A retirement account is a low-risk and easy way to put money together for the future. Year after year, customers are eligible for the interest paid on their deposits. Customers must apply their KYC records – address and identity evidence – for authentication while opening a savings account.
Customers are eligible to open a savings account after the bank checks their records.
Eligibility for open a savings account:
Customer needs to fulfil certain criteria-
- Individuals above the age of 18
- Senior citizens’ savings account: You must be at least 60 years old
- Children’s savings account: You must be under the age of 18 and have a guardian/parent.
Types of savings account:
Although there are several various types of savings accounts, the bank account, money market account, and certificate of deposit are the three most common.
Savings accounts, on the other hand, come in a variety of shapes and sizes. There are usually basic variations on the main concept. Depending on the claimant, most banks have similar variations. Here are a few of the different types of savings accounts available at any bank:
- REGULAR SAVING ACCOUNT: This is the most basic and widely used form of savings account. You must keep a minimum deposit balance for a daily Savings Account.
- SALARY-BASED SAVING ACCOUNT: Banks open these accounts at the request of businesses who need a payment disbursal network.
For these types of accounts, banks deliver preferential rates and conditions. When the loan disbursal date comes, the bank takes money from the business account and distributes it. The bank can transfer the account to a normal account if the payment is not paid for three months in a row.
- ZERO BALANCE SAVING ACCOUNT: This account is equivalent to a traditional Savings Account, but unlike that account, there is no need to hold a minimum balance. It does, however, have an ATM/Debit Card for day-to-day use.
Although withdrawal amounts are fully restricted, there will be no penalty if your balance falls below the required minimum.
- SENIOR CITIZENS SAVINGS ACCOUNTS: The accounts work in the same manner as normal savings accounts, but they give senior citizens significantly higher rates of interest and banking rights.
- WOMEN’S SAVING ACCOUNT: These accounts have unique features—discounts on most transactions, reduced interest rates on deposits. Account-holders, on the other hand, get some perks for shopping and other purchases.
- MINOR SAVING ACCOUNT: This is a Savings Account designed specifically for parents who wish to save a certain amount of money for their children. Often, if the adult decides to give the child access to the account with a debit card, this is a nice way to teach children about money management.
There is no minimum balance limit for these accounts.
The savings account documents needed to open a saving bank account:
- PAN Card
- Voter ID Card
- Bank Passbook
- Ration Card
- Driving License
- Electricity Bill/ Telephone bill
- Bank Account Statement
- Voter ID Card
- Ration Card
- Salary slip
- Credit card statement
- Letter from reputed employer
- LIC Policy
In addition, the client must send two passport-size photos as well as the bank’s account opening form, which you can get through the bank. Existing customers can open a savings account online via the bank’s mobile app or via their net banking account.
Following receipt of the papers, the bank will check them and determine if the applicant is eligible to open a deposit account with them.
You’ll still need to have some simple biographical details if you want to open a savings account:-
- Email ID
- Phone Number
Features of saving account:
There are lots of features and benefits of saving accounts. It is a safe place to keep the cash.
- Earn interest rate
- An interest rate on savings account can range from 3.5% to 7% p.a
- Online banking and mobile banking are also easily available
- Pay bill from your savings account
- Easy Transaction
- ATM Facility
- Low Maintenance charges
Interest rates on savings accounts from the best banks:
- YES Bank= 6.25%
- Canara Bank= 4%
- Bank of India= 4%
- Indusind Bank= 6%