on Savings Account balance.
 

  • Yes Bank

YES Bank is a leading private sector bank which had started offering 7% interest p.a. on savings accounts. But, it has now slashed its interest rate to 6%, to be offered for an account balance of over Rs. 1 lakh.
 

  • Indusind Bank

Indusind is an Indian Bank established in the year 1994 and it is the first among the new-generation private banks in India. The bank offers interest rates as follows:

» For daily balance up to Rs. 1 lakh

4% p.a.

» For daily balance above Rs. 1 lakh and below Rs. 10 lakhs

5% p.a.

» For daily balance above Rs. 10 lakhs

6% p.a.

 
  • Deutsche Bank:

Deutsche Bank is one of the top global investment banks that offers unparalleled banking and financial services worldwide. To take care of customers’ investment needs, the bank offers savings accounts and FDs with returns at 4% and 8% per annum, respectively.

  • IDFC Bank:

IDFC Bank received its universal banking license on 1 Oct 2015 and has been raising the bar for service standards since then. The bank offers savings accounts at 7% interest rate per annum for savings up to 1 year.

  • IndusInd Bank:

IndusInd Bank offers a range of savings accounts at 6.75% interest rate per annum for savings up to 1 year.

  • Yes Bank:

Yes Bank believes in providing a satisfying banking experience by specially taking care of your needs from a savings account. The bank offers a higher return of 6% per annum for savings up to 1 year.

  • DBS Bank:

DBS is a leading financial services group in Asia. The bank has tailored its savings accounts range for customers looking for high returns on low balance. It offers interest returns at 7% per annum on a daily balance up to Rs 1 lakhs.

You can also open savings account at Indian Post Office by visiting the nearest post office branch. The features of a savings account at Indian Post Office include the following:

  • The applicant will have to pay Rs.20 as an account opening charge.
  • Minimum balance of Rs. 500 has to be maintained in accounts with cheque facility
  • For accounts without cheque facility, a minimum balance of Rs.50. is required
  • The savings accounts can be transferred between post offices
  • Savings accounts for minors aged 10 and above can be opened
  • Single and joint accounts can be opened
  • Savings account interest rate is 4% p.a.

It is very important to make a well-researched choice because with so many options in the market it is hard to make a choice by just looking at the broad lines. Therefore, it advisable to compare the savings account options against diverse parameters in order to maximize your earnings and earn better rewards. Here, we have listed numerous parameters which will help you in making the right choice.

Savings account interest rate

Although most banks offer 4% interest rate on savings bank accounts, there are many banks which offer a higher interest rate provided you maintains a minimum balance in the savings account.

Minimum balance to be maintained

Some banks require you to maintain a minimum balance in your savings account, while others do not. If you fail to maintain the minimum account balance, the bank might charge a penalty from you. Therefore, it is best to check what suits you the best, a savings account with minimum balance or a zero balance savings account.

Additional facilities

Banks offer a number of facilities with a savings account such as net and mobile banking. Such facilities help you to do bank transactions without visiting the bank, at the comfort of your home or office. Check for the facilities attached to the savings account before making a choice.

Debit card deals

Your savings bank account comes with a debit card. Since most banks extend offers and deals on their debit cards to lure new customers, you should check on the debit card schemes before choosing your savings account. Consider the bank which offers deals on debit cards which will be of your use.

Q. Do I need to be over 18 years of age to open a savings account?

Ans. Yes. If you want to open a singly held savings account, you need to be over 18 years old. However, a minor can be a joint account holder with an adult family member.

Q. Do all banks provide cheque facility?

Ans. Yes. All banks provide cheque facility however in case of many public sector banks, you do have the option of a basic savings account that does not have cheque facility. In that case, you can only withdraw money by visiting the bank and using a withdrawal slips available at the branch.

Q. Are there charges for an ATM card linked to a savings account?

Ans. Yes. ATM Debit cards carry an annual fee of approximately Rs.150 plus applicable taxes. However, many private sector banks waive the annual fee provided you use your Debit card for shopping transactions of a specified denomination during the year or you maintain the minimum average balance requirement specified by the bank.

Q. How can I check my savings account balance?

Ans. You can check your savings account balance online through net banking, or by visiting the bank or any ATM. Nowadays, mostly all the bank transactions can be done online and you need not visit the bank for the same. You can access your account online through net banking and also through mobile banking.

Q. Is saving account interest taxable?

Ans. Interest up to Rs.10,000, accrued on your savings account balance is tax free under Section 80TTA.