Savings Bank Account is a type of bank account, where you can keep your money safe, apart from storing the money in your home. It is more like a fixed deposit, where you receive a minimum interest rate. Including this, customers are also given freedom for withdrawing their money required times, unlike fixed deposits. In fixed deposits, once the customers deposit the money, it cannot be retrieved and it will only be accessible after few years. However, with the help of savings account, customers can access their money, whenever required. All the private and nationalised bank offer the facility of savings account.
You can open your savings bank account in any bank you want, the procedure remains the same. Including the banks, savings account can also be opened in any post office or financial institution. In this article, we are going to discuss about the step by step procedure for opening a savings account in a bank.
Step by Step Procedure for Applying a Savings Account:
Step 1: Before opening a bank account, customer has to decide in which bank he or she is willing to open a savings account and which bank is easily accessible for them. Depending on these features, customer has to decide for the bank and its branch.
Step 2: Customer has to decide on which scheme, he is willing to open an account and the best interest he can get and he also has to collect other details like bank opening time, closing time, bank holidays, etc. He also has to check for the list of documents that needs to be provided, when opening a savings account.
Step 3: Another important thing to be noted while opening a savings account is the customer has to be introduced by another account holder of the bank. In order to open a savings account, new customer has also provide details of the existing customer of the bank.
Step 4: The customer has to submit both the Proof of Identity and Proof of address, while opening a savings account. The KYC documents, that needs to be submitted are as follows:
- Driving License
- Voter Identity Card
- PAN card
- Aadhaar Card
- Ration Card
Step 5: Once he has the document ready, he has visit the branch and fill out the form for opening a savings account. After filling the details and providing signature in the required places, he has attach the KYC documents along with the form. Including the documents, you also have to provide a minimum amount of INR 100 or INR 500 for opening a savings account. This amount may vary for different banks.
Step 6: Once the KYC documents has been verified by the bank according to the KYC norms followed, your savings account will be opened. You will have to provide your signature for operating your savings account with cheque. The signature provided by you should be the same in the proofs submitted, account opening form and in cheques.
Step 7: When a customer fills out a form for opening an account, he can also opt for ATM card and net banking facility. The passwords will be provided by the bank through post, to the specified address in the documents submitted.
Step 8: When customer receives the post, he can activate his ATM card and net banking with the provided password.
Including these, the customer also has to maintain a minimum balance amount of INR 5000 in their savings account. He is also eligible for receiving an interest rate, that varies with all the banks and the interest received is taxable.