Savings Bank Accounts are the simplest of bank accounts that one can open. They are meant to promote the habit of saving among the citizens while allowing them to use their funds when required.
Savings Bank Account can be opened in the name of an individual or in joint names of the depositors. The minimum balance to be maintained in an ordinary savings bank account varies from bank to bank.
Public sector banks require a cheaper minimum balance compared to private banks.
Things to Consider While Opening a Savings Account
It is advisable to seek the following information from bank before opening the account:
· Minimum balance requirements.
· Penal provision in case the balance falls below the minimum stipulated amount
· Bank charges applicable e.g. ledger fees
· Any extra fees chargeable
· What other benefits are offered by the bank e.g. loan facilities and banking flexibility
. Document Required For Opening a Savings Account (this might vary from one bank to the other)
· Two passport size photographs
· Legal form of identification e.g. Identity Card, Passport
· An introduction letter that acts as a referee from an existing account holder.
· Minimum opening balance
Some of the advantages of a Savings bank account
· Savings account provides very high levels of liquidity. Every day, any time 24 hours, 7 days a week, you have the rights to withdraw your money.
· There is interest paid annually on savings account and this varies from one bank to the other.
· Savings bank account also provides a saving for the future.