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

Short Answer

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.

Detailed Answer

What is a Savings Bank Account?

A Savings bank account falls under the category of a deposit account under which you can deposit money, withdraw cash from an ATM and perform other transactions with it. The other benefit of keeping money in a savings bank account is, you get an interest on the money you kept in the account.

What are the requirements for a savings bank account?

In India, a savings bank account is the most common type of bank account used by people. In order to open a savings bank account, you need to fulfill certain requirements. The requirements are as follows:

1. Proof of Identity and Proof of Age: The first and foremost thing that you’ll require to open a savings bank account is a valid proof of identity. You can provide your Aadhaar Card, Driving Licence, Passport, Voter ID Card, Government/Defence Card, PAN Card, Ration Card, etc to prove you are an adult (above the age of 18).

2. Residence proof: Apart from Identity proof you will also require valid address proof. You can submit a Telephone bill, Salary Slip, Credit Card Statement, Aadhaar Card, etc.

3. Proof of Income: A proof of income is not mandatory but in some cases, it might be required. If you are applying for a credit card along with your savings account or applying for a loan, you might be required to provide you income proof documents.

These were the main two kinds of documents that you will require while opening a bank account.

On top of these documents, you might require to submit a recent photograph along with a couple of signatures on certain account opening forms. Senior Citizens above the age of 60 would require their identity proof to open senior citizen savings account in order to benefit from the extra interest rates.

  • Once you have all the documents ready, you will need to select a bank where you want to open your account. You can compare numerous banks to look out for better interest rates and features.
  • After you have selected a bank and the account variant, you can open your account by visiting your nearest branch or could also open your account online. You can also complete the mandatory KYC (Know Your Customer) process online and successfully open your account.

Some banks require you to sign some physical documents, so you might have to visit the branch once, or a bank executive might come to your house to collect the documents.

Benefits of having a Savings Account

Having a savings bank account comes with many perks. The most important is the interest component. Who hates free money? And by owning a Savings account you get free money in the form of interest on your initial capital.

Furthermore, you get a debit card, using which you can withdraw cash from any ATM, and also use it for online and offline shopping. You even get additional cash-backs and discounts by using a debit card. Some savings accounts provide supplemental insurance for the account holder, free of cost.

When added up, having a savings account is much more effective than not having one in this digital era. Minors can also open a savings account jointly with their parents and enjoy all the benefits mentioned above.

Tagged With: bank accountsavings bank accountsimple interestindian banksknow your customer
Categories: Finance
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