A savings account can be defined as a deposit account that you can open at any retail bank. You can deposit your idle funds in this account and use the same as and when required while also earning interest on the balance maintained.
From managing your everyday expenses or saving for an emergency, a savings account is an excellent option. There are savings account for senior citizens, women, and children with benefits such as higher interest rate, discount on locker charges and unlimited withdrawals through ATMs.
If you are opening a savings account for the first time, we bring you a list of the different features of a savings account:
1. Nominal Interest Rates
Savings account offer a nominal interest rate ranging from 3 to 7%. The interest is calculated on a half-yearly basis by most banks.
2. Offers a Base for Carrying Financial Transactions
A savings account can be used to send and receive payments, and it serves as a base for all your transactions. Every transaction in a savings account can be either done by net banking, debit card, cheque, or withdrawal slip.
3. No Age Restriction
There is no age restriction for opening a savings account. Minors can open a savings account with the natural guardian operating their account.
4. Easy Account Maintenance and Low Charges
Maintaining a savings bank account is extremely easy. You can maintain your transaction records with the help of a passbook.
Documents Required for Opening a Savings Account
For opening a savings account, you are supposed to submit the following documents:
- Identity and Age Proof
A registered document that has been issued by the Government of India is regarded as authorized proof of age and identity. The document must contain your full name, along with a recent photograph. Documents that banks accept have been mentioned below:
- PAN Card
- Voter ID
- Driving License
- Aadhaar Card
- Proof of Residence
Any registered document that the government authority has issued should display your complete address. Documents that are considered as proof of address have been mentioned below:
- Driving License
- Voter’s ID Card
- Utility bill in the name of the applicant
- Senior Citizen’s Card
The senior citizen savings account is offered by various banks to its customers. Those who wish to open a senior citizen account must submit their proof of age to the bank.
How to Open a Savings Account
Opening a savings account is quite simple. You can either choose an online or an offline mode depending upon your comfort.
1. Opening a Savings Account Offline
Follow the steps listed down below for opening a savings account in an offline mode:
- Check different banks and compare their interest rates or the bank’s official website before opening your account.
- Visit the nearest bank of your choice and carry the photocopy of your documents like identity proof, age proof, income/employment proof and photographs.
- The next step is to fill up the application form along with the copies of the supporting documents.
- After the successful verification of your details, your account will be opened and functional within 1 to 12 working days
2. Opening a Savings Account Online
Opening a savings account online is extremely easy and a hassle-free process the follow three basic steps:
- Check out the website of the bank in which you are planning to open a savings account.
- Fill out the application online and submit the digital copies of your address proof, identity proof, age proof, income/employment proof and photographs.
- After the verification of your details, you will be able to operate your savings account online.
Suppose you are opening a savings account for the first time. In that case, you should consider the option of opening your savings account with credible banks like Axis Bank and benefit by opening a digital savings account. The digital savings account offers features such as a virtual debit card, cashback on online spends, and customer verification via Video KYC.
Go digital and make your banking experience hassle-free!