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:
- You can deposit and withdraw funds at any time.
- You can transact online, in person or at ATMs.
- 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- An amount up to Rs.40,000 (a few type of accounts allow higher limit) can be withdrawn from ATMs.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:
- SBI: https://www.sbiyono.sbi/wps/portal/accountopening/insta-account#!/customeraccountOpen
- ICICI: https://savingsaccount.icicibank.com/SBAOF/newcustomer.action
- 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:
- Two passport sized photographs
- 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.
- One Address proof – Many options here – Voters card, Driving license, Electricity Bill, Telephone Bill, etc.
- 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