A savings account is one of the most basic types of bank account that allows users to save money and earn interest on the deposited amount with the flexibility to withdraw it anytime. Other than this, a savings account also offers users a number of benefits and features that make it one of the most suitable investment options.
This blog explains all the features of a savings account. These features may, however, vary depending upon the various types of savings accounts and their banks.
Features of a Savings Account
A savings account has the following features-
Banks provide interest rates to the depositors for holding their funds with them. The interest rate is the amount of money paid by the bank to the user’s deposited amount. The interest offered by the banks depends upon the amount deposited in his/her account. Additionally, the ongoing banking policies as set by the RBI also impact the interest rates offered by the banks. It is also important to note that the interest rate varies from one bank to the other.
Minimum balance requirement
Banks set a minimum balance requirement which is to be managed and maintained by the savings account holders themselves. Even though, there are a few types of savings accounts such as salary savings account, or zero saving account which do not require one to maintain a minimum balance; a few others require a minimum balance to operate the account. If an account holder fails to do so, he/she will have to bear a penalty for the same. However, there are only a few banks like Paytm Payments Bank that do not require a savings account holder to maintain any minimum balance in their accounts.
With a savings account, a user has the flexibility to withdraw a certain amount of money anytime and from anywhere. The withdrawal amount and number of times a withdrawal can be done is decided by the bank.
If you have a savings account, you can easily withdraw money from the ATM. With an ATM card or a debit card, you can easily withdraw money from any ATM. However, it is important to note that a minimal amount of money is deducted in case you use another bank’s ATM after a set number of transactions to withdraw the money.
If you have a savings account, it is most likely that you will also be given a debit card with your welcome kit. With a debit card, you can easily withdraw money from the ATM, and/or make payments at both, online and offline platforms. All you need to do is enter your credentials to authenticate the transaction. On the other hand, however, when you open a savings account with Paytm Payments Bank, you are given a digital debit card and an option to obtain a physical debit card too. The Paytm Payments Bank savings account debit card works the same way as any other bank’s debit card.
Passbook and cheque book facility
Almost all the banks provide a passbook and a chequebook as a part of your welcome kit when you open a savings account. A Passbook maintains a record of all your financial transactions and activities, and a chequebook is meant for easy withdrawal or submission of money. When you opt for a Paytm Payments Bank savings account, you get a digital passbook that helps you track the transactions easily with just a tap. You can also raise a request for a cheque book on the Paytm mobile application.
No age bar
A savings account sets no age bar for the account holder. Each type of account has its own eligibility conditions and benefits; thereby catering to individuals of all age groups. Whether it is a Child savings account (minor above the age of 10), senior citizen savings account or a salary savings account- anyone of any age can open a savings account by fulfilling the desired eligibility criteria.
Savings account allows the users to make transactions online. One can use a bank’s mobile banking application or can opt for net banking to perform various banking functions like- sending money, receiving the same, paying bills, investing in stock markets, opting for insurance or other investment options, ordering a cheque book, etc. Instead of reaching out to the bank’s branch physically, one can avail all the facilities online.
Savings accounts are continuous in nature, which means that one can manage and maintain the account as long as he/she wants. There is no bar on the maximum time period to hold money in one’s savings account. Although, you must remember that if your account stays inactive for a period of 2 years or more, it will be termed as an inactive account by the banks. And in such a case, you will have to further connect with your bank to activate the account.
You can close your savings account whenever you wish to do so. All you need is to connect with your bank. Remember that you cannot close your account online, you will have to visit your bank’s branch physically to close your account. Furthermore, if your account is dormant, you will have to first activate it in order to close it later. However, a savings account with Paytm Payments Bank can be closed online just by raising a ticket request.
The above features highlight the importance of having a savings account. Additionally, you should definitely consider these features before choosing the bank you want to open an account with. However, the features of various savings accounts might differ from bank to bank. For example- Bank A offers an interest rate of 6% p.a. as compared to Bank B which offers an interest rate of 5.4%p.a. However, Bank B has a higher withdrawal limit, unlike Bank A. Hence, every bank has its own set of banking guidelines and criteria to offer the users. It depends upon the individual’s requirements and his/her preferences to make the choice.
Why Open a Savings Account with Paytm?
While you are in the process of deciding which bank to open savings account with, you must consider Paytm Payments Bank. Opening a savings account with Paytm offers you multiple benefits as opposed to various other banks in the country. Listed below are a few of the benefits of having a savings account with Paytm-
- There is no minimum balance requirement
- The account holder is given an interest of 2.5% per annum on the deposited money
- All the digital transactions are absolutely free of cost
- A user can earn a 5.5% interest rate on regular FDs whereas a senior citizen is eligible for a 6% interest rate on FDs
- Every savings account holder gets a free digital debit card
- A physical debit card can be obtained after request
Additionally, Paytm Payments Bank offers the following to its users for an easy and convenient user experience-
- Easy to use app interface
- 24*7 assistance
- Quick and easy account opening process
- Access to digital passbook
- Availability of a chequebook
- Detailed overview of the transactions based on various categories
Owing to these benefits, more than 65 million saving account holders have shown their trust for Paytm and its services and thus, make the most of a great number of financial advantages, every day.
Paytm does not limit its services to banking solutions only, it also targets multidimensional needs like electricity/mobile bill payments, e-commerce services, easy payments through e-wallet or UPI, etc. Explore the Paytm application and witness the digital goodness on your own!
- Netbanking and mobile banking facility
- Competitive interest rates (depends on savings account variants and bank’s policy)
- Minimum balance requirement to manage the account (varies as per the savings account variants)
- ATM facility along with the option to do online and offline transactions
- No age bar to open a bank account
- No fixed tenure to operate the account
- Passbook, chequebook are also provided
- Easy exit process
- Regular savings account
- Zero savings account
- Salary savings account
- Kids savings account
- Senior citizen savings accounts
- Family savings account