When an individual approaches a bank with some money and requires the bank to provide a secure place to store that money, the bank will offer the individual its most basic product – a savings bank account.
Why Open a Savings Account?
These are some characteristics of savings bank accounts that differentiate them from other types of bank accounts:
- Most savings bank accounts in India require the account holder to maintain a minimum account balance of a certain amount, failing which, the bank reserves the right to charge maintenance fees.
- Savings bank accounts generally offer an interest rate slightly higher than the rate of inflation, in order to keep the real value of money stable throughout the years.
- Modern savings accounts are feature packed and offer quick links to pay bills, make quick transactions, etc. to the account holder as soon as he/she logs in to the account.
- Savings accounts have daily withdrawal limits so that they aren’t used as current accounts.
- Savings accounts are generally not zero-balance accounts.
- Savings accounts offer an excellent amount (if not as much as current accounts) of liquidity of funds.
- Savings accounts are usually opened by salaried individuals, as business people usually prefer to maintain current accounts that offer less interest but more liquidity and generally have no minimum balance requirements.
- Banks customize savings accounts depending on the general type of usage the account witnesses in its lifetime.
Eligibility Criteria to Open a Savings Bank Account
In order to set up and operate a savings bank account from any of the major banks in India, applicants must meet the following eligibility criteria. Please note that this is a list of general requirements and criteria followed by most banks, but your specific bank may ask you for a more authentication or have different parameters:
- Savings bank accounts can be opened by resident Indians, non-resident Indians (NRIs), and foreign nationals.
- Age: Generally, banks allow only those who are 18+ to open an account on their own. However, savings accounts can be opened for minors by their parents/guardians.
- Restrictions: Unlike other banking or financial products, there are almost no restrictions on who can open a savings bank account.
Documents Required to Open a Savings Bank Account
Given below is a list of the documents that the customer needs to submit along with his / her application in order to have a savings bank account opened:
- Proof of age and identity: Any authentic, registered, and recognized document issued by a competent authority, that contains the full name and a recent photograph of the applicant can be used. Customers should keep either a PAN Card, Passport, Driving license, Voter’s ID, etc. on hand.
- Photographs: Usually, banks require that you submit at least 2 passport sized photographs along with the application.
- Proof of address: Any authentic, registered, and recognized issued by a competent authority, which contains the address of the applicant can be used. Customers should keep either a Driving license, Voter’s ID, Passport, Utility bill, etc. on hand.
- Senior Citizen Card: Applicants who wish to open a senior citizen’s account are required to submit proof of their age. A senior citizen card works best for this.
- Proof of income: Depending on the type of account the applicant wishes to open, he/she may or may not be asked to submit proof of income and employment.
Depending on the applicant and the type of account being opened, the bank could ask for a few more proofs of identification, age, address, employment, etc. as required.
How to Open a Savings Account Offline?
While most bank related work happens online these days, some trips to the bank are absolutely unavoidable. In case you’re stuck without a portal through which to create a bank account online, you can follow these steps to open a savings bank account offline:
Step 1: Research different banks and their interest rates, find the one that best matches your specific requirements if any, and the type of bank account you wish to open.
Step 2: Take a copy of your identity proof, two photographs, address proof, income/employment proof (if necessary), and age proof and head to the nearest branch of the bank in which you wish to create an account.
Step 3: Once at the bank, tell the clerk you wish to open a savings bank account, and he or she will hand you an account opening form.
Step 4: Fill out the form as required, and submit the same along with the copies of your identity proof, photographs, address proof, income/employment proof (if required), and age proof to the clerk.
Step 5: The clerk will then submit the application for processing and, depending on which bank you’ve chosen, your account will be opened and functional in any time between 1 and 12 working days.
How to Open a Savings Bank Account Online?
The simplest way to conduct banking operations is online, and opening a savings bank account is a very simple procedure:
Step 1: Research different banks and their interest rates, find the one that best matches your specific requirements if any, and the type of bank account you wish to open.
Step 2: Log on to the website of the bank in which you wish to open your account. Note that not all banks have online account creation facilities.
Step 3: Fill out the online application form for the savings account that meets your needs and submit it along with a digital copy of identity proof, photographs, address proof, income/employment proof (if required), and age proof. Some banks may require you to submit physical copies of your documents for which they will send over an executive.
Step 4: Your details will be verified by the bank’s back-end team, and you will be able to start using your account almost instantly.