Bank Accounts Essay Example for Free

verify directs EssaySaving a/c savingsare meant to promote the habit of saving among the citizens bit allowing them to use their funds when required. The main advantage of Savings Bank Account is its high liquidity and safety. On top of that Savings Bank Account earn moderate interest too. The rate of interest is firm and periodically reviewed by the Government of India. Presently, the rate of interest is 3. 5% compounded half yearly. Savings Bank Account can be opened in the name of an individual or in sum names of the depositors. Savings Bank Accounts can also be opened and operated by the minors provided they fetch completed ten years of age. Accounts by Hindu Undivided Families (HUF) not engaged in all trading or business activity, can be opened in the name of the Karta of the HUF. The minimum dimension wheel to be hold in an ordinary savings bank account varies from bank to bank. It is less in case of public sector banks and comparatively higher in case of private banks. In some of the public sector banks, minimum balance to be maintained is Rs. 100.In accounts where cheque books are issued, a minimum balance of Rs. 500/- has to be maintained. For Pension Savings Accounts, minimum balance to be maintained is Rs. 5/- without cheque facility and Rs. 250/- with cheque facility. Things to Consider While opening move a Savings Account It is advisable to seek the following information from bank before opening the account Minimum balance requirements.Penal provisions in case the balance falls below the minimum stipulated amount penalisation in case of return of cheques issued or instruments sent on collection. Collection facilities etc. offered and charges applicable. Details of charges, if any for issue of cheque books and limits fixed on number of withdrawals, cash drawings, etc. Document Required For Opening a Savings Account Two passport size photographs.