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Savings Bank Account

A Savings Bank account (SB account) is meant to promote the habit of saving among the people. It also facilitates safe keeping of money. In this scheme fund is allowed to be withdrawn whenever required, without any condition. Hence a savings account is a safe, convenient and affordable way to save your money. The bank pays a minimal interest for keeping the money with them in a savings account.

Savings, Saving Bank accountThe minimum amount to open a savings account in India a nationalized bank is Rs 100. The minimum balance one needs to maintain with the bank if cheque books are issued increases to Rs 500 . However in some private or foreign bank the minimum balance is Rs 500 or more and can be up Rs. 10,000. A Savings account can be opened either individually or jointly with another individual. In a joint account only the signature of one account holder is needed to write a cheque. But at the time of closing an account, the signature of both the account holders are needed.

The rate of interest in a savings account is chargeable under the simple interest method and keeps on changing as per the rules and prescriptions of the Reserve Bank of India. Normally it varies between 2.5% and 4%.One can withdraw his/her money by submitting a cheque in the bank and details of the account. All the details of the transactions made with the bank are recorded in the passbook. Apart from offering safety, the savings account offer convenience to its user as Debit cards have become a general feature of every savings bank account. Also many of the banks also give internet banking facility through with one do the transactions like withdrawals, deposits, statement of account etc.

Savings Bank Account can be opened in the name of an individual or in joint names of the depositors by filling up the appropriate forms. A minor who has attained ten years of age can also open and operate the account. At the time of opening a saving bank account in India one must submit the documents like photocopy of passport or Electoral card, Postal identification cards as address proof and two passport size photos. Most banks also require an introduction for opening an SB account. The introduction may be obtained either from an existing account holder or from a respectable citizen, well known to the bank, who should normally call on the bank and sign in the column specially provided for the purpose of introduction in the account opening form.

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