Amit used to live and work outside India, and his parents stayed in India without him. Amit used to transfer the money to their account, but sometimes it takes a long time to reflect in the statement. He could not help his parents whenever there was a problem with the transactions or banking. One day he thought of opening a joint account with his parents so that there is no burden on his parents whenever it comes to banking. Now Amit has given one card to his parents, and whenever they need money, they can withdraw it, and even while staying far away, Amit can look at the problems quickly.
What is a Saving Account?
A saving account is a deposit account that pays interest and is held with a bank or other financial organization. This is the most straightforward basic account that may be opened at any bank. Anyone can open a Savings Account.
Benefits of a Savings Account
There are plenty of benefits of having a saving account; some of the following benefits of a saving account are discussed below:
- Having a savings account at the same bank as your primary checking account can provide various advantages in terms of convenience and efficiency.
- Deposits or withdrawals to your savings account from your checking account will take effect immediately because transfers between accounts at the same institution are frequently instantaneous. This makes it simple to transfer money from your checking account to your savings account and collect interest right away or transfer money the opposite way to cover a significant checking transaction.
- It helps while filing Income Tax returns. It will be simple to determine your gross annual income because all of your earnings will be credited to your Savings Account. You don’t have to spend hours ripping out your hair trying to figure out how much money you’ve made. Additionally, while filing your income tax returns, you can download your bank account statements as proof of income.
- A savings account yields income in addition to keeping your assets safe, so it’s better to put any unused dollars in a savings account rather than accumulating cash in your checking account, where it’ll likely earn little or nothing.
Saving Account from Popular Indian Banks
HDFC Bank Savings Account | State Bank of India Savings Account | ICICI Bank Savings Account | Axis Bank Savings Account | Kotak Mahindra Bank Savings Account | IndusInd Bank Savings Account | Yes Bank Savings Account | Punjab National Bank Savings Account | Bank Of Baroda Savings Account | Bank Of India Savings Account
Types of Saving Account
The different types of saving account are discussed below:
Regular Saving Account
A Regular Savings Account is held by almost everyone who has any bank account. It is the most fundamental account that you may create. If you opt to open such an account, you will generally maintain a minimum monthly balance of INR 500.
Savings Accounts with No Balance or Zero Balance Account
A Zero Balance Savings Account is a prevalent Savings Account within employed people. It’s also referred to as a type of Salary Account. An employer creates this account to deposit their monthly income, incentives, bonuses, and other financial benefits associated with their job. You aren’t required to maintain a minimum balance in the account, as the phrase ‘zero balance’ implies.
Savings Accounts for Seniors
Senior Citizens are typically retired people in their 60s and 70s who have minimal financial resources. On the other hand, their expenses are typically higher, and they prefer safer investing options. Banks provide Senior Citizen Savings Accounts, a specific savings account that allows seniors to do more than park their money.
Digital Savings Accounts
Because we live in a digital world, having a Digital savings account is only natural. This account functions similarly to a regular savings account, except it does not include any physical documentation, including bank account information. You’ll receive a digital debit card that you may use for any transaction or purchase.
Accounts held jointly
Many families want to consolidate their funds into a single account. People in this situation can open a Joint Account, a sort of Savings Account. This means that one or all joint account holders can be signatories. Most Indian banks enable up to four people to be titled Joint Account Holders on a single account.
How to Open a Saving Account
You’ll need documents like your ID proof, address proof, PAN card, Aadhaar card, three-month bank account statement, and a check for the amount you’d like to deposit in your new account to start an online saving account opening.