What is a Savings Account: its Meaning, Benefits and Opening Process

What is a Savings Account? - Its Meaning & Definition

A Savings Account is a deposit account that you can open at any retail bank. Understanding the savings account meaning is essential for effectively managing your finances. You can deposit your idle funds in this account and use the same as and when required while also earning interest on the balance maintained. Be it managing your everyday expenses or saving for an emergency; a Savings Account is an excellent option. Banks now offer many types of Savings Account with a host of features to meet the savings needs of its customers. There are now accounts for women, kids, senior citizens, and more with benefits such as higher interest rate, discount on locker charges and unlimited withdrawal through ATMs.

How to open a Savings Account?

In the past, the only way to open a new Savings Account was by visiting the bank branch. However, some of the banks now allow you to open a new Savings Account online. For this, you are required to submit an account opening form along with the required documents online. To open a regular Savings Account online, you will need documents such as your ID proof, address proof, PAN card, Aadhaar card, bank account statement of at least three months and a cheque of the amount you'd like to deposit in your new account.

Managing a Savings Account

Once your new Savings Account is opened, you’ll then receive a kit with your account number, cheque book, passbook and ATM card. You can then start using your account for offline transactions and withdrawing money from ATMs. You’ll also be able to register for your bank’s online banking facility with your new Savings Account. For this, you will have to register for online banking from the official website of your bank. Registering for online banking is easy and you only need to fill a form with your account number and personal details. Once registered, the bank will then generate a username and password for your account which you can use for online banking.

Selecting a bank for Savings Account

If you are planning to open a new account, it is essential first to compare Savings Accounts from different banks. You can compare them based on their reputation, customer service, interest rate, minimum balance and types of accounts offered by the bank. You can visit the official website of a bank to know more about their Savings Account. Visit websites of at least a few top banks in India to make the right decision.

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