Things to be aware of before opening an online Savings Account

 Many start their banking journey with a Bank Account. Here, you can stash the cash and manage your funds effectively. However, this aspect does not get much attention as much as other investment decisions. Although such accounts are meant to store money and earn liquidity, it affects your finances. Hence, ensure to compare options before opting for one.

This allows you to customise the services of your Savings Account. Most banks have specific categories for specific needs. For instance, women, kids, senior citizens, and earning individuals have accounts for themselves. Also, different banks provide varied services and interest rates. When you research them, you can handle the finances better. But you need to consider some aspects before opening the account:

Minimum balance

This is the initial deposit you make to open Bank Account. While most banks do not insist on balance maintenance, some ask you to maintain a specific limit. This generally ranges between Rs. 500 to Rs. 1,000. However, some private players require a higher balance of Rs. 10,000. So, check your banking needs and spending patterns before deciding the same. This is because overdrawing below the said limit results in a penalty.  

Charges

Banks provide a host of facilities to manage your funds and provide access to them. They charge a maintenance fee for this purpose. The physical branches may charge higher than the online banks owing to overhead costs. These costs include SMS alerts, chequebook, deposit costs, Debit Card withdrawal charges, etc. The treatment of such expenses varies. Hence, check them before you open the account.  

Facilities

Almost all Bank Accounts function similarly, but they are not created equally. They have different user facilities based on their policies and customer satisfaction efforts. Some banks let you deposit cheques by clicking photos, while others need physical deposits. The better the facilities, the higher the minimum deposit requirement. Hence, analyse such facilities depending on your needs to make an informed decision.

Customer services

When you opt for an online Saving Account opening, you build a long-term relationship with the bank. You move the fund management responsibility to the bank. Hence, make sure you get the best assistance when you need it. Customer services are crucial during emergencies. So, checking the grievance and complaint support is an excellent idea before choosing a bank.

ATM availability

While doing Online Banking is one way to handle the account, some things require a solid physical presence. This involves ATMs. If you like to store cash, you should be able to withdraw whenever needed. So, check their network. Thanks to mediums like a Banking app, you can check the nearby bank branches or ATMs. This helps during emergencies.

Opening an online Savings Account? Learn about its eligibility criteria and documentation process

 Bank Accounts are considered the best place to park your hard-earned money. You can withdraw and deposit the money conveniently from it. Of them, Savings Accounts are the most popular products offered by banks. They have many features and benefits, including interest rates on the sums parked, daily withdrawal limits, ATM or Debit Cards, etc. You can also sign up for Online Banking and do transactions from anywhere.

Most banks today allow online Saving Account opening. Here are the eligibility criteria and documentation processes explained.  

Eligibility criteria

Every bank needs you to fulfil the following basic eligibility criteria before opening the account online:

• You can be a resident Indian Individual
• You can be a foreign national currently residing in India
• You can be a non-resident Indian (with ties in India)
• You need to be 18 years old to qualify for the Savings Account

You can also open accounts for minor, but they should be operated jointly, i.e., a parent or guardian of the minor should serve as the second account holder.

Documents required

When you open a Bank Account, you should ensure you upload the following documents:

Account opening form: Download the form from the Savings Account tab on the bank website. Download the form and duly fill it up. Ensure not to leave any tab empty.

Recent passport-size photographs: You also need to provide scanned copies of your recent passport-size photos.

Identity and age proofs: Submit a scanned copy of any government-approved ID and age proofs featuring your photograph and date of birth. Acceptable documents are PAN Card, Aadhaar, Passport, driving license, and Voter ID card. Ensure to scan the original document.

Address proofs: You should also hold the original scanned copy of any government-approved document featuring your address. Acceptable documents are Aadhaar, Passport, driving license, ration card, and utility bills.

If you are a senior citizen who wants to open Bank Account online, you need to provide a senior citizen card as age proof. Apply for the same from the Social Welfare Department.

Steps to open account online

1. Research the different banks concerning interest rates and the banking services offered. Accordingly, select the one that suits your requirements.
2. Visit your chosen bank’s website and click on the Savings Account section. Choose the account you wish to open, like regular, women, joint, minor, etc.
3. Download and complete the online account opening form and submit scanned copies of the documents. If your bank requires document hard copies, they send a representative to your home to collect them.
4. The bank verifies your documents, post which the account number gets allotted, and you can use the account.

Online Account opening has made life simpler for several people. Indian banks and their customers can open an account over the Banking app or Internet Banking, making the entire banking process very convenient.

Everything about Savings Accounts explained!

 What do you generally do with all the money left after paying the monthly dues? Do you consider investment options like Mutual Funds, stock market, Retirement Funds, Fixed Deposits, etc.? Do you have any liquid cash left? Withdrawing funds from investments is not easy. There are some deductions and penalties involved. You can borrow funds through Credit Cards, but those come with interest rates.

So, how to arrange money during emergencies? Savings Account helps here. These accounts are basic and readily provide cash. Although the interest rates might be exciting on balance maintained, you always need a Savings Account. Let us better understand this attractive financial product.  

About Savings Accounts

It is a deposit that you hold with the bank that offers principal security for a reasonable interest rate and immense liquidity. They are best for holding emergency funds, which you might need to fulfil short-term goals.

Availability of Savings Accounts

Almost all banks in India offer a Bank Account. You can now open them either online or offline. The online medium lets you compare interest rates, check the minimum balance requirement and other offers. Once you make the right choice, fill out the online form, and submit the relevant ID proofs and other documents.

Different types of Savings Accounts

Besides the regular account, banks in India offer other accounts too:

• Joint Account
• Women Account
• Senior Citizen Account
• Minor Account
• Pradhan Mantri Dhan Jan Yojana

Are there limitations on the age and income for opening Savings Accounts?

Banks do not impose any such restriction while opening the account. However, there might be different minimum balance requirements, and minors require a parent or guardian to open such accounts.

Penalties upon no minimum balance maintenance

According to RBI guidelines, banks cannot penalise you for maintaining a minimum balance in Dormant Accounts. Only those with active accounts and who do not meet the desired limit are liable for non-maintenance fees besides the Service Tax and Education Cess at applicable rates.

Difference between private and public Savings Accounts

Regarding operational wise, private and public online Bank Accounts offer the same services. However, they differ in minimum balance requirement, usually higher under private banks than public ones. Meanwhile, the free-charge benefit public banks offers is better than private banks.

Savings Account interest rates

The Savings Account interest rates range between 4% to 7%. They either get deposited or credited half-yearly. The interests, however, get calculated either monthly or daily.

You can access Savings Account and its related services through the Banking app or Internet Banking. This does away with visiting bank branches often.