Savings Account

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Savings Account
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What are Savings Account

• Commercial Banks, Co-operate Banks and Public
  Sector Bank accepted deposits by way of operating
  savings account with them
• The saving account is generally opened in the
  bank by salaried persons or by the persons who
  have a fixed regular income. The facility is also
  given to students, senior citizen, pensioners and
  so on

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Savings Account in India

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

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Features of Savings Account

• The money can be withdrawn either by cheque or
  withdrawal slip by 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 a continuing nature. There
  is no maximum period of holding.

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Facilities provided by Savings Account

• 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 the saving bank account.

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