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 (1)

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

Related FAQs

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.

Which is best bank to open Savings account in India?

Looking into the interest rates, minimum savings required in the account, easy online facilities are few of the many options you should consider while choosing a savings account with any respective bank.

What do you need to open a savings bank account in India?

To open a savings bank account in your chosen bank, you will need identity proof, address proof, and a recent photograph. Documents like PAN Card, Aadhaar Card, Passport among others will be needed in the account opening process.

How much money is required to open a Demat account in India?

Many Indian brokers allow you to open your Demat account for free, whereas some charge a nominal fee of Rs 200 to Rs 500. Although there are some recurring charges that you have to bear such as annual maintenance charges, Demat charges, etc.

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.

Can I apply more than one IPO application in my name from different saving bank accounts in same bank or different banks?

Only one PAN card can be used for one application. No matter how many different savings account details you might utilize, if there is the same PAN number in more than two applications, then all of them would be revoked.

What is the minimum amount required for Options Trading in India?

Options are of two types- call option and put option. You need quite an amount of money to trade in options because it has costs such as premium, brokerage. etc. To know more about the topic, read the detailed version.

How much money can you gift tax free to a family member tax free in India?

There is no limitations on the amount of money that can be gift tax free to a family member in India. But, it is essential to check rules and regulations for whom does the clauses apply and whether all kinds of gifts are allowed or not.

How much money can NRI transfer to India in one year?

There is no limit on the amount that can be transferred to India by NRIs. There are certain criteria for being an NRI so it is important to check whether you are considered to be NRI or not. For further details, read through the details ahead.

How much money can be remitted from India?

Remittance plays a huge role in Indian economy as India is the highest receiver of remittance. In 2020, India received USD 83 Dollar as remittance. Therefore, the maximum amount of money that can be remitted from India is USD 2,50,000.