Even though there are a lot of different banks that might have a savings account facility, almost all of them are the same. Saving is a crucial part of life and so we must make a very clear understanding of what are the things one should know before one can open a savings account. In the initial stage, opening a zero balance savings account will be a good step.
Things to be kept in mind
Here are some of the things which we should consider before opening a savings bank account
Purpose
There are a variety of purpose which a savings account might serve some of them being;
- Saving Money: The money put inside the account is allocated by the household for this specific purpose. We can also earn interest through the accumulation of savings.
- Transfer and Payment Facility: A saving bank facility offers a way to make payments on a daily basis.
- Monitor your Transactions: All the transactions are transparent and can be checked at any point in time whenever needed.
- Online Banking Facility: In this time where technology is advancing so rapidly we need online banking as a necessity.
- Earn Interest: There are different rates of interest rates that a bank can offer depending upon the amount of deposit and the frequency of deposit. Further interest rates can also defer from one bank to another.
Minimum Opening Balance and Monthly Deposits:
A minimum amount is required to open and activate a savings bank account for some banks. This is to cover any costs which the bank may incur, but this might also deter some people from opening accounts. A minimum deposit might not be needed if you are opening a zero balance saving account. Further, many banks also require regular deposits of fixed amounts every month to provide the decided interest rate.
Fees Structure
There are fees levied on certain facilities which are provided by banks for example ATM fees, home deposit fees, over the counter deposit fees etc. These would vary depending upon the bank and the service availed. Fees asked by banks can also vary as per your term with the bank and the services you wish to avail.
Facilities offered
These days banks have started offering a variety of facilities, both online and offline to ease out the whole process for their customer. Further, there would be some extra costs that might be incurred in case of the availability of the e-banking services. For Example, some banks offer some special facilities for senior citizens.
Types of Savings Account
These are the general types of savings account;
- Deposit Account: This is the traditional account where one can do any regular transactions.
- Salary Account: This is for the regular salary class people who have constant monthly deposits of their salaries.
- Family Account: This is an account made for the whole family and joint savings.
- There are also different accounts for women, kids and senior citizens depending on your category.
There are different types of Steps involved while opening a savings bank account
After the above-listed items are considered and one chooses a bank account here are the steps to be followed to open a savings account.
- Step 1: Fill out an account opening form, remember to carry a passport or any other form of identity proof.
- Step 2: Give a thumbprint for identification and to avoid any illegal activities.
- Step 3: Some other documents might also be asked by the bank depending upon the situation.
- Step 4: Make your minimum deposit or not if it is a zero balance savings account.
- Step 5: Receive your ATM card and the PIN generated
Now, the account is ready to use.
The ATM and the PIN given by the bank are to be kept safely and securely and never to be shared with anyone. The Savings bank account is just a start to your journey into saving, investing and growing. Remember to take full advantage of the bank and then develop a positive relationship with the bank to serve you in times of need.