Savings Bank Account in India : An Overview & Process

Online Bank Account Opening is Digital, Safe, Convenient, Instant & Paperless.

Bank accounts are an essential part of modern-day life. They provide a safe and secure place to store money, and they also offer a range of financial services that can help people manage their finances more effectively. In India, there are several types of bank accounts available, each with its own set of features and benefits.

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One of the most common types of bank accounts in India is the savings account. This type of account is designed for individuals who want to save money and earn interest on their savings. Savings accounts typically offer a low rate of interest, but they also come with a range of benefits such as free ATM withdrawals, online banking, and mobile banking.

Another popular type of bank account in India is the current account. This type of account is designed for businesses and individuals who need to make frequent transactions. Current accounts typically offer a higher rate of interest than savings accounts, but they also come with higher fees and charges.

In addition to savings and current accounts, there are several other types of bank accounts available in India. For example, there are fixed deposit accounts, which offer a higher rate of interest than savings accounts but require customers to lock their money away for a fixed period of time. There are also recurring deposit accounts, which allow customers to save a fixed amount of money each month and earn interest on their savings.

Opening a bank account in India is a relatively straightforward process. Most banks require customers to provide proof of identity and proof of address, such as a passport or a utility bill. Some banks also require customers to provide proof of income, such as a salary slip or a tax return.

Once a customer has opened a bank account in India, they can enjoy a range of financial services. For example, they can use their account to make deposits and withdrawals, pay bills, transfer money to other accounts, and apply for loans and credit cards. They can also use their account to access online banking services, which allow them to manage their finances from the comfort of their own home.

In conclusion, bank accounts are an essential part of modern-day life in India. They provide a safe and secure place to store money, and they also offer a range of financial services that can help people manage their finances more effectively. Whether you’re looking to save money, make frequent transactions, or earn interest on your savings, there is a bank account in India that is right for you.

How do I choose the right type of bank account?

Choosing the right type of bank account in India can be a daunting task, but it’s important to choose the one that best suits your needs. Here are some factors to consider when choosing a bank account:

  1. Your financial goals: Consider your financial goals and choose an account that aligns with them. For example, if you’re looking to save money, a savings account would be a good choice. If you’re looking to make frequent transactions, a current account would be more suitable.
  2. Fees and charges: Different types of bank accounts come with different fees and charges. Make sure you understand the fees and charges associated with the account you’re considering, such as minimum balance requirements, ATM fees, and transaction fees.
  3. Interest rates: If you’re looking to earn interest on your savings, consider an account that offers a high rate of interest. Savings accounts typically offer a lower rate of interest than fixed deposit accounts, but they also come with more flexibility.
  4. Convenience: Consider the convenience of the account you’re considering. Does it offer online banking and mobile banking services? Is it easy to access your money when you need it?
  5. Customer service: Finally, consider the quality of customer service offered by the bank. Look for a bank that has a good reputation for customer service and is responsive to customer needs.

Once you’ve considered these factors, you should be able to choose the right type of bank account for your needs. If you’re still unsure, you can always speak to a bank representative who can help you make an informed decision.

How Can I Open a Bank Account Online in India?

You can follow these steps:

  1. Choose a bank: First, you need to choose a bank that offers online account opening services. Some of the popular banks in India that offer this service include Bank of India, ICICI Bank, and State Bank of India
  2. Visit the bank's website: Once you have chosen a bank, you need to visit its website and look for the option to open a new account. This option is usually located on the bank's homepage or under the "Accounts" section
  3. Fill out the application form: After you have found the option to open a new account, you will need to fill out an application form. This form will ask for your personal details, such as your name, address, and contact information. You may also need to provide proof of identity and proof of address
  4. Submit the application form: Once you have filled out the application form, you can submit it online. Some banks may require you to visit a branch to complete the account opening process, while others may allow you to complete the process entirely online
  5. Wait for approval: After you have submitted your application form, you will need to wait for the bank to approve your account. This process can take anywhere from a few hours to a few days, depending on the bank.

Once your account has been approved, you will be able to access a range of financial services, such as online banking, mobile banking, and more.

What is the minimum balance required for a bank account?

The minimum balance required for a bank account in India varies depending on the bank and the type of account. Some banks require customers to maintain a minimum balance of Rs. 1,000 or Rs. 2,000 for savings accounts, while others require a minimum balance of Rs. 5,000 or Rs. 10,000. However, the Reserve Bank of India (RBI) has recently issued a notification stating that banks cannot impose a penalty for not maintaining minimum balance on accounts that are inoperative - those that have not had any customer-induced transactions for over two years.

How long does it take to open an online bank account?

The time it takes to open an online bank account varies depending on the bank and the type of account you want to open. However, most banks have similar procedures to open a savings account online, which usually takes around 10-15 minutes

Which documents do I need for online account opening?

Online account opening process is completely Paperless which means you don't need to submit any physical documents to your service provider. It's completely online & digital.

Many banks in India offer the option of opening an online bank account through video KYC. The process of opening an account through video KYC is similar to opening an account through Aadhaar OTP based E-KYC.
Here are the general steps to open an account through video KYC:

  1. Fill up a digital account opening form online.
  2. Provide consent to the bank to fetch your Aadhaar details and enter your PAN number and upload your photograph.
  3. Provide additional mandatory details such as occupation, nomination, etc.
  4. Click on a link and proceed for Video KYC.
  5. Allow camera, microphone, and location access.

Advantages of Video KYC (vKYC) in Bank Account Opening Process

Video KYC (Know Your Customer) is a process that allows banks to remotely complete the KYC process through a live audio-video interface. Video KYC has revolutionized the account opening process in India by making it faster, more convenient, and cost-effective.

With video KYC, customers can complete the verification process remotely, without having to visit a bank branch in person. This means that customers can open a bank account from the comfort of their own home, without having to take time off work or travel to a bank branch.

Video KYC is also cost-effective, as it only requires customers to have a smartphone and a high-speed internet connection. This makes it a more affordable option for both banks and customers, as it eliminates the need for customers to travel to a bank branch.

Finally, video KYC is faster and more convenient than traditional account opening processes. With video KYC, customers can complete the verification process in as little as one hour to a maximum of three to four days, depending on the bank 1. This means that customers can access banking services faster than ever before.

In conclusion, video KYC has revolutionized the account opening process in India by making it faster, more convenient, and cost-effective.

What are the benefits of opening an account through Video-KYC?

The benefits of opening an account through video KYC include:

  1. Time-saving: Video verification enables you to open a savings account much faster as compared to the traditional customer verification process.
  2. Provide consent to the bank to fetch your Aadhaar details and enter your PAN number and upload your photograph.
  3. Cost-effective: Video KYC is cost-effective for both banks and customers
  4. Provide consent to the bank to fetch your Aadhaar details and enter your PAN number and upload your photograph.
  5. Convenience: Anyone with basic smartphone operating knowledge can open a savings account through video KYC
  6. Remote account opening: You can open an account online from any location in India, without having to visit a branch

What is a Zero Balance Savings Account

A zero balance savings account is a type of bank account that does not require the account holder to maintain a minimum balance. This type of account is ideal for individuals who do not have a regular income or who cannot afford to maintain a minimum balance in their account. In India, several banks offer zero balance savings accounts, including IndusInd Bank

Which Banks in India Offer Zero Balance Account Opening?

Several banks in India offer zero balance savings accounts. Here are some of the popular ones:

  1. RBL Bank Basic Savings Account: Offers an interest rate of 4.25% on balances up to Rs. 1 lakh and up to 6.75% on balances above Rs. 1 lakh.
  2. IDFC First Bank Pratham Savings Account: Offers an interest rate of up to 7% on balances above Rs. 5 lakh.
  3. IndusInd Bank Indus Online Savings Account: Offers an interest rate of 3.5% on balances up to Rs. 1 lakh and up to 6% on balances above Rs. 1 lakh.
  4. YES Bank Smart Salary Advantage: Offers an interest rate of 3.5% on balances up to Rs. 1 lakh and up to 5% on balances above Rs. 1 lakh.
  5. Utkarsh Basic Savings Bank Deposit Account (BSBDA): Offers an interest rate of 4% on balances up to Rs. 50 lakh.
  6. Remote account opening: You can open an account online from any location in India, without having to visit a branch