Savings Account

ALL ABOUT SAVINGS ACCOUNT

A.    Savings Account:

Savings Account is an interest bearing bank account that allows customer to access a wide range of banking services. These type of accounts typically pay a modest interest rate, their safety and reliability make them a great option for parking your hard earned cash you want available for short-term needs. Savings Account have some limitations on how often you can withdraw funds, but generally offer exceptional flexibility that’s ideal for building an emergency fund, saving for a short-term goal like buying a car or going on vacation, or simply sweeping surplus cash you don’t need in your checking account so it can earn more interest.

 

B.    Purpose:

The purpose of a savings account is to hold your money in a secure location that earns you a little bit of interest. Unlike checking accounts, you cannot spend money directly from a savings account. The main objective of savings accounts help restrict your chances of spending money impulsively and increase your financial preparedness in case of an emergency.

 

C.    Benefits:

Easy to access;

Secured in nature;

Low initial deposit;

Interest on balance;

Growth of investment;

Increase savings nature;

Building an emergency fund;

Financial preparedness in case of an emergency;

 

D.    Some Basic & Common Features:

Banks are offering a wide range of attractive features for the consumers, who wants to operate a Savings Account. Following are some basic and common features of Savings Account offered by most of the Banks:

-  Limited transaction;

-  SMS Banking;

-  Online Banking;

-  Internet Banking;

-  Cheque book facilities;

-  Debit Card facilities;

-  Convertible facilities;

-  Online payment facilities;

-  Transaction notification;

-  Electronic A/C statement;

-  Collect foreign remittance;

-  Life insurance facilities;

-  Safe deposit locker facilities;

-  Real-time gross settlement;

-  Automated clearing facilities;

-  Minimum documentation;

 

E.    Interest Rates:

Savings Account mainly is an interest bearing bank account. Most of the banks are offering 2% - 4% of interest rates calculated on account balance.

 

F.    Fees & Charges:

There are few of fees & charges may applicable to a Savings Account. Most common fees & charges are as follows:

-  Account maintenance fee;

-  Cheque book fee;

-  Debit card fee;

-  Internet banking fee;

-  Paper statement fee;

-  Account closure fee;

-  Other fees & Charges;

 

G.    Savings Account Opening Eligibility Factors:

Savings Account opening eligibility depends on many more factors. Most of the Banks are considering following eligibility factors before approving any Savings Account opening application.

 

       (a)   Who Can Open Account?

              Any individual and/or non-individual bodies with a valid source of income.

 

       (b)   Age Limit

              Most of the Banks are maintaining minimum 18 years age limit for the individual consumers.

 

       (c)   Professional Experience

There is no minimum professional experience required to operate a Savings Account in any Bank.

 

       (d)   Minimum Monthly Income

There is no minimum monthly income level to operate a Savings Account in any Bank.

 

       (e)   Proof of Identity

To open a Savings Account every individual and/or non-individual bodies have to provide proof of identity with supportive documents in accordance of respective Bank and applicable law of the land.

 

H.    Things to Consider Before Applying to Open a Savings Account:

Before applying to open a Savings Account, consumers should consider following things.

-  Interest rate;

-  Initial deposit;

-  Fees & charges;

-  Withdrawal limit;

-  Withdrawal frequency;

-  Transaction facilities;

-  Internet banking facilities;

-  Minimum maintaining balance;

-  Required documents list;

-  Compare all financers rates & features;

 

I.     Required Documents:

To open a Savings Account there are various types of documents are required. Proper documentation the only possible way to open an account. Most of the Banks are considering similar guidelines in respect to the documents required. A generic list of such documents has been provided below:

-  Complete account opening form;

-  Nominee;

-  Introducer;

-  e-TIN document;

-  Photograph (if individual);

-  Proof of age (if individual);

-  Proof of identity (if individual);

-  Proof of income (if individual);

-  Proof of address (if individual);

-  Proof of nationality (if individual);

-  Meeting Minutes (if non-individual);

-  Proof of business identity (if non-individual);

-  Valid permission / license (if non-individual);