Overview

A savings account is a deposit account held at a bank or other financial institution where you can store extra cash, earn interest on it and access it whenever required. It is the most basic type of banking instrument used by an individual and among the safest ways to ensure that you can easily access your hard earned money when you need it. You can deposit funds either by cash or cheques into the savings account or can transfer funds from other savings account using IMPS/NEFT/RTGS/UPI and earn interest on such deposits, which is credited to your account on a quarterly basis.

The applicable interest rate offered on a savings account usually ranges from 3.5% to 7% and varies from bank to bank. You are allowed to make withdrawals either by visiting the bank branch and cashing a cheque/withdrawal slip drawn on the account or at an ATM by using a debit card linked to the account. In most cases, you are required to maintain an average minimum balance for the quarter or the month according to the bank's rules and regulations. However, banks also provide zero balance accounts, which come without any complication of maintaining minimum balance in the savings account.

Types of Savings Account

In recent times, banks have come up with different types of savings accounts to cater to customers from different age groups and work domains. According to your eligibility and requirement you can open any of the bank savings account mentioned below.

Every bank offers different accounts, which differ in its features and benefits, based upon your personal savings account requirements you can choose the befitting option. The common types of savings account available in India include the following:

Zero Balance Savings Account:

Zero Balance Savings Account is a type of savings account, which is offered by banks to individuals to operate freely without the strings of maintaining any minimum balance. Unlike other savings account, account holders are not required to maintain any minimum balance as zero balance savings accounts do not come with the constraint of maintaining a minimum balance. To open such an account, applicant will have to submit the basic KYC documents or can open a zero balance savings account online using Aadhaar based eKYC.

Regular/Basic Savings Account:

A regular savings account features the minimum of facilities and basic rates for services. You have to ensure that you maintain the prescribed minimum balance in your savings account so as not to incur extra charges.

Salary Account:

Also a type of savings account, this can only be opened by a salaried individual and most companies directly deposit the employee's monthly salary into this account. A key feature of the salary account is that it is a zero balance savings account, which implies that you do not need to maintain a minimum balance in the savings account. If the monthly salary is not credited into this account for 2 to 3 months, this type of account is automatically converted to a regular savings account with minimum balance requirements.

Top Banks

Providing savings account to customers is the primary business of banks, therefore all banks, (both private and public sector) with retail services provide savings accounts. Some of the top choices of savings accounts include digibank by DBS, Kotak Mahindra Bank, Axis Bank, Yes Bank, IDFC Bank, IndusInd Bank, Citi Bank, ICICI Bank, Standard Chartered Bank, State Bank of India, as well as others.

Banks offering best savings account choices for Indian Citizens with high interest rates are as follows:

• DBS Bank

  DBS is a leading financial services group in Asia. The bank has tailored its savings accounts range for customers looking for high returns on low balance. It offers interest returns up to 7% per annum.

• IndusInd Bank

  IndusInd is an Indian Bank established in the year 1994 and it is the first among the new-generation private banks in India. The bank offers interest rates of up to 6%.

• Kotak Mahindra Bank

  Kotak Mahindra Bank is an Indian private sector bank headquartered at Mumbai. The bank offers up to 6 % interest p.a. on Savings Account balance.

• IDFC Bank

  IDFC Bank received its universal banking license on 1 Oct 2015 and has been raising the bar for service standards since then. The bank offers savings accounts at 4% interest rate per annum.

• Yes Bank

  YES Bank is a leading private sector bank, which offers interest rate of 6.25%, to be offered for an account balance of over Rs. 1 lakhs.

• Axis Bank

  Axis Bank is a leading private sector bank, which offers interest rate of 3.5% p.a. to be offered for an account balance of less than Rs. 50 lakhs and up to 4% p.a. on savings account balance less than Rs 50 lakhs.

Savings Account in Post Office

You can also open savings account at Indian Post Office by visiting the nearest post office branch.

• The applicant will have to pay Rs.20 as an account opening charge.
• Minimum balance of Rs. 500 has to be maintained in accounts with cheque facility
• For accounts without cheque facility, a minimum balance of Rs.50. is required
• The savings accounts can be transferred between post offices in India
• Savings accounts for minors aged 10 and above can be opened with parent/guardian as co-borrower
• Single and joint accounts can be opened
• Savings account interest rate is 4% p.a.

Advantage

It is very important to make a well-researched choice because with so many options in the market it is hard to make a choice by just looking at the broad lines. Therefore, it advisable to compare the savings account options against diverse parameters in order to maximize your earnings and earn better rewards. Here, we have listed numerous parameters which will help you in making the right choice.

Savings account interest rate

Most banks offer interest rate from 3.5% on savings bank accounts. But, there are many banks that offer a higher interest rate up to 7% provided you maintain a minimum balance in the savings account.

Minimum balance to be maintained

Some banks require you to maintain a minimum balance in your savings account, while others do not. If you fail to maintain the minimum account balance, the bank might charge a penalty. Therefore, it is best to check what suits you the best, a savings account with minimum balance or a zero balance savings account.

Additional facilities

Banks offer a number of facilities with a savings account such as net and mobile banking, doorstep cash deposit/withdrawal, free cheque book, etc. Such facilities help complete bank transactions without visiting the bank and from the comfort of your home or office. Check for the facilities attached to the savings account before making a choice.

Debit card deals

Savings bank accounts currently come with a debit card. Since most banks extend offers and deals on their debit cards to lure new customers, one should check out debit card schemes before choosing a savings account. Consider the bank which offers deals on debit cards that can provide you with the greatest benefit. Nowadays, banks also provide several offers and discounts on Debit cards like BookMyShow, Yatra coupons and discounts.

Some facts

Do I need to be over 18 years of age to open a savings account?

Yes. If you want to open an individual savings account, you need to be over 18 years old. However, a minor can be a joint account holder with an adult family member such as parent/guardian.

Do all banks provide cheque facility?

Yes. All banks provide cheque facility however in case of several public sector banks you do have the option of a basic savings account that does not have cheque facility. In that case, you can only withdraw money by visiting the bank and using a withdrawal slips available at the branch. Additionally, there are mobile only banking accounts such as Digibank by DBS and Kotak 811, which do not feature cheque book facility.

Are there charges for an ATM card linked to a savings account?

Yes. ATM Debit cards carry an annual fee of approximately Rs.150 plus applicable taxes (varies from one bank to another). However, many private sector banks waive the annual fee provided you use your Debit card for shopping transactions of a specified denomination during the year or you maintain the minimum average balance requirement specified by the bank.

How can I check my savings account balance?

You can check your savings account balance online through net banking, or by visiting the bank or any ATM. Nowadays, almost all banking transactions can be done online and you need not visit the bank for the same. You can access your account online through net banking and also through mobile banking.

Is saving account interest taxable?

Interest earnings of up to Rs.10000 accrued on your savings account balance is tax free under Section 80TTA. Higher amounts earned as interest are subject to TDS.

Open an Account by visiting the bank

The online application process is very simple and hassle-free, still if you are not that comfortable applying online, you can always pay a visit to the nearest bank branch for opening a savings bank account. You can follow these steps for opening a savings bank deposit account at a bank branch:

1. The first and foremost step before you head to the bank is research. You need to devote some time to compare savings account of different banks, so that you get the best option as per your specific requirements. You can visit the bank websites or other financial websites to get an idea about the features of different savings accounts.

2. When you have made a choice, you can visit the bank branch with KYC documents. You will need to take originals and copies of your identity proof, address proof, income / employment proof (if required), and age proof and photographs to the nearest branch of the bank.

3. Approach the requisite counter at the bank, which deals with the account opening process and get the account opening form.

4. Go through the account opening form and fill it properly as required. Check whether you have filled in all details correctly and signed at the required places. When done, submit the form along with the copies of your documents, i.e. identity proof, address proof, income / employment proof, age proof and photographs.

5. The clerk at the bank will submit your application for processing. Your account will be functional within the processing time as mentioned by the bank. The processing time varies from one bank to another.

Types of Savings Account

In recent times, banks have come up with different types of savings accounts to cater to customers from different age groups and work domains. According to your eligibility and requirement you can open any of the bank savings account mentioned below.

Every bank offers different accounts, which differ in its features and benefits, based upon your personal savings account requirements you can choose the befitting option. The common types of savings account available in India include the following:

• Zero Balance Savings Account:

  Zero Balance Savings Account is a type of savings account, which is offered by banks to individuals to operate freely without the strings of maintaining any minimum balance. Unlike other savings account, account holders are not required to maintain any minimum balance as zero balance savings accounts do not come with the constraint of maintaining a minimum balance. To open such an account, applicant will have to submit the basic KYC documents or can open a zero balance savings account online using Aadhaar based eKYC.

• Regular/Basic Savings Account:

  A regular savings account features the minimum of facilities and basic rates for services. You have to ensure that you maintain the prescribed minimum balance in your savings account so as not to incur extra charges.

• Salary Account:

  Also a type of savings account, this can only be opened by a salaried individual and most companies directly deposit the employee's monthly salary into this account. A key feature of the salary account is that it is a zero balance savings account, which implies that you do not need to maintain a minimum balance in the savings account. If the monthly salary is not credited into this account for 2 to 3 months, this type of account is automatically converted to a regular savings account with minimum balance requirements.

Benefits

The most important benefit of opening a savings account is that it helps you inculcate a habit to save and you can earn interest on this deposited amount. Features of savings account vary according to the type of account you choose. Here we have listed a few of the common features to help you understand the benefits of opening a savings bank deposit account:

• The savings account interest rates range from 3.5% to 7% p.a.
• Network branches and ATMs of the respective bank are easily accessible
• Transfer funds easily using IMPS/NEFT/RTGS/UPI facilities to any bank account
• Internet Banking and Phone Banking facilities for a quick check of balance and bill payment
• Personalized cheques for enhanced security
• Personalized Account Number
• Several offers and discounts on Debit
• No limits on the amount deposited
• Facility to link loan EMIs or RD deductions through the savings bank account

Eligibility Criteria

Applying for a savings account does not require applicants to satisfy any income or employment criteria. The eligibility criteria for opening a savings account are minimal and might vary from one bank to the other, but here are some common requirements-

• Savings account can be opened by an Indian citizen, Non Resident Indian and also foreign nationals.
• The applicant should be over 18 years of age. However, nowadays savings account can also be opened for minors by their parents/guardians.

Further, if an applicant needs to know whether he/she satisfies the savings account eligibility criteria or not, he/she can use Servzone's Savings Account Eligibility Calculator and check their eligibility online. The applicant just needs to enter a few simple details about himself / herself and the tool assesses their eligibility based on those details.

Required Documents

Nowadays, you can easily open a savings account online without any hassle. To open a savings account online, you just need to submit the details of the following documents online for eKYC:

• Aadhaar Card: Anyone looking to open a savings account online will have to furnish Aadhaar Card number.
• Pan Card: Any applicant will need to provide Pan Card number along with Aadhaar Card to open a savings account online. Government has made Pan Card and Aadhaar Card mandatory to open a savings account through either channel - online or offline.

You can open your saving bank account online from the convenience of your home. Just follow a simple procedure:

• Check and compare different banks and their rate of interest and select the one which matches your requirements.
• You can visit servzone.in to open a savings account online or visit the website of the bank in which you want to open your saving account. Note: All banks tend to have different online account creation procedure.
• Fill out the application form for opening savings account and submit it along with your Aadhaar number and Pan number to complete eKYC successfully. Post this you will be able to start using your savings account instantly. Later, banks send their executive to complete your verification. Note: Procedure for opening a savings account online varies from one bank to other.
• You can also open a savings account in offline mode with minimum documentation. Usually, the bank asks for KYC documents and passport photos along with the account opening form.

The documents to be submitted with a Savings account opening form include:

• Passport size photographs
• Identity and signature proof (Any one) - Passport, Pan card, Driving License, Voter ID card, Aadhaar card, employee identity card in case of government employees. Note: Aadhaar Card and Pan Card are mandatory to open a savings account. Still banks can ask for any other ID proof as well to complete their verification.
• Address Proof (Any one)- Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/ water/ credit card bill or Property tax.

Rate of Interest

The rate of interest for savings account, in case of most banks, ranges between 3.5 to 7%. For example, Kotak Mahindra Bank offers an interest rate of 6% on salary accounts, whereas, DBS bank offers an interest rate as high as 7% on its savings account. Some government banks also offer an interest rate as low as 3.5% on its savings account. These rates are liable to change based on RBI directive and banks offering higher interest rates often have a higher minimum balance requirement. But, nowadays banks like Kotak Mahindra Bank, DBS and IndusInd Bank provide high interest rates with no minimum balance requirement.

Servzone Procedure

servzone.in provides its customers with an impartial comparison of banking products for better financial planning. By logging onto Servzone's website, applicants can at first check their savings account eligibility. Based upon the requirement, the eligibility tool displays savings account offers that are most suitable. Following this, the prospect can compare the savings bank accounts against an exhaustive list of parameters which helps to understand key features and choose the best saving bank account for himself / herself. Once the choice is made, the prospect can open for the savings account online and the executives of the concerned bank would get in touch with the applicant directly.

With servzone.in, applicants have the following added advantages:

• Our user-friendly online platform helps check eligibility for the savings account
• Find the best savings account options based upon the inputs provided
• Guide customers with every detail of the product so that they can make an informed decision while selecting a financial plan
• Finally, applicants can apply online for savings account on servzone.in

Servzone Process

Just log on to servzone.in and apply for a savings account in no time! Enter a few details related to you and get the best offers with just a click.

All you have to do is to follow a line of steps to apply for a savings account online with Servzone.in:

1. The application process for a savings account starts with the eligibility tool. You need to enter a few details into the tool, such as:
1.1 Place of residence
1.2. Annual Income Range
1.3 And your personal details
 

Once the eligibility form is filled out, click the submit button. Subsequently the form is submitted and the applicant is redirected to a page displaying personalized Savings Account options to choose from.

2. On this page the applicant can compare different Savings Account options against diverse parameters such as, interest rate, minimum account balance and a host of other benefits and features.

3. After comparing the different savings accounts, you can decide on the option which meets your requirements in the best manner. Click on apply tab and depending on the bank either you will be redirected to the bank's website or you will get a reference number and the bank will contact you 48 hours to take the application forward.