Key features of Savings Accounts in Bank

The most traditional way to save money is to put your money into your savings accounts, and then leave the money to generate interest. These accounts help the customers to set aside a portion of their liquid asset while earning a monetary return. Saving accounts are opened to encourage people to save money for future use. The money that is being saved every month can be put into these accounts in the bank so that it remains safe and can be used at the hour of need.  Though this type of account can be opened by any individual but the general trend that is seen in the banks is that mostly salaried persons or the persons who have fixed income open savings accounts.  Moreover opening savings accounts in a bank is the very simple and easy, all you need to do is go to a bank with proper and correct identification and ask the bank to open an account for you.

There are certain key features of savings accounts in bank which are as follows:

·         The most important objective of savings accounts is to promote savings and encourage an individual to save money for future use.

·         No restriction is there on the number of deposit you make and the amount of deposits. In India, a mandatory PAN (Permanent Account Number) details are required to be for doing cash transactions of more than Rs. 50,000

·         The money can be deposited or withdrawn any time.

·         Money can be withdrawn through ATM, by cheque or with the help of withdrawal slip of the respective bank.

·         The rate of interest is very nominal in saving accounts. At present it is between 4% and 6% per annum in India.

·         There is no maximum period of holding the account.

·         A minimum amount has to be kept on account to keep the account running and functioning.

·         Loan facility is also provided against savings accounts.

·         Electronic clearing System (ECS) or E-Banking or net banking are available to pay various bills and making online transactions.

·         Generally, equated monthly instalments (EMI) for housing loans, personal loans and car loans are paid through saving bank account.

Summary:

Opening savings accounts in a bank is one of the best and secured way to save your money for future use.