Question

Opening saveing bankprocedure

Answer 1

Meaning

‘Let your first spending be a saving’ has always been the mantra of modern living. What can be a better saving tool than a Savings Account. Savings account, a type of bank account enables the customers to save their money and it also gives the freedom of withdrawals as this account has more liquidity.

 

Features


Account Opening

In nationalized banks, the minimum amount for account opening is Rs.100/- and for many of the private banks is Rs.500/-.


Number of Applicants

The account can be either opened individually or jointly with another individual. The cheques can be signed by any of the joint holders for withdrawal of funds, however, the account closure form has to be signed jointly by all the account holders.

 

Rate of Interest

Initially banks used to pay interest on the lowest balances in the savings account between the 11th and last day of the month. From April 2010, the interest is calculated on a daily basis on the balances in the account and the bank interest paid,varies from 3.5% to 6%. The RBI monitors interest rate only upto Rs.2lacs. Over Rs.2 lacs, the bank can decide the rate of interest to be paid to the account holder.

 

Transaction Limitations

The transaction refers to the withdrawals or the deposits made in the account. There are usually no limitations on transactions in savings account but few banks do assign limitations.

 

Minimum Amount in Account

All banks specify a minimum average balance to be maintained in the account. However, some banks immediately penalize the holders for withdrawals below the minimum required balances.

 

ATM/Debit Card facility

On opening of the account, the ATM/debit card is provided to each of the account holders. This card can be used withdrawing money from the bank at any time 24x7 and also enables purchases from stores.

 

Online Services

With all banks having online services now, it is easier to access account balances or carry out transactions online.

 

Account opening procedure

Fill the account opening form. The vital points are name, address, occupation and the amount to be deposited.Provide declaration of accepting the rules and regulations of bank.An existing customer of the bank should introduce you to the bank or from a respectable citizen known to the bank.The following are the documents to be submitted for accounting opening procedure:Photocopy of Voter ID or PassportAddress ProofPassport size photographs – 2

After submission, the bank takes a couple of weeks to complete the paper work and process your account opening form. On its completion the bank will send cheque book and debit card via post.