A Savings Account can be opened by a person singly or jointly with one or more other persons. The account holder can deposit money at his convenience. Withdrawals are generally limited to a specific number within a specific time period. Such an account can also be opened by certain welfare organisations that are non-profit oriented.
Opening a Savings Account
The applicant will be required to provide evidence of identity, address and age. PAN card, Aadhar card, Election card, passport, driver’s licence, electricity/telephone/property tax bills and consumer gas booklet (where issued by Government agencies), senior citizen card, photo ID card issued by Central/state Governments are accepted by banks.
Types of Accounts
Savings accounts could be Regular/Salary Linked/Privileged/Zero Balance (under the Pradhan Mantri Jan Dhan Yojana – PMJDY). Senior citizens are paid a higher rate of interest. Accounts could also be opened for minor children with operations under a guardianship arrangement.
What customers should know
- rate of interest (could be anywhere between 3.5% to 6% per annum);
- any condition regarding maintenance of a minimum balance and penal provision for failure to comply;
- charges for collection of cheques, issue of demand drafts/ cheque books, etc.
- appoint a nominee to facilitate smooth settlement of account at the time of death of the account holder
