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Watch your savings grow

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A savings account typically refers to an account in which

one places money to earn a small amount of interest.

(SB account) is meant to promote the habit of saving among

the people.

In most cases, one can withdraw money from asavings account at any time, at least at any time the bank isopen, or one has access to the banks ATM.

Not only banks, but also credit unions, and money marketfunds companies can offer a savings account to customers.

Apart from providing interest, banks and credit unions keepyour money in a locked and fireproof safe.

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The minimum amount to open an account in a nationalized bank is Rs 100. If

cheque books are also issued, the minimum balance is Rs500.

However in some private or foreign bank the minimum balance is Rs 500 ormore and can be up Rs. 10,000. One cheque book is issued to a customer ata time.

A Savings account can be opened either individually or jointly with anotherindividual.

In a joint account only the sign of one account holder is needed to write acheque. But at the time of closing an account, the sign of the both theaccount holders are needed.

The interest rate varies between 2.5% and 4%.

In Savings Bank account, bank follows the simple interest method. The rate

of interest may change from time to time according to the rules of ReserveBank of India.

One can withdraw his/her money by submitting a cheque in the bank anddetails of the account, i.e the Money deposited, withdrawn along with thedates and the balance, is recorded in a passbook.

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It is advisable to seek the following information from bankbefore opening the account:

Minimum balance requirements.

Penal provisions in case the balance falls below the minimumstipulated amount.

Penalty in case of return of cheques issued or instrumentssent on collection.

Collection facilities etc. offered and charges applicable.

Details of charges, if any for issue of cheque books and limitsfixed on number of withdrawals, cash drawings, etc.

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Any person competent to contract and satisfactorily introduced to

the Bank may open an account in his/her own name. He/She may

not open more than one such account. Accounts may be opened in

the names of two or more persons .

A savings bank account may be opened in the single name of a

minor and may be operated upon by minor, if he/she has completed

the age of-10-years and is able to read and write. Maximum balance

to the credit of such account should not exceed at any time

Rs.1,00,000/-.For accounts of minors above-14-years,there is no

limit to maximum balance.

A savings bank account may be opened in the name of minor jointly

with his/her natural guardian i.e. father or guardian i.e. mother or

both.

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An account can be opened in the name of club, society, provident

fund and trust, subject to satisfaction of conditions stipulated by

Reserve Bank of India/the bank from, time to time.

Accounts can be opened in the names of specified

institutions/agencies, if they are registered under the Societies

Registration Act or Companies exempted from using the words 'Ltd.

'or 'Pvt Ltd. 'as part of their names as per the Companies Act.1956and those working for socially desirable purposes and serving

weaker sections of the society and those exempted from paying

Income tax under Income Tax Act 1961.

Further, Savings Bank account can also be opened in the name of

Government Departments / bodies / agencies in respect of grants /

subsidies released for implementation of various programmes /

schemes sponsored by Central / State Government.

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Application to open an account must be made in Bank's prescribed account

opening form. It should be made, in person, in the presence of Banks

authorized officer and the applicant must fill in all the columns of the

application form. Each applicant will be required to sign a declaration to the

effect that he has read and accepted the Savings Bank Rules.

Illiterate depositor, unable to write, must attend in person and affix his/herthumb impression on the account opening form in the presence of an approved

witness, who is known both to the bank and the applicant. Such illiterate

depositor should lodge his/her recent photograph with the bank, duly attested

by a person known to the bank.

At the discretion of the Bank, illiterate persons are allowed to open accountsjointly with persons who are literate or illiterate and closely related to them, to

be operated upon jointly.

No cheque book facility will be extended in the single or joint savings bank

account of the illiterate depositors.

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Every account holder should submit copies of his/her recent passport size

photograph at the time of opening an account.

Identifications :Any of the following documents bearing photograph of the

holder is also accepted for the purpose of identification

a) Valid Passportb) PAN Cardc) Driving Licenced) Voters ID Carde) Defence ID Cardf) Identity Card of employees of central/State Govt. & Public Sector Undertakings

g) Senior Citizens Card

Costs InvolvedSometimes, but not always, banks charge fees for having a savings account. Forthis reason, you should always shop around and compare what different banksare offering. Things you should look at include:

Fees and services charges on the account

Minimum balance requirements (Some banks charge a fee only if you don't keepa certain amount of money in your account at all times.)

Interest rate paid on your balance

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Nomination: You can file a request for nomination for both a single account

or a joint account in Form No DA-1. You can nominate any person to receive theamount lying in the account in case of your death or the death of any of thejoint accountholders.

Nomination facility is available in case of individuals only, and to other entitieslike partnership firms, limited companies and trusts, etc.

Nomination is also available to accounts operated by proprietors in respect oftheir business concerns, including current accounts.

In case of minor accountholders, a nomination can be made by a person who islawfully entitled to act on behalf of the minor.

However, if your nominee is a minor, you will have to appoint a person toreceive the money during the time the nominee stays a minor.

Steps:

Fill the nomination form Give all the nominee detail and required documents In case of any happening certain or uncertain,natural or artificial the bank will

inform the nominee A nominee can be anyone of our choice.

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Introduction

While opening a saving account there has to be one introducer to it,it means

that there should be one account holder in the bank whom we know andobtain sign on it.

The bank clerk verify the introducer and his signature.

Some bank do not ask for introducer if all the required are propely

submitted.

The account is to be introduced by an existing account holder havingsatisfactorily conducted account with the Bank. Whenever a deposit accountis opened and introduction is taken from an existing account holder; the

following conditions must be fully satisfied:

(a) The account of the introducer should be minimum six months old and

(b) The account of the introducer should have been satisfactorily and activelyconducted.

(c) The account of the introducer should be KYC compliant. It means theproposed introducer has complied with the KYC requirement in respect of theaccount maintained with the Bank.

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Pass book

Bank issues passbooks/statement of accounts to account holders. For

withdrawing money from an account through a withdrawal slip, production

of pass book/statement of account/identity card issued by the branch is

necessary. The Bank will not be responsible for any loss caused to thedepositor, if an unauthorised person obtains the possession of the pass

book/identity card/statement of account and fraudulently withdraws from

the account.

Any change of address should immediately be intimated to the Bank and

the pass book sent for necessary alterations with new address proof

document required under KYC norms.

Pass book/identity card/statement of account will be issued free of charge

at the time of opening an account and in continuation of the original. But if

the pass book/identity card/statement of account is lost or spoiled, the

depositor will have to pay prescribed charges for issue of duplicate pass

book/identity card/statement of account.

In case of accounts in which withdrawals are made by cheques, the pass

book should be sent periodically to the bank for updating after the

withdrawals or as may be convenient.

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When you open a savings account you'll get a small bookcalled a register (like a checkbook register) where you writeyour beginning balance (the amount you originally deposit)and all of your future deposits and withdrawals. This toolhelps you keep track of how much money you have.

Each month, your bank (or credit union) will send you astatement of your account either in the mail or by e-mail ifyou prefer. The statement will list all of your transactions aswell as any fees charged to your account and interest yourmoney has earned.

The only other thing is to remember to make deposits intoyour account and sit back and watch your money grow! Formore personal finance and savings information.

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Step 1: Stop Automatic Deposits orWithdrawals

Step 2: Determine if You Need to Keep aMinimum Balance

Step 3: Ensure Your Account Has a zeroor Positive Balance

Step 4: Request Account Closure

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ANKUR BAHETI.(03)HIMANSHU MEHTA.(08)PRATIK JAIN..(19)SACHIN MUNDRA(34)BHAVIK PAREKH..(38)NAITIK SHAH(50)