Easy Way To Open A Savings Account In India
When an individual decides to open a savings account, they need to check a few things. Primarily opening a savings account with reputed banks to get the most out of your funds. After that, savings account interest rates.
Opening a savings account is easy, but there are a few things you need to take care of. To understand the online new account opening process it’s crucial to know everything before initiating the process. Let’s learn how to open a new savings account.
Look for the Best Savings Account Facilities
To open the best savings account, you have to look at the following facilities offered by a bank:
- Interest Rates: All banks set interest rates on their savings accounts that usually vary and can go as high as 6.50% per annum. The highest interest rate depends on the account balance. 2. Anytime and Anywhere Banking: Check whether the bank allows you to access your account and make transactions anywhere, anytime, using internet/mobile banking facilities.
- Debit Cards Deals: Generally, the online new account opening is associated with attractive rewards, cashback, and other benefits. There may be a minimum spending limit to receive these benefits. Look for a bank offering a virtual card to new savings account customers.
- No Charges on Non-maintenance of Minimum Balance: Find a bank that does not levy a fee for a non-maintenance of minimum balance to be maintained monthly or quarterly in a savings bank account.
Why is Having a Savings Account Necessary?
A savings account is the most basic account to access numerous banking services. It allows you to deposit your money and hold it safely with the bank. Deposit accounts with a bank are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
A savings account ensures easy access to your funds digitally and in person, with exceptional flexibility. It is also an interest-bearing account. The interest rate varies with different banks based on different criteria, like the customer segments. The bank offers females and Senior citizens better interest rates.
Besides the interest rates, you’ll also enjoy the facility of cheque or online debit/credit card transactions. Using a savings account, you can save money for numerous purposes safely. The RBI (Reserve Bank of India) allows individuals to open multiple savings accounts in India with the same bank or different banks.
Who can Open a Savings Account?
A new account opening is necessary to start your investing journey. You can open a Fixed Deposit account and invest in mutual funds and other financial assets online using your savings account.
You will need a savings account to receive government benefits from different schemes, subsidies, pensions, and more. The Government ensures that the beneficiary receives all the benefits digitally without any involvement of a middleman. Let’s check the eligibility criteria for a savings account.
- An Indian citizen aged 18+ can open a savings account individually.
- A minor of less than 10 years can open joint savings account with their parents or guardians.
- A Hindu Undivided Family (HUF) can also open bank savings account in India.
- Non-residents can also open savings accounts specifically designed for them by banks.
How to Prepare for Easy Documentation?
In India, to apply for a savings account, an individual needs identity, age, and residence proof. Mandatory KYC (Know Your Customer) documents that needs to be submitted are:
- ID Proof: Aadhaar Card, Permanent Account Number (PAN), Passport, Driving Licence, or Voter ID card.
- Address Proof: Aadhaar Card, Voter ID, Utility Bills, Bank Statements, Driving License, or Passport.
How to Open a Savings Account?
Individuals have options to open a savings account online or offline. You can visit the bank branch to open an offline bank account and the bank’s representative there will guide you on the form filling and documentation process.
The online new account opening process starts with your email address and Aadhar Linked Mobile Number. for digital bank account opening in 5-7 minutes go to the bank’s official website with your valid PAN card and Aadhaar Card. You can open a savings account with renowned banks in three steps:
- Provide your Aadhaar number and PAN details.
- Select a savings account variant you need.
- Provide personal details
Thus, you can open a savings account in India with your basic KYC documents. Find a reputable bank offering a savings account bearing a decent interest rate and open your account. Get ready to start saving money in your account and earn interest on it.
