A savings account is one of the most basic types of bank accounts, allowing users to deposit money and earn interest on the amount deposited while also having the option to withdraw it at any time. In addition, savings accounts provide users with various benefits and features, making them one of the best investment options.
This blog covers every aspect of a savings account. These features may differ depending on the type of savings account and the bank that offers them.
Saving Account Features
The savings account has the following features-
Banks offer depositors interest rates in return for keeping their funds with them. The interest rate is the amount of money paid by the bank for the amount of money deposited by the user. The interest rate offered by the bank is determined by the amount deposited in its account. In addition, RBI’s ongoing banking policies have an impact on the interest rates offered by banks. It should also be noted that interest rates differ from bank to bank.
Paytm Payments Bank, on the other hand, offers consumers a 2.5 percent interest rate on their savings account balance. In addition, with Paytm Payment BankInterest is paid monthly, providing users with the benefit of keeping deposits in their accounts from the previous month at the beginning of the following month.
Minimum balance requirement
Banks set minimum balance requirements, which must be managed and maintained by savings account holders. Despite the fact that some types of savings accounts, such as payroll savings accounts or zero savings accounts, do not require a minimum balance to be maintained, others do. If the account holder fails to do so, he or she must pay a penalty. However, only a few banks, such as Paytm Payments Bank, do not require savings account holders to keep a minimum balance in their account.
Savings accounts allow users to withdraw any amount of money at any time and from any location. The bank determines the number of withdrawals and the number of times that withdrawals can be made.
You can easily withdraw funds from any ATM using an ATM card or debit card. It is important to note, however, that a small fee is deducted if you use another bank’s ATM to withdraw money after a certain number of transactions.
If you have a savings account, you will most likely be given a debit card as part of your welcome package. With a debit card, you can easily withdraw money from ATMs and/or make payments on online and offline platforms. To authenticate a transaction, all you need to do is enter your credentials. However, when you open a savings account at Paytm Payment Bank, you will be given a digital debit card as well as the option to get a physical debit card. The Paytm Payment Bank savings account debit card functions in the same way as any other bank debit card.
Savings book and check book facilities
When you open a savings account, most banks include a passbook and checkbook as part of the welcome package. Passbooks keep track of all your financial transactions and activities, while checkbooks are designed for quick withdrawals or handovers of funds. When you open a Paytm Payments Bank savings account, you will receive a digital passbook that allows you to track your transactions with one tap.
No age limit
Savings accounts do not have an account holder age limit. Each account type has its own set of eligibility requirements and benefits, making it suitable for people of all ages. Anyone of any age can open a savings account by meeting the required eligibility criteria, whether it’s a child savings account (under the age of ten), a senior citizen savings account, or a payroll savings account.
Savings accounts allow users to make transactions online. To perform various banking functions such as sending money, receiving money, paying bills, investing in the stock market, choosing insurance or other investment options, ordering checkbooks, and so on, one can use the bank’s mobile banking application or net banking. Instead of physically visiting bank branches, all services are available online.
Savings accounts are sustainable, meaning they can be managed and maintained for as long as they want. There is no time limit on how long money can be kept in a savings account. However, keep in mind that if your account is inactive for two years or more, it will be classified as an inactive account by the bank. In this case, you will need to contact your bank again to activate the account.
You have the option to close your savings account at any time. All you need to do is connect to your bank. Remember that you cannot close your account online; You must physically visit your bank branch to do so. Furthermore, if your account is in a dormant state, you must activate it first before closing it. A savings account with Paytm Payment Bank, on the other hand, can be closed online by submitting a ticket request.
Why Open a Savings Account with Paytm?
Opening a savings account with Paytm gives you many advantages over other banks in the country. Listed below are some of the advantages of having a Paytm savings account:
- No requirement for minimum balance
- Account holders receive an annual interest rate of 2.5% on the money deposited
- All digital transactions are absolutely free
- A user can earn 5.5% interest rate on regular FDs, while senior citizens can earn 6% interest rate on FD
- Every savings account holder receives a free digital debit card.
- Upon request, physical debit cards can be obtained
Furthermore, Paytm Payment Bank provides the following services to its customers to provide a simple and convenient user experience:
- Easy to use app interface
- 24*7 help
- Quick and easy account opening process
- Access to digital passbook
- Detailed overview of transactions by different categories
Because of these advantages, more than 15 million savings account holders transact each month, enabling them to take advantage of many financial benefits every day.
Paytm services are not limited to banking; it also fulfills multidimensional needs such as electricity/mobile bill payments, e-commerce services, simple payments via e-wallet or UPI, etc.
Explore the Paytm app and witness your digital goodness for yourself!
Which bank is the best for opening a savings account?
This is determined by the features, interest rates, benefits and additional services desired from the bank. Compare several banks and choose the best one for your needs.
What is the tenor for a savings account?
A person can manage and maintain his savings account according to his wishes or until it is possible for someone to manage it. There is no tenure limit.
What are the variants of a savings account?
- Ordinary savings account
- Child savings account
- Zero savings account
- Salary savings account
- Senior citizen savings account
- Family savings account
What are the main features of a savings account?
- Internet banking and mobile banking services available
- There is a passbook and a checkbook
- Simple exit procedure
- Competitive interest rates (depending on the type of savings account and bank policy)
- Account must have a minimum balance to manage (varies according to savings account variant)
- ATM services are available, as well as the ability to make transactions both online and offline
- There is no age limit at which one can open a bank account
- There is no time limit on how long the account can be operated