It is a deposit account offered by a bank where you can keep your money safe and earn interest at the same time. Although the interest rates offered are not very high but they are better than nothing.
Following are the various benefits of savings account
- Provides you liquidity: –One of the major benefits of savings account is its liquidity. You have complete access to your money and can make deposits and withdrawals anytime. When you open a savings account with a bank, it provides you with a debit cum ATM card. You can use this card not only to withdraw cash anytime (24X7) but also use it to pay for your shopping bills both online and offline.
- Provides safety: –Your money in savings account is completely safe with the bank. The Reserve Bank of India has strict regulations in place to endure the safety of the money. Also, banks provide deposit insurance where an insurance of up to Rs 1 lakhs is given on every savings account.
- Earn interest up to 7%: –Most of the banks offer interest at the rate 4% on their savings account while some of the digital savings accounts also offer interest of up to 7% to lure customers.
- International debit cards: –Some of the banks offer international debit cards with selective savings account which can be used to withdraw cash from ATMs abroad free of cost.
- Online transaction facility: –These days most of the banks provide net banking facility which makes the day-to-day handling of the bank account very convenient. You can transfer funds, make fixed and recurring deposits, request for a cheque book and much more online. Nowadays, banks enable you to bank conveniently without the need to visit your bank branch.
- Track your transactions online: –You can track your expenses online using net banking or mobile application.
- Helps in getting loan: –If you have a savings account with a bank, it can help you to avail a loan as you already have a history with the bank. Thus, making it easier to get a loan from a bank where you already have a savings account.
- Easy to open: –Nowadays, banks have made it too easy to open a bank account. You can also open a savings account instantly from the convenience of your home.
How one should choose a best savings account?
On the face of it, all savings accounts may look the same but they differ in terms of interest rate offered, minimum quarterly balance requirement, service charges and customer service. Before opening a savings account make a comparison and opt for the best savings account available.
What are the eligibility criteria for opening a savings account?
Anybody who is above 18 years of age is eligible to open a savings account. In fact now banks offer savings account for kids as old as 10 years. These accounts can be managed independently by the kids with / without the supervision of the parents.
What are the documents required to open a savings account?
Passport, voter Id, permanent driving license, Permanent Account Number card, Aadhaar card, NREGA job card
Passport, Voter ID card, Electricity or water or telephone bill, gas pipeline bill, property tax bill, Aadhaar card