Savings Account is the oldest and most common form of savings. The reason behind people preferring a savings account over any other form of savings is that here the principal amount is always safe no matter how much interest is earned. It can thus be said that the convenience of keeping the money in a savings bank account and earning interest is also the simplest form of investment.
Even though there are so many options to save money, the charm of Savings Account is still noticeable. Zero balance savings account has also got so much attention for its advantage of having the privileges of a savings account without maintaining any minimum balance in it. The features and benefits of Savings Account are as follows
The minimum balance required to maintain a savings bank account is subject to change from one bank to another just like the rate of interest. There are mainly two types of savings account - regular savings account and zero balance savings account. Banks have a certain minimum balance limit which an account holder has to maintain else he/she has to pay the penalty.
However, with the changes in other banking products, a savings account has also seen a major shift from being minimum balance account to zero balance savings account. Many banks now offer zero balance savings account due to increased demand as compared to the age-old pattern of keeping thousands in the bank account to avoid penalties. The savings account interest rate on these accounts are also high which makes it even more appealing.
|S.No.||Banks||Minimum Balance Required(₹)||Rate of Interest (p.a.)||Features|
|4.||Bank of Baroda||0/5/1000||3.50%-4%|
|5.||Bank of India||500/5000/10000/20000/100000||3.50%-4%|
|7.||Bank of Maharashtra||1000||4%|
|9.||Central Bank of India||50||3.50%-4%|
|21.||Indian Overseas Bank||500-1000||4%|
|23.||Jammu & Kashmir Bank||0/500/1000||3.50%|
|25.||Kotak Mahindra Bank||0/2000/3000/5000/10000/20000||5-6%|
|26.||Lakshmi Vilas Bank||1000/3000/5000||4%-6.50%|
|27.||Oriental Bank of Commerce||0/500/1000||3.50%-4%|
|28.||Punjab National Bank||500/1000/2000/50000||3.50%-4%|
|29.||Punjab and Sind Bank||500/1000||3.50%-4%|
|30.||South Indian Bank||0/2500/5000||4%|
|31.||State Bank of India||0/1000/2000/25000||3.50%-4%|
|34.||Union Bank of India||0/20/100/250/500/1000||3.50%-4%|
|35.||United Bank of India||0/50/100/500||3.50%-4%|
The procedure for online savings account opening with zero balance is very simple through Wishfin. The portal allows paperless process with no upfront verification. There is instant approval facility available which makes account opening process the easiest thing ever. The details required to apply for online savings account are as follows:
Once the above details are provided, the applicants can compare different banks offering a savings account with zero balance and then apply for the bank as per the choice. The complete process just takes a few minutes.
Savings Account interest calculator can be used to calculate the estimated investment growth over time. It helps you set a goal and then save money accordingly. The calculation can be done by mentioning the annual interest, invested amount and time period. For a shorter time period, you need to invest more money and vice versa.
Savings account and current account have some similarities as well as some differences. A current account, on one hand, is one of the important things to have for businessmen as it allows a higher number of transactions on a regular basis as compared to the savings account. There is no interest provided by a current account by most of the banks but the overdraft facility can be availed easily. The minimum account balance (MAB) required on a current account is also very high as compared to the savings account. For better understanding, have a look at some of the basic difference between savings and current account.
|Features||Savings Account||Current Account|
|Type of Account||Deposit Account||Daily Transactions|
|Minimum Account Balance (MAB)||0||Minimum ₹10,000|
|Interest Rate||Up to 7%||NIL|
|Free Transactions Allowed||Limited||Unlimited|
Thus, savings account, especially online savings account, is suitable for anyone who wants to earn interest on their deposits. Current account, on the other hand, is preferred by the individuals and firms who require monetary transactions on a day-to-day basis. Also, the highest savings account interest rate can be earned on a zero balance account and not on a regular bank account.
Below are some of the queries frequently asked about a savings account.
You can check your Savings Account balance through ATM, NetBanking, SMS and Passbook.
India Post also facilitates internet banking service through DoP internet banking. You can check your account balance or for any other banking services, you can login through its internet banking portal with the help of a username and password.
Under Income Tax Act 80TTA, interest up to Rs. 10,000 is exempt from tax. For senior citizens, the tax exemption on a savings account interest rate is up to Rs. 50,000 under Income Tax Act 80TTB.