Savings Bank accounts help individuals, house-wives, minors and others in inculcating a habit of thrift in themselves. The holders of these accounts get various banking facilities from banks while earning some interest on their savings.
The salient features of Savings Bank Accounts are as under :
|Eligibility||Adult individuals, singly or jointly with other adults
Minors, who have attained 10 years of age.
Trusts, Societies and other organizations approved by RBI.
Introduction by an account holder having a satisfactory account with the bank for atleast six months.
One of the following as proof of identity :
(i) Passport (ii) Voter ID card (iii) PAN Card
One of the following as proof of address : (i) Credit Card Statement (ii) Salary slip (iii) Income/Wealth Tax Assessment Order (iv) Electricity Bill (v) Telephone Bill (vi) Bank account statement (vii) Letter from reputed employer (viii) Letter from any recognized public authority (ix) Ration Card
Permanent Account Number (PAN) or declaration in Form No. 60 or 61 as per Section 39A of I.T. Act 'No frills Accounts' are opened for customers, who are not in a position to submit documents listed above. These accounts can have a credit balance not exceeding Rs. 50,000/- and credit summations not exceeding Rs. 1,00,000/- in a year.
|Minimum amount||Rs. 100/- to Rs. 10,000/-.
The Minimum amount varies from bank to bank. The amount also varies in a bank on the location of the branch, type of branch and type of account (with or without cheque book).
Not maintaining the minimum balance invites penalties and may also lead to closure of the account by bank.
|Maximum amount||No Maximum limit|
|Interest Rate||The Interest Rate is as notified by RBI.
The current Interest Rate is 3.5% per annum.
The interest is applied on accounts at half yearly rests.
|Tax benefits||Not Available|
|Interest Taxability||Interest upto Rs. 10,000/- for individuals & HUFs is exempt from income tax w.e.f 1st April 2012 ( for Assessment Year 2013-14).|
A pass book is issued in all Savings Bank Accounts. Some banks send statements of accounts at monthly intervals.
Local and outstation cheques are accepted for realization. Service charges are recovered for cheques returned unpaid.
Amount can be withdrawn in cash from banks by cheque or withdrawal forms or from ATMs. Pass books are required for withdrawing cash by a withdrawal form.
Payment of cheques can be stopped by the holder(s) of the account.
Immediate credit is usually provided for outstation collections up to Rs 20000/- for accounts that are satisfactorily conducted.
Banks will pay interest for delays in collection of outstation cheques.
No operation in the account for 12 / 24 months, makes an account 'Dormant'/'Inoperative'.
Banks offer various other facilities/services with these accounts like ATM cards, ATM-cum-Debit cards, Credit cards, Online or Internet banking etc.
Standing instructions are accepted by banks in these accounts, subject to payment of stipulated charges. Service charges and rules vary from bank to bank.
Overdraft facility is not available in Saving Bank Accounts.