Savings Account Facts
Savings bank accounts are the simplest bank accounts one can open. They aim to promote the habit of saving among citizens while allowing them to use their funds when needed.
The savings bank account can be opened in the name of an individual or in the joint name of the depositors. The minimum balance to keep in a regular savings account varies from bank to bank.
Public sector banks require a cheaper minimum balance than private banks.
Things to consider when opening a savings account
It is advisable to request the following information from the bank before opening the account:
· Minimum balance requirements.
· Penal provision in case of balance lower than the stipulated minimum amount
Applicable bank charges, e.g. general ledger charges
· All additional costs to be borne
What other benefits are offered by the bank, e.g. loan facilities and banking flexibility
. Document required for opening a savings account (this may vary from bank to bank)
Two passport photos
Legal form of identification, e.g. ID card, passport
· A letter of introduction that acts as a referee for an existing account holder.
Minimum opening balance
Some of the benefits of a savings account
· The savings account offers very high levels of liquidity. Every day, anytime 24/7, you have the right to withdraw your money by email if the bank is closed.
· There is interest paid annually on the savings account and this varies from bank to bank.
· The savings bank account also provides savings for the future.