A financial savings account is one of the basic types of bank account, permitting customers to keep cash and earn interest on the fund deposited even as additionally having the choice to withdraw it at any time. Apart from that, a savings account provides customers with quite a few advantages and features, making it one of the best investment options.
Since there’s a vast call for a Savings Account among the public, banks provide specific sorts of Savings Accounts to help their clients with specific needs and requirements. The different types of Savings Accounts include Regular Savings Accounts, Salary Accounts, Kids Accounts, Women’s Accounts, Senior Citizens Accounts, and more.
This article covers every aspect of a savings account. These features may also vary relying on the type of savings account and the financial institution or bank that offers it.
Features of a Savings Account
Banks provide depositors interest rate in exchange for maintaining their fund with them. The interest rate is the amount of money paid by the bank or financial institution on the amount of cash deposited by the user. The interest rate offered by banks is decided with the aid of using the amount deposited in his/her account. Furthermore, the ongoing banking regulations have an effect on the interest rate offered by the banks. It is important to note that the interest rate differ from one financial institution to another. Nowadays, many lending institutions provide savings account interest calculator tool which makes it easier for the customers.
Minimum Balance Requirement
Banks set up a minimum balance requirement, that’s to be managed and maintained by account holders. Despite the truth that a few types of financial savings money account, such as salary account or zero balance account, do no longer require a minimum balance to be maintained, others do. If an account holder fails to do so, he or she will be able to pay a penalty. The minimum balance requirement differs from bank to bank and so does the penalty. However, the requirement is greater for money held in a private financial institution than public one.
A savings account permits a person to withdraw a fixed sum of money at any time and from any location. The financial institution determines the withdrawal amount and the number of times a withdrawal can be made.
You can easily withdraw money from any ATM using an ATM card or a debit card. It is essential to note, however, that a small charge is deducted in case you use any other financial institution’s ATM to withdraw cash after a certain number of transactions.
If you’ve got a savings account, you’ll at most likely be given a debit card. With a debit card, you can easily withdraw cash from an ATM and/or make bill payments on each online and offline platform. To authenticate the transaction, all you want to do is input your credentials.
Passbook and check book facility
When you open a savings account, nearly all banks provide a passbook and a checkbook as a part of the welcome kit. A passbook maintains track of all of your financial transactions and activities, while a checkbook is designed for quick withdrawal or submission of funds.
No age bar
A savings account has no limit on the account holder’s age. Each form of account has its personal set of eligibility necessities and advantages, making it appropriate for people of all ages. Anyone of any age can open a savings account by meeting the desired eligibility standards, whether it is a minor savings account (minors over the age of ten), a senior citizen account, or a salary account.
Savings accounts permit customers to conduct transactions online. To carry out numerous banking transactions including sending cash, receiving cash, paying bills, making an investment in investing markets, choosing insurance or different funding options, ordering a check book, and so on, you may use a financial institution’s mobile banking application or internet banking. Instead of physically traveling to the financial institution’s branch, all services are available online.
Savings accounts are continuous in nature, because of this the account can be controlled and maintained so long as he/she wants.. There isn’t any time restriction on how long cash may be kept in that account. However, keep in mind that in case your account is inactive for 2 years or more, it’ll be categorized as an inactive account via the means of the banks. In this case, you’ll want to contact your financial institution once more to activate the account.
You have the choice of closing your savings account at any time. All you want to do is connect with your financial institution. Remember that most of the banks don’t allow closing your account online; you ought to go to your financial institution’s office to do so. Furthermore, in case your account is dormant, you must first activate it before closing it.
The advantages mentioned above spotlight the importance of getting a savings account. Furthermore, you must strongly not forget those functions before choosing a financial institution with which to open an account. However, the features of various savings accounts can also differ from one financial institution to the next.
Why open a savings account?
While we now recognize what are the features of a Savings Account, le us to try to understand its numerous advantages. From liquidity to the protection of funds, it comes with quite a few advantages –
- Fund transfers are remarkably quick, convenient, and straightforward.
- Accessible for all age groups
- Easy to hold with nominal charges
- Facility to open joint accounts
- Nomination Facility
- You can use a Savings account for auto-debit instructions associated with bill payments or investments.
- Additional advantages like a free Demat Account, free-locker facility, etc., may be offered.
From safekeeping of surplus cash that may be used any time in the future to a base for carrying out all sorts of economic transactions, different clients use Account for numerous reasons. Almost everybody needs a Savings Account at some point in their life. If you no longer own one yet, open a Savings Account and begin saving.