Savings Account Documents Required
One of the simplest of bank accounts available to customers is the savings bank account. In fact, it is highly instrumental in encouraging people to save money and collect their savings.
It aids the savings account holders to keep their surplus money with the bank and earn an interest while providing the flexibility for withdrawals at any time.
A savings bank account can be opened with simple Know Your Customer (KYC) documents:
Proof of identification (any one of the following):
- PAN card
- Driving License
- Voter’s ID
- Employee ID
- Bank passbook
- Ration card
Proof of address (any one of the following):
- Utility bill (telephone, electricity, water, gas) – less than 2 months old
- Letter from a recognized public authority verifying the customer’s residence address
- Bank passbook or Bank account statement
- Voter’s ID
- Ration card
LIC policy/ receipt
Completed application form
KYC guidelines help prevent misuse of the banking system for money laundering, criminal purposes and other fraudulent activities. It also helps banks to understand the customers better.
A savings bank account can either be opened by an individual in a single name or jointly with others. In case of joint accounts, applicants are required to establish their identity and address proofs independently.
Advantages of a savings bank account:
A savings account may not be the most interesting financial product available, but it can serve as an efficient cornerstone of your finances. Following are the reasons why everyone should have one:
- Finances that are set aside but available when you need them: Money kept in a savings bank account is safe and gathering interest, and still easily accessible in the event of a financial emergency. There are generally little to no fees for withdrawals from a standard savings account.
- Low or no fees: A savings account has minimal monthly maintenance fees, which can often be eliminated. One can reduce or completely get rid of the service fees by maintaining a minimum savings account balance or setting up automatic transfers. Depending on the type of account held and the size of your account balance, there may be little or no fees for cash withdrawals.
- One can get started with minimal cash: One does not need huge money to be able to start a savings bank account. Most banks usually require a minimum amount to get started, thereby, making it easier for their initial customers.
- A stepping stone to one’s long-term goals: A savings account can be a good place to park your funds and let it grow until one is ready to move it to other longer-term deposit or investment accounts.
Additional facilities: One can use a savings account to make an electronic funds transfer to other accounts. It also allows internet banking facilities, online purchases and shopping. Moreover, it permits immediate access to an savings account holder’s money with the help of an Automated Teller Machine (ATM).