Savings Account

🏦 What is a Savings Account in Banking?

A Savings Account is a basic deposit account provided by banks to individuals for the purpose of saving money and earning interest on the balance. It is designed for personal use, making it easy to deposit, withdraw, and transfer money, while keeping your funds secure.

It’s ideal for salaried employees, students, pensioners, and anyone who wants to save money and earn a modest return.

🧾 Key Features:

• Interest earned on your balance (usually 2.5% to 4% per annum)
• Comes with ATM/debit card, chequebook, and online/mobile banking
• Limits on monthly withdrawals (in some cases)
• Minimum balance requirement varies by bank/type of account

❓FAQs about Savings Account

Q1: Who can open a savings account?
A: Any individual—resident or non-resident, salaried or self-employed, even minors (with guardians)—can open a savings account.

Q2: How much interest do I get on a savings account?
A: It depends on the bank, but typically ranges from 2.5% to 4% per year, calculated on daily balance and paid quarterly or monthly.

Q3: What is the minimum balance requirement?
A: It varies by bank and account type. Some require ₹500 to ₹10,000, while zero balance accounts (like Jan Dhan or salary accounts) require no minimum.

Q4: Can I withdraw money anytime?
A: Yes, you can withdraw using ATM, branch, cheque, UPI, or online banking. However, some basic accounts may have a monthly withdrawal limit.

Q5: Are savings accounts safe?
A: Yes, they are secure and regulated by the RBI. Plus, deposits up to ₹5 lakh are insured under DICGC (Deposit Insurance).

Q6: Can I have multiple savings accounts?
A: Yes, you can open savings accounts in different banks or even within the same bank, but it must be for genuine personal use.

Q7: Are there charges on savings accounts?
A: Charges may apply for:

• Non-maintenance of minimum balance
• Additional chequebooks
• ATM withdrawals beyond the free limit
• Some digital banking services

Q8: What documents are needed to open a savings account?
A:

• ID Proof (Aadhaar, PAN, Passport, etc.)
• Address Proof
• Passport-size photographs
• PAN or Form 60 (for tax purposes)