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What Are The Documents Required To Open A Savings Account?

A savings account is the most common account everyone knows about. It is the first banking interaction anyone has with a bank. Banks allow individuals to open savings accounts online and give them access to the best-in-class account options. Let us know the importance of a savings account and how to open and maintain it.

What is the Importance of a Bank Savings Account?

The following are the reasons why you should open a savings account –

    • Safest Option

A savings account allows you to safeguard your deposited money. The Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance to your funds, so you can park them safely and earn interest simultaneously. Each savings account is insured for up to Rs. 5 Lakh for both principal and interest in your account.

    • High Liquidity

You can access the amount deposited in a savings account whenever you need. Banks allow you to withdraw your money via various modes. You can visit the bank branch, or go to an ATM (Automated Teller Machine) to withdraw funds up to a  specific limit at any point in time in a month. You can also make payment via a cheque leaf, and the money will be debited from your account.

    • Anytime Banking Services

Banking services are convenient with technology. A New savings account allows you to enter the financial world and use digital services conveniently. Modern-day financial needs make a savings bank account mandatory. You can make small or big purchases or receive payments online using digital services accessible through a savings account. Banks offer virtual debit cards and a 24×7 facility for online fund transfers. You can open an instant savings account within 5 minutes and can avail the benefit of anytime banking services.

    • Easy Access to Various Credit Lines

Banks can provide various credit facilities when a savings account holder maintains a good amount of money in their account. It can be a credit card with a high limit or a pre-approved loan offer.  

How to Open A Savings Account?

You can open an online bank account by meeting the bank’s requirements.

Eligibility

• If you are an individual aged 18+ years, you can open a bank account in your name. Individuals can open a bank account on behalf of their kids also. • You should be an Indian citizen.

Documentation 

• Identity Proof: You can submit any of these valid documents containing your full name – your Aadhaar Card, PAN Card. • Address Proof: You can submit any of these documents for residence proof – Aadhaar Card. You can initiate the process of opening a bank account with your valid PAN (Permanent Account N​umber) card and Aadhaar card online at the official website of the bank.  

Different types of savings accounts

Banks in India offer different types of accounts to meet the diverse needs of customers. Banks offer specifically-designed savings accounts for women, minors, and senior citizens with additional advantages such as higher interest rates, discounted service charges, more free ATM transactions and other benefits. • Basic Savings Account • Prime Savings Account • Prime Edge Savings Account • Woman’s First Savings Account • Seniors First Savings Account • Salary Account And others, depending on the bank you select  

Can I Open Multiple Savings Accounts?

The Reserve Bank of India (RBI) does not put any restrictions on opening more than one savings account. You can open multiple savings accounts with the same bank or different banks. If you want to save money for different goals, like funding a trip, a vehicle loan down payment, or emergency funds, you can open multiple online bank accounts. It helps to manage your finances effectively. You can put your savings in different bank accounts.  

The Closing 

When opening a new bank account, it is vital first to understand your needs to select the right type of account. Enjoy easy access to 24×7 banking services by opening the Best digital savings account. You can earn at a competitive interest rate with renowned banks, as high as 6.50%. Apart from the interest rate, ensure that you look at other benefits offered by the bank to make an informed choice.

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