Savings Account in India : comparison of various types of savings account offered by leading banks in India
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Savings Account FAQs
Define Savings Account?
Savings Account not only keeps your money under safe custody but also allows you to earn interest on the money deposited. It promotes savings habit among account holders. One can open these accounts with banks and post offices.
Who can open a Savings Account?
Indian resident, Hindu undivided families (HUFs), Trusts, Associations, Societies and clubs are eligible to open a Savings Account. Minors too can open a Savings Account but only with their guardian.
Is it necessary to maintain minimum deposit with the Savings Account?
Yes, banks and post offices require a minimum deposit of Rs.500 to Rs.5,000. Some banks also allow zero deposit Savings Account. The minimum deposit required differs from bank to bank. Mostly, the nationalized banks require lower minimum deposits.
How can a Savings Account be opened with the bank?
To open a Savings Account you can either apply online or call the customer care centre of the bank where you want to open an account. You can also personally visit the bank and submit your application with required documents.
How much interest can I earn on my Savings Account? Who can be co-applicants in a Savings Account?
Different banks offer different interest rates on their Savings Account. Usually the interest rate on the Savings Account range between 3 to 4 percent per annum.Any person above 18 years of age can be a co-applicant in a Savings Account.
How is the interest accumulated on my Savings Account paid?
The interest accumulated on your Savings Account balance is credited to the same account. The process takes place on a half-yearly basis in September and March.
How can a Savings Account be operated?
Money can be withdrawn from the account using cheques, ATM cards, etc. Most banks offer Internet banking option that allows you to transfer funds online. Also there is an option for phone banking.
Can the interest on my Savings Account be as high as the deposit?
Interest on Savings Account is lower when compared to fixed account. However if you wish to earn higher interest rate, you can issue standing instructions to your banker to transfer any amount above a fixed level to:
- Fixed Deposit account, or
- Recurring Deposit account.
How are senior citizens benefitted
For senior citizens banks offer higher interest rates but only in case of fixed deposit accounts.