A savings account is one of the most fundamental forms of a bank account, allowing customers to save money and earn interest on deposits while still having the ability to withdraw it at any time. Aside from that, a savings account offers a number of advantages and features, making it one of the greatest investing possibilities.
Features of savings accounts
Interest Rates
Banks provide depositors interest in exchange for keeping their funds on deposit with them. The interest rate is the amount of money paid by the bank on the amount of money that the user has deposited. The amount placed in his/her account determines the savings account interest rate offered by banks. Furthermore, the RBI’s ongoing banking policies influence the interest rates that banks offer. It’s also worth noting that interest rates vary from bank to bank.
Minimum balance requirement
Banks create a minimum balance requirement, which savings account customers must manage and maintain. Some types of savings accounts, such as salary savings accounts or zero saving accounts, do not require a minimum amount to be maintained, while others do. If an account holder fails to do so, he or she will be penalized.
ATM Facility
Using an ATM card or a debit card, you can simply withdraw dollars from any ATM. It is crucial to know, however, that if you use another bank’s ATM to withdraw money after a specific number of transactions, a modest fee is deducted.
Debit Card
If you have a savings account, you will almost certainly receive a debit card as part of your welcome package. You may simply withdraw money from an ATM and/or make payments on both online and offline platforms with a debit card. All you have to do to authenticate the transaction is input your credentials. You will be given a digital debit card with the option of obtaining a physical debit card.
Passbook and cheque book facility
Mostly all banks include a passbook and a cheque book as part of the welcome kit when you create a savings account. A passbook is used to maintain track of all your financial transactions and activities, whilst a cheque book is used to make quick withdrawals or submissions of money.
Interest Rate
Users of savings accounts can execute transactions online. One can utilize a bank’s mobile banking application or online banking to execute different financial operations such as transferring money, receiving money, paying bills, investing in stock markets, selecting insurance or other investment alternatives, ordering a cheque book, and so on. All services are provided online rather than in person at the bank’s location.
No age limit
The age of the account holder is not restricted to a savings account. Each account type has its unique set of eligibility restrictions and benefits, making it appropriate for persons of all ages. Anyone of any age can open a savings account if they match the qualifying requirements. Whether it’s a kid savings account, a senior citizen savings account, or a salary savings account.
Account Tenure
Savings accounts are continuous in nature, which means the account can be managed and maintained for as long as the account holder desires. A savings account has no time limit on how long money can be held in it. Keep in mind, however, that if your account is idle for two years or more. It will be categorized as inactive by the banks. In this situation, you must contact your bank once more to activate the account.
Easy exit
You are free to close your savings account at any moment. You only need to connect to your bank. Keep in mind that you cannot close your account online; you must go to your bank’s location to do so. Furthermore, if your account has been inactive for a while, you must first activate it before canceling it.
