What is a savings account? Savings Account is an account which is offered by a bank or a financial institution and gives interest over the amount kept in the account. You can also call it as an interest-bearing deposit account which is used for saving purposes. There are many types of accounts which are offered by the banks and financial institutions. You can choose from them for all your financial needs. Savings account is the most popular account when it comes to individuals. You can only open a savings account as it needs the least possible documents. This savings account is a financial account which would help you to save some money in liquid form which can be exchanged for any transaction but not directly unless used by cheques or cards. It is a kind of liquid assets which help you earn returns in the form of interest. People who have a fixed income, get it in their savings account and then dedicate or allocate funds to different accounts to mobilize or channelize their funds.
A savings account that helps you to get as much returns on your deposits is the best account. This can be a bank or a financial institution that offers you more interest than what the general banks and financial institutions don’t. There are a few banks that do such transactions but in a different manner. The conditions that need to be satisfied are different from the regular banking norms.
Banks and financial institutions are governed by a common regulatory body known as RBI which is an abbreviation of Reserve Bank of India. All the banks and financial institutions come under this body and the rules are laid by it to ensure there is complete transparency among all. In fact, the minting of money is also under this common body. This means there is no secrecy that can be maintained by any bank or financial institution while opening a savings account. All the details would be almost similar apart from a few rules that can be a preference for the customers.
Preference is completely dependent upon the customer and you cannot gage which one of them would be most liked by them. Therefore, you should be ready with a few of them to ensure you get as many customers possible to get the maximum benefits.
ATM cards are Automated Teller Machine cards which are also known as plastic money. This money is virtual in nature and you get a card to represent your savings bank account. It comes in various forms to help the customers know about it. For instance, you can get a shopping card or a reward point card or a fuel card to name a few. These cards are chargeable and non-chargeable depending on the type of the card.
We all wish to get a good withdrawal limit on such cards. These cards have a limit set as per the customer account and its relationship with the bank branch. The better the relationship and stronger the account, the higher is the withdrawal limit and the frequency also changes accordingly. If the frequency of withdrawals exceeds the maximum limit, a charge is levied by the bank on the account that would be debited without any prior notice to the customer as all such terms and conditions are already explained to them at the time of account opening.
Fund transfer is an important part of a savings bank account and is very common in usage these days. With the ever-increasing use of internet for all transactions, you need a fun transfer option to move funds from one account to another and this can be from and to any bank. You can transfer it to any other person’s bank account as well. All you need are a few details to distinguish the identity of the bank account and you are good to go.
Banks provide many types of offers and benefits while opening a savings account. These offers lure the customers to open a savings bank account with their bank. Such offers may be good for a few customers while it can be a waste for others. Therefore, all such things are a matter of preference.
When you keep funds in a savings bank account, you get some interest earnings over it which is tagged as your income while you pay the income tax. This savings interest is usually 4% annually. Some banks have now started to pay an interest rate of 6% annually. However, such interest is applicable upon a fixed amount kept in the bank account for a fixed period. These banks also charge you a penalty in case if you do not maintain a minimum balance as agreed at the time of opening the savings account.
You should compare savings account before you open it so that you know you are going for the best available options. You can open multiple savings bank account online or offline, but it would not solve your purpose. In fact, you may be charged dormant fees or no minimum balance charges in case of minimum or no usage. You can compare the best savings account rates to know more about the bank and its facilities. Usually the savings account interest rates of all banks in India is almost same barring a few of them.
The sole purpose of a savings account is to keep some money aside which is not used on daily basis and earn interest over it. This is the reason, there are withdrawal and deposit limits upon it. For regular transactions, you have other types of accounts that can be used. The only disadvantage of a savings account is that cash is readily available in liquid form which can be used for any transaction and can be misused as well on things which need minimum or no attention.
Almost all banks offer the best savings account to its customers. But it completely depends on the customer and their preferences to choose the bank they feel is right for them.
Savings account works in many ways which can help you to manage your funds on regular basis. All you need to do is find the best available bank to open a savings account. You can open the account by visiting the bank personally or by using the online mode. You can then make deposits in your account over the counter or set automatic transfer to or from other accounts, make bill and credit card payments or even get your paycheck into the account in full or partially. You can keep a tab on your funds using the online method or the passbook update. Use of ATM can also be done to get liquid funds into your hands.
As per the financial analysts and advisors, you should have at least 3 to 4 months’ worth of money in your savings account at any given point in time. This would help you to fund your regular expenses for a few months in case if your job is lost or if you face any issues. Savings account is also a liquid account and you can access it at any point when you need the money. However, many advisors also feel that you should have more money kept into the account for a far sightedness. But the same lot also believes that you should invest the excess money into higher interest paying accounts or investments such as fixed deposits or SIP (Systematic Investment Plans) or Mutual Funds as well.
Q. How to Apply for Best Saving Account Online?
A. You can apply for the best savings account online by simply visiting their official website.
Q. Why is it Important to Have a Savings Account?
A. it is important to have a savings account so that you can set aside some extra cash and keep it for your bad period or times when you need it the most.
Q. How can I make a gold investment or silver investment with my savings account?
A. You can purchase gold for investment using the bank offers and products or directly buy it from the market by using the modes given for the savings account.
Q. What is a zero-balance saving account?
A. A zero balance saving account means you need not keep anything in your savings account as a minimum balance. You would not be charged any fees for not maintaining the balance.
Q. What is the saving account interest rate for any bank in general?
A. You can get a saving bank account at an interest rate of 4% annually.
Q. What is the saving account limit?
Q. What is the saving account limit? A. There is no upper limit to a saving account, but the lower limit is set by the bank depending on your relationship with the bank.
Q. What are the types of savings account?
A. There are many types of savings account that you can open. For instance, joint savings account, children savings account, students savings account, salary savings account, and many more.
Q. Can I get a separate bank account in the same bank?
A. Yes, you can get a separate bank account number in the same bank if need be.
Q. Can I make investments from my bank account on monthly basis?
A. You can make investments from your bank account by setting up instructions for any transactions that happen daily, weekly, monthly or annually.
Banks and financial institutions keep on rolling offers and rewards on the savings accounts so that they can get as much participation by the account holders. They keep on running promotions to help open more accounts for the people in relation to the current account holders so that the business can flourish. The more number of accounts you have the better the business of the bank. But from a customer standpoint, you can get funds transferred from your account to another account in the same bank without any extra charges and the transfer happens directly for usage. Banks also offer credit cards to the customers which helps them to get credit for a fixed number of days without paying anything extra to the bank. It is a great way to keep your liquidity rolling for a few days without paying any extra interest rate.
The offline mode of saving account transactions are almost over now. With the advent in technology, you can now use your savings bank account online on your smart phones. You need not visit the bank branches for every small detail. In fact, the bank statements can also be seen online and be emailed for any transaction purposes. Banking has taken a step ahead and you need not waste your time visiting bank branches and finish your banking transactions while on the go. You can also set standing instructions to transfer cash to various other accounts or make bill payments so that you need not do it manually each month. It is difficult to spare time and visit a bank branch for any kind of work. In fact, banks now push to transact online, and they also offer some rewards or cash back options upon transactions.
Savings account is also used as a documentation for a proof of residence and a proof of existence. This would help you to get a loan or anything else that would need such a documentation. You can also maintain your bank account well by paying all your bills on time to get a good credit history for future transactions if any. Savings account has many benefits and offers for the customers and you should know almost everything about it so that you can enjoy its benefits to the core.