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.
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