Watch your savings grow

A savings account typically refers to an account in which one places money to earn a small amount of interest.
(SB account) is meant to promote the habit of saving among the people. In most cases, one can withdraw money from a savings account at any time, at least at any time the bank is open, or one has access to the banks ATM. Not only banks, but also credit unions, and money market funds companies can offer a savings account to customers. Apart from providing interest, banks and credit unions keep your money in a locked and fireproof safe.

The minimum amount to open an account in a nationalized bank is Rs 100. If cheque books are also issued, the minimum balance is Rs500. However in some private or foreign bank the minimum balance is Rs 500 or more and can be up Rs. 10,000. One cheque book is issued to a customer at a time. A Savings account can be opened either individually or jointly with another individual. In a joint account only the sign of one account holder is needed to write a cheque. But at the time of closing an account, the sign of the both the account holders are needed. The interest rate varies between 2.5% and 4%. In Savings Bank account, bank follows the simple interest method. The rate of interest may change from time to time according to the rules of Reserve Bank of India. One can withdraw his/her money by submitting a cheque in the bank and details of the account, i.e the Money deposited, withdrawn along with the dates and the balance, is recorded in a passbook.

It is advisable to seek the following information from bank before opening the account:

Minimum balance requirements.

Penal provisions in case the balance falls below the minimum stipulated amount.
Penalty in case of return of cheques issued or instruments sent on collection.

Collection facilities etc. offered and charges applicable.

Details of charges, if any for issue of cheque books and limits fixed on number of withdrawals, cash drawings, etc.

Any person competent to contract and satisfactorily introduced to the Bank may open an account in his/her own name. He/She may not open more than one such account. Accounts may be opened in the names of two or more persons . A savings bank account may be opened in the single name of a minor and may be operated upon by minor, if he/she has completed the age of-10-years and is able to read and write. Maximum balance to the credit of such account should not exceed at any time Rs.1,00,000/-.For accounts of minors above-14-years,there is no limit to maximum balance. A savings bank account may be opened in the name of minor jointly with his/her natural guardian i.e. father or guardian i.e. mother or both.

An account can be opened in the name of club, society, provident fund and trust, subject to satisfaction of conditions stipulated by Reserve Bank of India/the bank from, time to time.

Accounts can be opened in the names of specified institutions/agencies, if they are registered under the Societies Registration Act or Companies exempted from using the words 'Ltd. 'or 'Pvt Ltd. 'as part of their names as per the Companies Act.1956 and those working for socially desirable purposes and serving weaker sections of the society and those exempted from paying Income tax under Income Tax Act 1961.
Further, Savings Bank account can also be opened in the name of Government Departments / bodies / agencies in respect of grants / subsidies released for implementation of various programmes / schemes sponsored by Central / State Government.

Application to open an account must be made in Bank's prescribed account opening form. It should be made, in person, in the presence of Banks authorized officer and the applicant must fill in all the columns of the application form. Each applicant will be required to sign a declaration to the effect that he has read and accepted the Savings Bank Rules. Illiterate depositor, unable to write, must attend in person and affix his/her thumb impression on the account opening form in the presence of an approved witness, who is known both to the bank and the applicant. Such illiterate depositor should lodge his/her recent photograph with the bank, duly attested by a person known to the bank. At the discretion of the Bank, illiterate persons are allowed to open accounts jointly with persons who are literate or illiterate and closely related to them, to be operated upon jointly. No cheque book facility will be extended in the single or joint savings bank account of the illiterate depositors.

Every account holder should submit copies of his/her recent passport size photograph at the time of opening an account.
Identifications :Any of the following documents bearing photograph of the holder is also accepted for the purpose of identification a) Valid Passport b) PAN Card c) Driving Licence d) Voters ID Card e) Defence ID Card f) Identity Card of employees of central/State Govt. & Public Sector Undertakings g) Senior Citizens Card

Costs Involved Sometimes, but not always, banks charge fees for having a savings account. For this reason, you should always shop around and compare what different banks are offering. Things you should look at include:

Fees and services charges on the account

Minimum balance requirements (Some banks charge a fee only if you don't keep a certain amount of money in your account at all times.) Interest rate paid on your balance

Nomination:

You can file a request for nomination for both a single account or a joint account in Form No DA-1. You can nominate any person to receive the amount lying in the account in case of your death or the death of any of the joint accountholders. Nomination facility is available in case of individuals only, and to other entities like partnership firms, limited companies and trusts, etc. Nomination is also available to accounts operated by proprietors in respect of their business concerns, including current accounts. In case of minor accountholders, a nomination can be made by a person who is lawfully entitled to act on behalf of the minor. However, if your nominee is a minor, you will have to appoint a person to receive the money during the time the nominee stays a minor. Steps: Fill the nomination form Give all the nominee detail and required documents In case of any happening certain or uncertain,natural or artificial the bank will inform the nominee A nominee can be anyone of our choice.

Introduction
While opening a saving account there has to be one introducer to it,it means that there should be one account holder in the bank whom we know and obtain sign on it. The bank clerk verify the introducer and his signature. Some bank do not ask for introducer if all the required are propely submitted. The account is to be introduced by an existing account holder having satisfactorily conducted account with the Bank. Whenever a deposit account is opened and introduction is taken from an existing account holder; the following conditions must be fully satisfied: (a) The account of the introducer should be minimum six months old and (b) The account of the introducer should have been satisfactorily and actively conducted. (c) The account of the introducer should be KYC compliant. It means the proposed introducer has complied with the KYC requirement in respect of the account maintained with the Bank.

Pass book
Bank issues passbooks/statement of accounts to account holders. For withdrawing money from an account through a withdrawal slip, production of pass book/statement of account/identity card issued by the branch is necessary. The Bank will not be responsible for any loss caused to the depositor, if an unauthorised person obtains the possession of the pass book/identity card/statement of account and fraudulently withdraws from the account. Any change of address should immediately be intimated to the Bank and the pass book sent for necessary alterations with new address proof document required under KYC norms. Pass book/identity card/statement of account will be issued free of charge at the time of opening an account and in continuation of the original. But if the pass book/identity card/statement of account is lost or spoiled, the depositor will have to pay prescribed charges for issue of duplicate pass book/identity card/statement of account. In case of accounts in which withdrawals are made by cheques, the pass book should be sent periodically to the bank for updating after the withdrawals or as may be convenient.

When you open a savings account you'll get a small book called a register (like a checkbook register) where you write your beginning balance (the amount you originally deposit) and all of your future deposits and withdrawals. This tool helps you keep track of how much money you have.

Each month, your bank (or credit union) will send you a statement of your account either in the mail or by e-mail if you prefer. The statement will list all of your transactions as well as any fees charged to your account and interest your money has earned. The only other thing is to remember to make deposits into your account and sit back and watch your money grow! For more personal finance and savings information.

 Step

1: Stop Automatic Deposits or Withdrawals Step 2: Determine if You Need to Keep a Minimum Balance Step 3: Ensure Your Account Has a zero or Positive Balance Step 4: Request Account Closure

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