what is the procedure of opening a saving bank account ???
Answers
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 up to 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 the savings account but few banks do assign limitations. Minimum Amount of 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 the 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. Only,ne 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 the nd regulations of the bank. An extra 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 Passport Address Proof Passport 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. Note: Savings account can be opened and operated by minor too who has completed the age of 10 years. Benefits Safety is the foremost advantage, as large amount of money can be secured in the bank instead of storing money at home. The money saved in a savings account is insured by the government so even if the bank is under crisis, the money deposited is safe. The bank pays interest to its savings account holder depending on the balances held in the account. As the liquidity is high for this account, withdrawing amount on emergency expenses is easier. Tax on interest The interest amount earned by the savings account holder is taxable. However, the interest is credited into the account without deducting interest by the bank.
In case you do not have access to internet or the official website of the bank in which you wish to open the account is not working, you can follow the below mentioned steps and open a savings account offline:
Step 1: Check different banks and their interest rates, and select one that meets your requirements and you wish to open a savings account. Choose the type of savings account you would like to open.
Step 2: Visit the nearest bank branch of your choice and take along a copy of your identity proof, age proof, address proof, income/employment proof (if necessary), and photographs.
Step 3: Once you reach the bank, ask the bank official for an application form of the savings account that you wish to open.
Step 4: Fill the form and submit it along with the copies of supporting documents that include your identity proof, age proof, address proof, income/employment proof (if required), and photographs.
Step 5: Further, the bank official will submit the application form for processing. Once your submitted details are verified, your account will be opened and functional at any time between 1 and 12 working days.