Saving Account

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SAVING ACCOUNTS
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What are Saving accounts?

• Commercial Banks, Co-operative Banks and Public
  Sector Banks accept deposits by way of opening
  saving bank account with them
• The saving account is generally opened in bank by
  salaried persons or by the persons who have a
  fixed regular income. This facility is also given
  to students, senior citizens, pensioners, and so
  on

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SAVING ACCOUNTS IN INDIA

• Saving accounts are opened to encourage the
  people to save money and collect their savings.
• In India, saving account can be opened by
  depositing ?100 to ?5000. The saving account
  holder is allowed to withdraw money from the
  account as and when required.

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Features of saving account

• The money can be withdrawn either by cheque or
  withdrawal slip of the respective bank.
• The rate of interest payable is very nominal on
  saving accounts. At present it is between 4 to
  6 p.a in India. Some banks provide 7 rate of
  interest
• Saving account is of continuing nature. There is
  no maximum period of holding.

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Facilities provided by saving accounts

• Electronic clearing System (ECS) or E-Banking are
  available to pay electricity bill, telephone bill
  and other routine household expenses
• Generally, equated monthly installments (EMI) for
  housing loan, personal loan, car loan, etc., are
  paid (routed) through saving bank account

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Advantages of saving accounts

• Saving account encourages savings habit among
  salary earners and others who have fixed income.
• It shows income of a salaried and other person
  earned during the year
• It aids to keep records of all online
  transactions carried on by the account holder

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Thank You