A savings account is a type of bank account that enables individuals to deposit money and earn interest on their balance while also allowing them to withdraw the funds as needed. In addition to these core features, a savings account may offer various other benefits and options, making it a popular choice for saving and investing. The specific features of a savings account may vary depending on the bank and the specific type of account. This article will explore all aspects of a savings account.
Features of a Savings Account
A savings account has the following features:
- Banks offer interest to depositors in exchange for keeping their funds with them.
- The interest rate is the amount of money paid by the bank on the amount deposited by the user.
- The interest rate offered by banks is determined by the amount deposited in the account and can be impacted by the Reserve Bank of India’s (RBI) banking policies.
- Interest rates can vary between different banks.
- Paytm Payments Bank offers a 2.5% interest rate on their savings account balance and pays out the interest monthly. This allows users to keep the deposited funds in their account from the previous month at the start of the next month.
Minimum Balance Requirement
- Many banks require savings account holders to maintain a minimum balance in their accounts.
- Some types of savings accounts, such as salary savings accounts or zero balance accounts, may not have a minimum balance requirement.
- Failure to maintain the required minimum balance may result in a penalty.
- Paytm Payments Bank is one of the few banks that do not require savings account holders to maintain a minimum balance.
- A savings account allows you to withdraw money at any time and from any location.
- The bank sets the limits on how much money you can withdraw and how often you can make withdrawals.
- You can easily withdraw money from your savings account using an ATM card or debit card at any ATM.
- Some banks may charge a small fee for using another bank’s ATM to withdraw funds after a certain number of transactions.
- It is important to note the fees and restrictions on ATM usage when using your savings account.
- Most savings accounts come with a debit card.
- Debit cards allow you to withdraw money from ATMs and make payments online and in-person.
- To make a transaction, you need to enter your credentials.
- Paytm Payments Bank offers a digital debit card and the option to get a physical debit card for their savings accounts.
- The Paytm Payments Bank debit card functions like any other bank’s debit card.
Passbook and Cheque Book Facility
- Most banks provide a passbook and a cheque book when you open a savings account.
- The passbook records all your financial transactions and activities, while the cheque book allows you to easily withdraw or deposit funds.
- Paytm Payments Bank offers a digital passbook that can be accessed through the Paytm app to track your transactions.
No Age Bar
- There is no age restriction on who can have a savings account.
- Different types of savings accounts have their own eligibility requirements and benefits, suitable for people of all ages.
- Children over the age of 10, senior citizens, and people with a salary can all open a savings account if they meet the required criteria.
- A savings account allows you to conduct banking transactions online.
- You can use a bank’s mobile banking app or internet banking to perform various functions, such as sending and receiving money, paying bills, investing in stocks, choosing insurance or other investment options, and ordering a cheque book.
- These services can be accessed online, eliminating the need to physically visit a bank branch.
- Savings accounts do not have a time limit and can be maintained for as long as the account holder wishes.
- If a savings account is inactive for two or more years, it may be classified as an inactive account by the bank.
- In this case, the account holder will need to contact the bank to reactivate the account.
- You can close your savings account at any time by visiting your bank in person.
- Online closure is not possible, so you must visit a branch.
- If your account is dormant, it must be reactivated before it can be closed.
- Paytm Payments Bank allows you to close your savings account online by submitting a ticket request.
Why Open a Savings Account with Paytm?
Opening a savings account with Paytm provides you with numerous advantages over other banks in the country. Listed below are a few of the advantages of having a Paytm savings account:
- A savings account does not require a minimum balance.
- The account holder earns an annual interest rate of 2.5% on their deposited funds.
- All digital transactions are free of charge.
- A user can earn a 5.5% interest rate on fixed deposits (FDs), while senior citizens can earn a 6% interest rate on FDs.
- Every savings account holder receives a digital debit card for free.
- A physical debit card can be obtained upon request.
Furthermore, Paytm Payments Bank provides the following services to its customers in order to provide a simple and convenient user experience:
- The app has an easy-to-use interface.
- There is 24/7 assistance available.
- The account opening process is quick and easy.
- The app provides access to a digital passbook.
- The app provides a detailed overview of transactions, organized by category.
There are over 15 million people who use Paytm’s savings account every month to access a wide range of financial benefits, including the ability to make electricity and mobile bill payments, shop online, and make simple payments through the e-wallet or UPI. In addition to these banking services, Paytm also offers a range of other services that can help meet your various needs. To see all that Paytm has to offer, you can download the Paytm app and experience the convenience of digital banking for yourself.
Which bank is best to open a savings account?
What is the tenure for a savings account?
What are the top features of a savings account?
- Internet and mobile banking are available.
- The bank offers competitive interest rates, depending on the type of savings account and bank policy.
- Some accounts require a minimum balance to be maintained.
- The bank has ATMs and allows for online and offline transactions.
- There is no age limit for opening a bank account, and accounts can be operated indefinitely.
- Customers have access to a passbook and a cheque book.
- The process for closing an account is simple.
What are the variants of a savings account?
- Regular savings account
- Zero savings account
- Salary savings account
- Kids savings account
- Senior citizen savings accounts
- Family savings account