Syndicate Bank offers only two types of Savings Accounts to its customers. One is the regular Savings Account while the other one is a zero balance savings account. Let us discuss both these accounts in details.
Savings Bank Account – this is a regular savings account which provides regular banking facilities and requires the maintenance of an average quarterly balance. The aspects of this account are discussed below:
This account, like any other savings accounts, allows individuals to deposit or withdraw their money from the account using cheques or withdrawal slips.
Individuals as well as corporations and agencies approved by the Reserve Bank of India can open this account with the bank
The individual applying for a savings account should submit his KYC (Know Your Customer) documents which include identity proof such as Aadhar Card or Voter ID Card, address proof and two recent photographs for verification purposes.
An introduction by any of the bank’s existing accountholder is required to open this account.
The applicant wishing to open the account should also furnish his Permanent Account Number (PAN) or General Index Register (GIR) Number or a declaration in Form 6 or Form 61 as specified by Section 139A of the Income Tax Act.
A minimum average quarterly balance would have to be maintained in the account as specified by the bank periodically. This balance depends on the population of the area in which the branch of the bank is located and also depends on whether a cheque-book is required by the accountholder or not. If the cheque book is required, a higher balance would have to be maintained and vice-versa.
If the minimum average quarterly balance is not maintained in the account, the bank would levy penalty charges.
The savings account would earn a rate of interest which would be calculated on a daily balance method and would be credited in the account after every 6 months
Cheques or dividend warrants drawn in name of the individual holding the account would be collected by the bank. However, instruments which are endorsed in name of the individual holding the account would not be collected by the bank in this form of savings account.
Any form of transaction which is business related should not be routed through the account. If this happens, the bank may collect interest on the transactions and may also close the account.
The account also offers the additional feature of a group life insurance cover between Rs.1 lakh to Rs.5 lakhs, in multiples of Rs.1 lakh, can be availed by accountholders if they are aged between 18 years to 64 years.
SyndSamanya Savings bank Account
This is a simple zero-balance savings account with the following features:
This account can only be opened from CBS or non-CBS branches.
Any individual can open this account
There is no requirement of maintaining any balance in this account because this is a zero balance account
The account earns an annual rate of interest of 4%
There is no limit on the number of credit or cash receipts made on the account
Cash withdrawals are limited if done through the branch. The limit is 50 transactions every year on the branch counter. If this number is exceeded, a charge of Rs.10 per transaction would be levied on the account. However, if the withdrawal is done through an ATM, there is no limit on the number of withdrawal transactions.
If the customer wants a cheque book with the account then he would have to maintain a minimum balance in the account which would depend on the requirement of minimum balance in the above-mentioned Savings Bank Account. If the cheque book is not required then the account does not require the maintenance of any balance.
The collection charges for locally drawn cheques are nil but for outstation cheques there is a limit. If the cumulative value of outstation cheques is up to Rs.50, 000 in a year, there would be no charges levied. If the cumulative value exceeds Rs.50, 000 then normal applicable charges would be levied.