Bank Of India Savings Account
Bank of India, abbreviated as BOI is a nationalized bank that is owned by the government, namely by the Ministry of Finance. The bank was launched in 1906 and came under government ownership when it was nationalized in 1969.
If you intend to open a Bank of India savings account, you should ideally gather information on key factors such as
- Bank of India interest rates on savings account
- Bank of India eligibility of savings accounts
- Bank of India savings accounts types
- Bank of India minimum balance for savings accounts
Benefits of A Savings Account
But before we get into any of that, let us look at why you need a savings account and some of the basic and important features that you need to ensure you get out of your savings account.
You need a savings bank account to receive and make payments legally and to do online shopping. If you have more than 1 lakh that you want to invest, it might make sense to invest in different banks and for this purpose you might want to open a handful of savings accounts – provided you will be able to keep a track of it. A useful savings account should offer:
1. Good access
The bank you choose to open a savings account with should have a good number of branches and ATMs in your city of residence and also in your neighborhood. If you have to travel to the next postcode or the next suburb to get to a branch or to an ATM, then the bank is not exactly convenient for you. Of course, most transactions today are carried out online, but do consider this point.
Additionally, you should get a cheque book of 25 to 50 leaves and a free ATM and debit card with your bank account. Online banking and telebanking facilities should be available to you, if you want to use it.
2. Competitive charges
Consider the fees and charges being levied by the bank for your savings account and deduct these from the interest you are likely to earn. Repeat this quick calculation for the banks in your area and choose the one that is likely to cost you the least/ allow you to earn the most on interest (minus fees). Also consider the rates for RTGS and credit cards or any additional facilities that you are likely to use like credit, RTGS, NEFT, printed bank statements and so on.
3. Offers, discounts and benefits
Some banks offer you discounts with their debit and credit cards, or other benefits and offers, some specific to certain account types. Take all this into consideration.
Bank of India savings account interest rates
According to the Bank of India website, “Interest is calculated on daily products” and will be credited to savings bank accounts “on quarterly basis in the months of May, August, November and February, respectively every year or at the time of closing of the SB A/c subject to minimum Rs. 1”. Bank of India pays an interest rate of 2.90%.
Bank of India eligibility of savings accounts
You are entitled to apply for a savings bank account by law, once you have attained 18 years of age. Minors can also apply with the help of a legal guardian or with help from their parents. Bank of India also encourages illiterate citizens to open savings bank accounts. You can help illiterate citizens – including gardeners, handymen and domestic help – by explaining how savings bank accounts work and by urging them to visit their nearest branch to make a bank account by affixing their thumb impression.
Bank of India savings accounts types
There are a total of 9 savings accounts types, some of which come with specific benefits, that you can avail of depending on your requirements, income status, occupation and occupation status, such as:
- Star Suraksha SB Plus Account
- Savings Bank Ordinary Account
- BOI Savings Plus Scheme
- BOI Super Saving Plus
- Diamond Saving Bank Account
- BOI Star Yuva Account
- BOI Star Mahila SB Account
- BOI Star Senior Citizen SB Account
- SB Account for Pensioners
Bank of India minimum balance for savings accounts
This amount differs for different types of accounts. It can be as low as Rs 500 or even zero balance, or as high as Rs 5000.
- Star Suraksha and Savings Bank Ordinary Accounts call for Rs 500 QAB
- SB Account for pensioners comes with a zero balance facility, but BOI Star Senior Citizen SB Account comes with a Rs 10,000 QAB
- BOI Star Mahila SB Account needs a Rs 5000 minimum QAB
- BOI Savings Plus Scheme needs a QAB of Rs 25000 (Savings Account) plus Rs 5000 (Term Deposit)
If you fail to maintain your minimum balance, you might be liable to pay penalties. In the case of zero balance accounts, you can avail of a zero balance facility.
Conclusion: Today all banks, including Bank of India offer you more than one savings account type. You can therefore choose a savings account that perfectly suits your requirements.