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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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.

Can we open demat and trading account without Aadhaar card in India?

Yes, you can open a trading and Demat account without an Aadhaar card but it's not possible to do that in the online method. To open your account without an Aadhaar card, you will have to visit the broker's branch and complete the process there.

Can I open 2 demat accounts with the same bank account?

Absolutely, you can open two or more demat accounts with one single bank account. You can, later on, add other bank accounts to your demat account as per your requirements.

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

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.

Is opening a demat account free in India?

Yes opening a Demat account in India might be free with some brokers but not all. Apart from the opening charges, a Demat account is not completely free. You will have to pay an Annual Maintenance charge or Demat fee, every year.

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.

What is need and importance of Demat Account in India?

The stock market has seen significant changes since the introduction of demat accounts. Demat refers to “Dematerialization” of shares. Know the meaning, need and importance of Demat Account in India. Simply speaking, Demat account allows you to store securities in electronic form.

Can I open a trading account using a joint bank account?

Yes, you can open a trading account using a joint bank account. But, you have to keep a few things in mind before opening a trading account.

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.