Savings Account is the most frequently used account in India. The savings account definition says that it is a bank account that promotes saving your funds. If you are an individual planning to keep your future secure, a savings account is the perfect go-to.
The Savings Account provides you with interest on all your funds. Its other features, like limited withdrawals, regular deposits and provision of interest, make it the best alternative for a large population in India.
The savings bank account meaning has a vast explanation. Let us begin with the different types of savings accounts.
Here is a detailed note on savings account meaning and different types of savings accounts to help you get well-versed with them.
A regular savings account is like a locker where you can save all your funds. It does not ask for frequent deposits and works on its basic terms and conditions. It assures the safety and security of your money.
The salary-based savings account acts as a payment disbursement platform for companies. The banks open it at the company’s request. When salary distribution arrives, the bank withdraws the payment from the company’s account and transfers it to the employees. Salary-based accounts do not require a minimum balance. Also, if a salary is not credited continuously for three months, the account is converted to a regular account.
A zero-balance savings account has combined current and savings account features. There are limits on the withdrawal amount. However, it does not charge a penalty if your account falls below the minimum balance required.
What is a savings account for women?
Women’s savings account caters to banking and investment facilities for women. It comes with unique features and benefits for her. These include lower loan interest rates, waving off DEMAT account charges and special discounts.
The main motive for curating a minor’s savings account is to educate the children about banking. If the minor is under 10, the account is operated by a guardian. After ten years of age, the child can manage the account. When the child turns 18, the account is converted to a regular savings account.
The Senior citizen’s savings account is similar to the regular savings account. Yet, it offers many benefits and privileges to senior citizens. They get a higher rate of interest. The bank links the account to other old citizen savings schemes. It helps them get funds from their pension and retirement accounts in a single place.
A savings account works in a very systemized and organized way. FDIC (Federal Deposit Insurance Corporation) insures the deposits you make in the savings account. It provides only up to Rs 5,00,000 per depositor, insured bank, and ownership category. The savings account then offers you interest on your savings. The compound interest is deposited in your bank account, and you earn a new balance.
After knowing about what is a savings bank account, the article now focuses on the process of opening a savings account.
You can open a savings account through both online and offline modes.
To Open a Savings Account Online
Jupiter offers a wholly digital and hassle-free account opening with no minimum balance requirement and hidden fees. It is the best platform to experience transparent and precise banking.
To Open a Savings Account Offline
Anyone within the nation is eligible to open a savings bank account. All people holding Indian citizenship and foreign nationals living in the country can have savings account for long-term or business purposes. Foreign residents residing in India have different provisions and documentation processes to open a savings account. It also requires linking PAN to your Aadhar Card and phone number.
To open a savings account, you require the following documents –
A savings account has multiple benefits and features.
This savings account has a variety of features-
● Jupiter offers the fastest service and opens an account in 3 minutes
● It supports paperless onboarding
● It is a zero balance account with no annual fees and hidden charges
● The Digi bank gives 1% rewards on Debit Card & UPI transactions.
● Its 24/7 in-app customer support makes it the most effortless and effective banking store.
● Jupiter also offers a Visa Signature Debit Card issued by Federal Bank
● It is a savings account powered by Federal Bank
Federal Bank Savings account – Powered by Jupiter does not require a minimum balance fee. It gives you real-time rewards and makes banking super easy.
Opening a savings account is completely free for all. However, other costs include minimum balance requirements and monthly or annual fees. The fee is withdrawn from the account. Hence, an overdraft fee is possible if the account balance is zero.
Some banks waive off all these fees if you have an account in the bank. But, they charge if you close an existing account to open a savings account.
The savings account also has a cash withdrawal limit. The limit depends upon the bank where you hold a savings account. Thus, you need to visit the official bank website to learn about your bank’s savings account limit. You can also connect to any officer from the bank in person or call to know the exact digits of the boundary. However, every bank has a flexible withdrawal limit in a savings account.
What is a savings bank account if there is no need for it?
Savings Account holds great importance in the Indian banking system. It works like an E-locker that stores your funds and withdraw them anytime. It also offers a compound interest on all your savings. It also facilitates online transactions, cash withdrawals and much more. You can even make payments and pay bills through your savings account.
The savings bank account meaning shows that it works in the interest of all. It allows you to be future-ready by handling your funds safely and securely. It takes you far away from the standard banking features. A savings account gives you access to mobile banking, net banking and online transactions. It also enables you to earn profits on all your savings. Thus, having a savings account simplifies your life and serves as a one-stop solution to all your banking essentials.
It depends upon the bank. However, the essential savings account services you can access through net banking include payment transactions, shopping online, money transfers and requesting account statements.
You can have only one primary saving account in a bank.
You can withdraw money from anywhere within and outside India. However, there may be charges depending on the norms of the ATM.
Services like cheque status, balance enquiry and transaction details are accessible through phone banking.
A savings account is a virtual tomb that takes care of your funds.
