A saving account is a basic bank account that lets you deposit your money, secure it, and withdraw it when needed. When you open a savings account, you get to leverage interest as well. While the rate of interest is less than the fixed deposit accounts, you get better liquidity. In this article, we are helping you open a savings account.
Choose the Best Savings Account
Not every savings account is equally lucrative. There are some major banks that offer merely 4-4% annual percentage yield (APY). But certain high-yield savings account offer interest rates of around 4% and 6%.
Therefore, shop around and compare the interest rates offered by different banks. While interest rates are important facets, there is more to savings accounts than interest rates. You will acquire more from your deposits if the banks compound the interest on a daily basis than doing the same monthly. Additionally, also check out the monthly fees charged by the banks.
Visit the Bank or its Official Website
You can explore the website of the bank to gather all the details with regard to the saving accounts. Here you will also come across different options banks provide in the same category. You can also visit the bank physically and gather all the information you need to open the savings account.
The Type of Savings Account
Banks offer different types of savings accounts to cater to various financial needs. Following are the types of savings accounts offered by the bank –
- Regular savings accounts
- Women’s savings accounts
- Zero balance savings accounts
- Senior citizen’s savings accounts
- Kids savings accounts
- Family savings account
- Salary account
Each of these accounts come with a different set of objectives and requirements. Make sure that you understand what is offered in them before making the decision.
Submitting the Documents
In order to open a savings account, you have to provide identity and address proof along with two passport size pictures. According to the rules laid out by RBI, there are six different identified as “Officially Valid Documents” for “Proof of Identity.” These documents include –
- Voter’s Identity Card
- Passport
- Driving License
- PAN Card
- NREGA Card
- Aadhaar Card
You have to submit any of these documents to verify your identity. Some of these documents contain the address as well, so you present them; it can be considered as your address proof.
Fill the Form and Make an Initial Deposit
When your documents are verified, you have to fill an application and due diligence form. Once filled, add your signatures and photocopy of your KYC form. After you have submitted everything, deposit money into your account to get it started.
With the right and well-informed approach, you can open your savings account without any hassle.