How much money can we keep in savings account in India?

Short Answer

Savings bank account is one of the most popular banking services. There is no maximum amount of money that needs to be maintained. A person is liable to keep any amount of money in the savings bank account.

Detailed Answer

Introduction to Savings Account:

• Savings account is offered as one of the banking services.

• In this, the account holders can deposit their money and earn interests.

• You can withdraw it while depositing and earning interest at the same time.

• It is one of the most common features and are offered by all the banks and other financial institutions.

• Usually, savings banks are nationally secured.

• It allows maximum possibility of liquidity and is quite flexible.

• It is very easily accessible and easy to use digitally via Mobile phone, Laptop and Computers.

• There are various perks on opening a savings account in a bank such as- safely, maintenance of funds, ease in managing personal finance, growth in the money.

• The interest you receive on your savings account is subject to income tax.

• Nowadays, individuals are even allowed to open accounts with zero balance.

• The interest rates on savings accounts varies from bank to bank so, individuals should research all the options available before putting in the application for the bank account.

How to open a savings bank account?

Anyone is allowed to open a savings bank account. All an individual needs to open an account is KYC details that is Know your Customer details.

The individuals need to fill up a form of that specific bank where they are interested in opening the account and submit the required identification, address proof and other KYC documents.

Minimum and Maximum amount to keep in Savings Account:

When it comes to savings bank- individuals have two options i.e., zero balance and regular savings account.

For regular savings account, holders need to maintain a certain minimum amount in their account, and it varies with the bank. Some banks even expect the holders to deposit when they open an account and that is essentially Initially investment.

For maximum amount to keep in Savings bank, there is no limit. You can any amount in savings bank without any hesitation.

As everyone is concerned about the tax implications- so according to the law interest up to INR 10,000 is tax-free under the Income Tax Act 80TTA and the tax-exempt status on a savings account interest rate is up to INR 50,000 for senior citizens through Income Tax Act 80TTB.

Tagged With: moneysavings accountbankingminimum amountmax amount
Categories: Finance
Ask your query and our expert community would be happy to help
Discussion (3)

    Savings account in India are the best way to keep liquid cash safe. It is good that there is no maximum limit on this account type, so that average Indians can securely park their funds as well as access them whenever required.

    Banks are the best choice when it comes to the security of the money because they don't impose any service fees, provide an average return of 2 to 3%, and there is no  lock-in period also, which allow us to access our money whenever we want.

    We need to change content in Indiabulls. I am part of Indiabulls. Request you to connect at 9833295674.

Related FAQs

What is PPF or Public Provident Fund in India?

Public Provident Fund Scheme is a saving scheme that comes with tax benefits. Ministry of Finance introduced this scheme in the year 1968. The main objective of PPF is to encourage general people to mobilize their small savings. The interest offered on these schemes are not taxable. Precisely, PPF is an investment with non-taxable returns.

What is Fixed Deposit in Bank? Types & Features

A fixed deposit is one such financial instrument which will help you deposit a sum with a bank for a predetermined period of time and the bank pays an interest on that sum. In essence, it’s a way of lending money to a bank, the opposite of taking a loan. These are sometimes even referred to as bonds or term deposits.

Which is better investing in equity, mutual funds, or keeping money in banks?

Equity and mutual funds are perfect if you want to invest in companies while seeing your money grow in a short period. Moreover, the chances of compounding your investments are higher. But the risk associated is equally greater considering the growth of companies and their performance in offering returns. But then keeping money in the bank is the safest way to keep your earnings. But then, due to inflation and low returns on interest, that value of the money kept might be cut down drastically.

How much money do you need to open a savings bank account in India?

To open a savings bank account in a private bank, you will have to make an initial deposit of around Rs 5,000 to Rs 10,000. However, there are some public-sector banks and other online banks where you can open your account without any deposit and get all the banking facilities.

How to add money to Zerodha using UPI?

Adding money to Zerodha using UPI is the most commonly used method and is the most popular among the other methods. It is totally free and can be done with the help of any UPI application like Google Pay or BHIM UPI. This process can be done seamlessly with the help of Zerodha's web application as well as the mobile application- "KITE".

How to save Rs. 5000 in 6 months easily?

Saving Rs. 5000 in 6 months does not need a lot of effort. Creating proper budget along with a few simple daily practices, reducing your debt and investing wisely is the key here.

What is the difference Liquid funds vs. Savings accounts?

Based on return liquid funds outperform savings account by anything between, 2-4 % points which is 50-100 % higher return than the savings account. So, purely on the basis of returns investing in liquid funds seems a better option.

What is the best international money transfer app in India?

Wise is one of the cheapest ways to send money internationally as compared to other available options in India. The only limitation of Wise is that it does not integrate with e-commerce online payments.

How to Close PPF Account? Withdrawal, Extension & Closure Process

To close a PPF account, there are three ways in which it can be executed. They are by withdrawing the entire PPF account balance, extension fo PPF account without any clarification, and extension fo PPF account with a further contribution.

How to withdraw money from Zerodha Trading Account?

To withdraw money from your Zerodha trading account, you need to place a withdrawal request by logging into Zerodha Console. Withdrawal of money is completely free. As per regulations, the withdrawal money will be credited only to the bank account which is mapped with Zerodha.