A savings account is an interest providing, deposit account, offered by a bank or any other financial institution. They pay a decent amount of interest on the amount deposited by the account holder. It provides safety and reliability to the amount deposited in the bank. They sometimes have a limitation on the number of times the money can be withdrawn from the account. However, it offers good flexibility which is ideal for people who have additional cash lying around.
Key Features of Savings Account:
It offers you a place to keep your money. This means you can keep a portion of money separate from your everyday banking needs. The bank's security features will guarantee the safety of your investment which cannot be provided the confined walls of your home. Apart from keeping your funds safe they also offer you an interest which leads to the growth of your savings. In the case of a current account, this facility is absent. The money parked in your savings account is very liquid compared to other sources of investment. The facility of transferring money from one savings account to another is instantaneous these days. Therefore you can easily deposit the cash in the account of another if required.
There are two methods of applying for a savings account. One is the online method and the other is the offline method.
Online Method: By applying online you experience an easy and hassle-free process of opening a savings account. When you apply online you also have the option of the doorstep documentation process. Someone from the bank will come to collect your KYC documents.
List of KYC Documents: Voter ID card, Passport, Driving License, NREGA Job Card and Others, Letter issued by National Population Register containing details of name and address, Aadhar card, PAN card is mandatory
Offline Method: You can visit the nearest bank branch with the list of KYC documents mentioned above.
Different banks offer different types of savings account. This helps the customer in getting the best savings account as per their needs. Some of them have a minimum balance requirement and some offer a zero balance account. It's a good practice to find out about all the handling charges if involved. In case you do miss out on checking out these details, banks have become proactive these days. They provide a full set of information to the customers to enhance the experience.