If you are earning steadily monthly, and require a place to park your hard-earned money, then Savings Accounts are ideal. It is a primary banking product that promotes the saving habit among account holders. Besides holding funds, it also offers other services for effective financial management. Despite its popularity, many wonder what Savings Accounts all about is. This is because over the years the account has undergone several changes.
Thanks to digitisation, operating Savings Accounts is easier today. You need not visit the bank for performing numerous tasks. Instead, online channels act as portable mediums. If you want to open one, go online and open one instantly. Before doing so, understand how it works:
Deposit amount
The primary purpose of online Saving Account opening is safeguarding your funds. Hence, it offers flexibility concerning the deposit limit. You can park up to Rs. 10 lakh annually. But when it comes to minimum balance, there are limitations. Commercialised banks allow up to Rs. 10,000 as the minimum balance. If you want to opt for a lower limit, then try small-scale and regional banks with a minimum requirement of Rs. 2,000.
Opening process
If you open Savings Account online, the process gets done quickly. It involves simple steps with minimal documentation. Also, you need not waste time travelling and queueing up to get everything processed instantly. You only need to gather relevant documents proactively. When you have such details and paperwork handy, the only task is to submit them on the website or app and activate your account.
Types
Choosing the right Savings Account is important to use it optimally. Banks have different categories to meet your requirements. These include exceptional services and features to meet specific needs. The standard types include Regular, Salary, Women, Minor, and Senior Citizen Savings Accounts. Make sure you check the benefits and eligibility criteria of each before selecting a suitable option.
Requirements
Now, you need not prepare much for a Bank Account. Banks have minimal formalities to facilitate banking for everyone. They only require essential information like your name, birth date, and address. The Reserve Bank of India mandates this for handling the KYC details. After filling in the information in the application form, you can attach the supporting documents for verification purposes.
Benefits
The highlights of Savings Accounts are the perks. The account is not only a space to store funds but also a medium that allows you to transact quickly. You receive security, nominal interest, and liquidity to manage your finances. Moreover, the Online Banking facilities like Banking apps make quick payments and transfers a possibility.
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