A savings account is the most popular type of deposit account that allows you to earn interest at a specific rate on the deposited sum. For many, it is the perfect financial tool since it is an extremely liquid offering that allows you to store your wealth securely.

 

While these accounts offer only modest interest rates, security and reliability are among their top features. Their flexibility, in terms of withdrawal, makes them perfect if you wish to simply store your money. It even works if you want to set aside some money for dedicated purposes, like an emergency fund.

 

Read on to know more about the features of this type of bank account and how to open a savings account.

Step-by-Step Guide on How to Open a Savings Account

Most banks have streamlined their savings account opening process, making it simpler for customers. However, you will have to go through certain steps to get your savings account opened. 

 

Here are a few simple steps on how to open a savings bank account:

1. Compare Different Options

When opening a savings account, it is crucial to choose the right bank that serves your financial needs. Here are some of the key factors that you must consider when opening a savings account:

  • Annual Percentage Yield (APY): APY offered by a savings account determines the returns you can earn, which generally ranges between 3% and 6% p.a.

  • Minimum Balance Requirement: It is advisable to choose an account that requires you to maintain zero or low minimum balance

  • Fees and Charges: Ensure that financial institutions generally charge you lower fees for certain ancillary services, including SMS alerts, issue of cheque book, etc

  • Accessibility to ATMs: ATMs allow you to withdraw cash instantly from your savings account, and hence, check if the bank has a proper ATM network

  • Branch Accessibility: Ensure that the financial institution also offers high accessibility to their branches so that you can visit the branch to avail of services relating to a savings account

  • DICGC Insurance Cover: Deposit Insurance and Credit Guarantee Corporation (DICGC) is a specialised division under RBI that insures deposits of up to ₹5 Lakhs 

2. Gather the Required Details and Documentation

When opening a savings account, you will need to provide certain basic details to the financial institution. In addition to this, you will also be required to furnish the following documents:

  • Government-issued ID proof like Aadhaar card, PAN card, voter’s ID, driver’s license, etc.

  • Address proof, such as an Aadhaar card, voter’s ID, utility bills, etc.

  • Income proof in the form of ITR returns or Form No. 16

3. Select a Single or Joint Account 

Another important factor is to decide whether you wish to open a single account or joint account. Both these accounts offer different sets of benefits. However, if you get a joint account opened, the co-signer needs to be present and provide their own details.

4. Submit Your Application

Once you have filled out your application form, agree to the bank’s terms and submit the form. The financial institution will verify your details and approve your request to open a savings account.   

5. Make an Initial Deposit

Some savings accounts require you to transfer a minimum amount at the time of opening them. On the other hand, you can choose certain accounts that have no minimum balance requirement.

6. Set up Online Banking

With fintech and online banking, every bank and financial institution offers digital services. Once your account is opened, you can also set up the online banking feature so that you can access and control your account remotely, even from the comfort of your home.

How Do You Open a Savings Account Online?

Thanks to digitisation, opening an online savings account is possible. Almost all banks offer online savings accounts, with personalised features and a fast-paced opening process. 

 

Here is how to open a savings account online:

  • Visit the bank’s website where you wish to open your savings account

  • Fill in the application form and submit it with the required documentation

  • The bank will verify your details and provide approval for opening a savings account

  • Once your online savings account is opened, you can add funds to it through a Fund Transfer or a cheque  

 

Opting for a savings account can help you take control of your finances and store your excess wealth securely. You can easily compare different financial institutions and apply for the best-suited savings account without any hassles on Bajaj Markets.

FAQ on How to Open a Savings Account

What are the types of savings accounts in India?

Apart from regular savings accounts, there are other types of savings accounts, with each catering to different financial needs. For instance, a zero-balance savings account does not require you to maintain a minimum balance.

 

On the other hand, there are also some savings accounts that are specifically designed for a particular section of society. This includes women, children,  and senior citizens, among others.  

What are the basic eligibility criteria to open a savings account?

If you are wondering how to open a savings account, you must first check if you meet the bank’s eligibility criteria. Note that the eligibility criteria to open a savings account differ depending on the bank you choose. However, you must be an Indian resident over 18 years of age to qualify for an account with most financial institutions. 

 

How long does it take to open a savings bank account?

With the digitalisation of financial services, you can get an online savings account opened within an hour of applying.

How much interest can I earn on my balance maintained in a savings account?

Savings accounts generally allow you to earn interest rates ranging between 3% and 6% p.a. on your deposited sum. 

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