Whats is Savings Account and Zero Balance, Interest Rate & Benefit

Whats is Savings Account | Saving Account Interest Rate, Zero Balance, Benefits of Saving Account.

What is Saving Account: Savings Accounts are opened for household Persons. KYC (Know Your Customer) required for an open Saving Account. In KYC Pan Card is not mandatory. If you have not PAN Card you have must fill form-60.

Restriction on withdrawal in Savings Accounts limited transactions in a month. Bank provides Interest on your money-saving in your bank account, the Saving Account interest rate varies from bank to bank. It means the Rate of interest decided by the individual banks and Interest is calculated on daily basis and Interest is compound quarterly.

Interest is tax free upto Rs. 10,000 p.a and for senior citizens upto Rs. 50,000 p.a.

You have must maintain MAB-Monthly Average Balance and QAB-Quarterly Average Balance

Read, 16 Type of Bank Account in India

When you have to deposit money, then the only thing you can trust is the bank, so to deposit money in the bank, you have to first open a bank account in any bank.

Most of the common people open savings accounts but what is this savings account? what is the meaning of the Saving Account and how to open a savings account, what documents are required for open Saving account, and what is the rate of interest in saving account?

There are16 types of bank accounts, one of which is a Saving Account.

What is the Meaning of savings account (What is a Saving Account?)

A Savings account is an account in the bank where you can deposit your saved money and also, get interested in it quarterly by the bank, it is considered the safest account to save money.

Savings account where you want to save some money and it can be used in time, it is beneficial to use a savings account in this situation.

Savings account interest rate: How much interest rate is available in a savings account. 

Interest is received on the total deposits in the quarterly, now this rate of interest varies banks to the bank, but in most of the savings account, you will get The interest rate is between 3% to 5% varies according to the bank to bank.

Most of the banks you are given the interest in savings account between 3% to 5% quarterly but some there is also a bank which gives you more interest than this, but they have some limits.

What should be the minimum balance in a savings account

 In a bank like PNB Bank or SBI and another public bank, you must have a minimum of 1000 to 5000 thousand to open saving accounts. 

But in most of the private bank minimum balance is 10000 rupees maintained monthly average for an open savings account.

In every bank, the minimum limit in a savings account is different and it can also change according to time like in some banks this amount is 1000 rupees then in some banks it is between 3000 and 5000 (Monthly Average Maintain) if you keep the balance less than that. Then you have to pay for it which will be deducted from your account.

How long to deposit money in a savings account: What is the Saving Account Limit? 

See there is no limit on the maximum amount to be deposited in any bank account in the savings account. You can deposit the money as you wish, but always be careful if your if you deposit five lakh or more annually in a bank account, then you will have to file an income tax return and inform the ITR ( ITR) department otherwise else you may get a notice from the income tax department.

Read, Write a Latter for Open Bank Account

What've documents needed to open a savings account

Whether you go to any bank, be it  State Bank of India (SBI), or Punjab National Bank in all the banks, you must have certain documents like

Address proof like Voter ID card, Addhar card, Driving License, Passport Card, PAN Card, etc to open a savings account. Latest two color photos

PAN Card: Nowadays you need your PAN card details to open most bank accounts. This is also, an important document that is asked at the time of opening your bank account. 

If you have not PAN card you fill form number 60 and open a savings account. PAN Card is not mandatory for an open saving account, but you want to open the current account PAN card is Mandatory.

Thanks for the Reading article on What is Saving Account, Interest Rate, Zero Balance Saving Account in SBI, How to open Saving account, Document, Minimum balance in a savings account.