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A savings account is one of the most preferred investment options by risk-conscious middle-class Indians. It is a deposit account in which a certain amount of your income is kept as savings to meet future financial requirements. It is an account held at a bank that earns a certain amount of interest on the balance maintained in it.
Any individual can open a savings account online and avail of a high-interest rate. Furthermore, it offers an online banking facility to deposit checks, review balances, and keep track of all the transfers.
Features of a savings account
- You can store your surplus fund in a savings account without worrying about security.
- Although the interest rate is not as high as other investment options, the balance amount in a savings account can earn interest and increase funds.
- Account-holders have access to debit cards to withdraw funds from ATMs. The withdrawal limit varies from bank to bank. It generally is six times per month.
- Usually, banks offer discounts on rental locker facilities if you maintain the minimum quarterly balance.
- If you choose to open saving account online, banks provide you with insurance covers that include accidents and death.
Steps to open a savings account
Follow the steps to understand how to open saving account online
Look for different banks
First of all, look for different banks and compare interest rates to find an option that best suits your specific requirements. You could then choose the type of savings account you wish to open.
Gather relevant identification documents
There are relevant documents required to open a savings account like an Aadhaar card, PAN card, a utility bill, or passport. Make you gather these documents before opening an account.
Visit the website
For an offline application, you will need to visit the bank physically. However, you have to visit the official website of your preferred bank if you are choosing to apply online.
Fill the application form
Every bank has a mandatory savings account application form that needs to be filled by the applicant. The form requires details such as name, date of birth, addresses, nominees details, etc.
You will have to attach relevant documents like identity proof, address proof, age proof, employment proof, and recent photography. Some banks ask for physical copies of these documents. So, you might have to visit the bank or courier them to submit the documents.
Begin using the account
After filling the application form and submitting the relevant documents required to open a savings account, you will have to wait for the bank to verify your details and documents. After the verification, the bank activates your bank account, and you can using your account as you wish.
Mandatory documents required by the banks
Proof of address: Any one of the below documents would suffice
- Aadhaar Card
- Voter ID card
- Utility bill (electricity, water, gas, telephone)
- Driving license
- Bank account statement
- Ration card
Proof of identity: Any one of the below documents would suffice
- Aadhaar Card
- PAN card
- Voter ID card
- Driving License
- Employee ID
- Central or state government-issued photo ID
- NGREGA job card
Opening a saving account online is easy and can be opened from the comfort of your home. Before initiating the process, ensure that all the relevant documents are ready to finish your application.