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A Saving Bank account (SB account) is meant to
promote the habit of saving among the people. It also facilitates safekeeping of
money. In this scheme fund is allowed to be withdrawn
whenever required, without any condition. Hence a savings account is a
safe, convenient and affordable way to save your money. Bank
deposits are fairly safe because banks are subject to control of the
Reserve Bank of India with regard to several policy and operational parameters. Bank
also pays you a minimal interest for keeping your money with them.
Features:
The minimum amount to open
an account in a nationalized
bank is Rs 100. If cheque books are also issued, the minimum
balance of Rs 500 has to be maintained. However in some private or foreign
bank the minimum balance is Rs 500 or more and can be up Rs. 10,000. One cheque book is
issued to a customer at a time.
A
Savings account can be opened either individually or jointly with another
individual. In a joint account only the sign of one
account holder is needed to write a cheque. But at the time of closing an account, the sign of the
both the account holders are needed.
Return
The interest rate of savings bank
account in India varies between
2.5% and 4%. In Savings Bank account, bank follows the simple interest method. The
rate of interest may change from time to time according to the
rules of Reserve Bank of India. One can withdraw
his/her money by submitting a cheque in the bank and details of the account, i.e
the Money deposited, withdrawn along with the dates and the balance, is recorded
in a passbook.
Advantages
It's
much safer to keep your money at a bank than to keep a large amount of cash in
your home. Bank
deposits are fairly safe because banks are subject to control of the
Reserve Bank of India with regard to several policy and operational parameters.
The federal Government insures your money. Saving Bank account does
not have any fixed period for deposit. The depositor can take money from his
account by writing a cheque to somebody else or submitting a cheque directly. Now most of the banks
offer
various facilities such as ATM card, credit card etc. Through debit/ATM card
one can take money from any of the ATM centres of the particular bank which will be open 24 hours a day. Through credit card one can avail shopping facilities from any shop
which accept the credit card. And many of the banks also give internet
banking facility through with one do the transactions like withdrawals,
deposits, statement of account etc.
How
to open
Savings Bank Account can be opened in the name of an
individual or in joint names of the depositors by filling up the appropriate
forms. A minor who have completed ten years of age can also open and operate
the account. At the time of opening an account one must submit the documents
like photocopy of passport or Electoral card, Postal identification cards as address proof
and two passport size photos.
Most banks also require an
introduction for opening an SB account. The introduction may be obtained either from an existing
account holder or from a respectable citizen, well known to the bank, who should
normally call on the bank and sign in the column specially provided for the
purpose of introduction in the account opening form.
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