How to Open Savings Account?

How to Open Savings Account?

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A step-by-step guide on how to open a savings account

TLDR Points

  • A savings account is safe, secure, and helps increase your savings.
  • Any resident Indian can open a savings account in India.
  • You can open a savings account by visiting a bank or online.
  • You need your address proof, identity proof, and latest photograph to open a savings account.

Introduction

Holding a savings account is considered the first step towards financial planning. This article will take you through the benefits of a Savings Account, the eligibility criteria, and the process of how to open a savings bank account.

Who can open a savings account?

The Government of India understands the importance of enabling residents to save money. These simple criteria allow the following individuals to open a savings account in any Indian bank:

  • Resident Individuals (sole or joint account).
  • Hindu Undivided Families (HUF).
  • Foreign Nationals Residing in India (provided they have been living in India for at least 180 days, must have a valid passport, visa, Foreign Region Registration Office certificate, and a residential permit.
  • Minor up to 17 years (with parents or legal guardians as their joint account holders).

Every bank in India also has their respective eligibility criteria for opening a Savings Account. For example, if you wanted to open an account with digibank, the requirements are:

  • The individual must be at least 18 years old.
  • Should reside in India.
  • Have a mobile number registered in India.
  • Have an email address.
  • Have a compatible iOS or Android phone.

The last point isn’t a banking regulation, but since digbank by DBS is entirely online, your transactions are paperless. You will need a smartphone to download the app, register, and start accessing options.

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A step-by-step guide to open a savings account

If you are wondering how to open a savings account, the answer is- in one of two ways. You can open a savings account by visiting the bank or online through an app or the bank’s website.

Regardless of whether it is online or offline, there are specific steps you need to take before you open a savings account:

  1. Keep copies of your necessary identity and address proof documents ready for a KYC (Know Your Customer) verification. We have mentioned the detailed list of documents as you go along in this article.
  2. If you are under 18, you will need your parents’ or legal guardians’ signatures and personal information.

If you want to know how to open a savings account online, read on:

  1. Download your chosen bank’s app or visit their website.
  2. Select ‘Open Savings Account’ or a similar-sounding option.
  3. Fill in your personal information such as full name, address, mobile number.
  4. Type the OTP number you receive on your phone from the bank.
  5. Upload scanned copies or images of your KYC documents.
  6. Once you have uploaded all your documents, you will receive a verification code.
  7. After your KYC is approved, your bank account can get opened instantly.
  8. You can start using your account once the bank completes biometric and address verification.

Benefits of a savings account

A savings account is that friend who silently supports you, always accessible. Read on to understand how a Savings Account helps you in reassuring yet straightforward ways.

A safe place to keep your money

There is no safer place than a bank to keep your savings. Besides, your account also comes with a ₹1,00,000 insurance on the balance.

Generates interest

The money in your savings account will gather interest. Even though the interest rate may be lower than a fixed or recurring deposit account, it is a steady way of growing your money.

Pathway to more services

Having a savings account opens up a world of opportunities for you. You get access to a debit card, internet banking, and instant money transfer options like NEFT/ RTGS/ IMPS.

Documents required to open a savings account

The documents needed to open a savings account are those that all of us will have. The RBI requires every account holder to furnish these documents for KYC verification. You may also need to update these documents every two years or as and when your bank requests them from you.

Here is the list of documents you need to open a savings account:

  1. Identity Proof (any 1)
    • PAN card
    • Aadhaar card
    • Voter ID
    • Passport
    • Driving license
    • Employee ID
    • Any photo ID card issued by the Central/State government
    • NREGA job card
  2. Address Proof (any 1)
    • Aadhaar card
    • Voter ID
    • Utility bill (electricity, gas, water, telephone)
    • Passport
    • Driving license
    • Bank account statement or passbook of the bank
    • Ration card
    • A letter stamped/signed/recognised from a gazetted officer or public authority to verify the address details of the applicant
  3. Latest colour passport-size photograph
  4. Savings Account application form

That’s it. That’s all it takes to start saving!

Questions you need answers to about your savings account

Just as you ask your potential life-partner a million questions before you get hitched, it’s only fair that you ask these five questions before opening a savings account.

  1. What is the minimum required balance to maintain the account?
  2. Is there a regular fee to maintain the account?
  3. What is the rate of interest the savings will accrue?
  4. What is the number of withdrawals allowed each month?
  5. What are the charges (if any) for withdrawing money from a savings account from another bank’s ATM?

Your bank’s website will have all the answers.

Conclusion

A savings account helps you keep your money safe and earns you interest. It is easy to open one by visiting the bank or online. Opening a bank account online is faster and more convenient, especially if you have a full schedule. You need your KYC documents to open a savings account.

With the digibank by DBS app, you can open a new savings account in a few minutes! Download the app to get started.

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