Savings Account

In my last post, I talked about the significance of women handling finances. This one sets the pace on how to start handling finances with opening a Bank account a shorthand for savings account.
Savings account is used to maintain the regular flow of funds. Banks provide interest ranging between 4% and 7.1% on balances kept in this account.
This is the first financial product for many of us. Some of the many benefits of savings account are as below:
  1. You can deposit and withdraw funds at any time.
  2. You can transact online, in person or at ATMs.
  3. You get interest on the amount kept in account.
As with everything, some caveats are applicable here too:
  • An amount up to Rs.40,000 (a few type of accounts allow higher limit) can be withdrawn from ATMs. Larger cash withdrawals are limited by operating hours of Bank.
  • The interest rate is on daily balance and is simple interest in most cases. Adjusted to inflation, the interest benefit is negative.

How to open a Savings Account:

Opening Account in Digital Space
This might be subject to changes under recent AADHAR ruling by Supreme Court.
Keep Aadhar and PAN card handy and fill in a few details and VOILA, your account is opened. Pasting few links:
  1. SBI: https://www.sbiyono.sbi/wps/portal/accountopening/insta-account#!/customeraccountOpen
  2. ICICI: https://savingsaccount.icicibank.com/SBAOF/newcustomer.action
  3. Axis Bank has a women savings account product: https://application.axisbank.com/webforms/onlineform/saving-account/web/savingsaccount.aspx?cta=listingpage-womensSavingAccount&_ga=2.87419600.934739862.1538841063-909245309.1538841063
I have listed just three but almost all Banks open savings account online. Opening Savings Account in Online Plus Offline Space With the recent order dis-allowing the usage of AADHAR by non government institutions, you can utilise the option of filing details online and completing the procedure offline in a Branch. Opening Savings Account in Offline Space Alternatively, you can choose to go completely offline and open a savings account. You will need the following:
  1. Two passport sized photographs
  2. One ID proof – Use PAN card. Due to regulatory requirements, Banks end up asking for your PAN card and this also serves as ID card.
  3. One Address proof – Many options here – Voters card, Driving license, Electricity Bill, Telephone Bill, etc.
  4. Passport works as both ID and Address proof. So if you have one, only that would work. Although PAN card is also required.
The longest journey starts with a single step Lao Tzu

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