One of the most popular methods of parking money is an interest-bearing deposit account, a savings account, that you can open in any financial institution. Though having a few limitations in withdrawal, it is highly flexible to act as an emergency fund for people. 

Moreover, most banks provide compound interest on the account balance in a savings account. However, the interest rate earned on the amount is generally low but enough for a short-term cash balance.

Read this blog below to learn more about its features and how to open a savings account.

The key features of opening a savings account in India are as follows:

• Interest Earnings: There are several factors affecting the interest rate. However, the interest rate varies from 3% to 7% from one financial institution to another.

• Debit Card/ATM Facility: If you hold a savings account, you receive a Debit Card linked to your savings account in the bank. You can use this ATM card to make transactions and withdraw funds from other banks' ATMs.

• Easy Transactions: If you require funds or cash, you can withdraw the same from your savings account anytime. However, for a hassle-free transaction, check with your bank for the limit on the amount to be withdrawn on a day and the number of transactions you can make.

• Highly Accessible: Apart from withdrawing funds through ATMs, you can make online payments using your savings account number or linking it to your payment apps. It allows easy accessibility.

• Mobile and Net Banking: As the Indian government has digitised most services in the banking system, you can now opt for mobile or net banking. This replaces the usage of cheques and passbooks. This system allows you to check your account balance, recent transactions and other tasks through your banking app online, specific to your bank.

If finding the right way of ‘how to open a savings account’, you can open a savings account in your preferred bank using both online and offline methods. Both of these processes are hassle-free and require minimal documentation.

There are two procedures to open a savings account through the online process:

1. Internet Banking

Follow the below steps to open a savings account through the Internet banking method:

Step 1: First, visit the banks' page/website online and sign up. Set your username and password.

Step 2: Go to the link that says ‘Open Savings Account’.

Step 3: Fill up the necessary form and enclose all the essential documents.

Step 4: Submit your KYC documents and verify yourself online. You can do it easily via a video call from a bank official.

Step 5: After verification of your KYC documents, your Debit Card will reach your given address within a few days.

Step 6: Once you receive your Customer ID and account number, you can start using your account. You can log in via net banking or internet banking to make transactions.

2. Phone Banking

Follow the below steps to find out how to open a savings account online through the phone banking method:

Step 1: Download the application of your preferred bank and signup. Set your username and password. 

Step 2: Then, choose the ‘Open Savings Account’ option from a list of services that the bank provides.

Step 3: Fill up the application form and enclose all the supporting documents for verification.

Step 4: After you submit your documents for KYC, an official will call you for verification. You can also complete verification via a video call from the bank official. However, you will have to give access to your location, camera and microphone on your smartphone for the process.

Step 5: After the verification process is complete, you will get your Customer ID and account number. Now, you can operate your savings account through your mobile.

You can open a savings account by visiting the nearest branch of your bank. Here are the detailed steps on how to start a savings account offline:

Step 1: Visit the nearest branch of your bank. Collect an application form to open a savings account.

Step 2: Duly fill up every detail mentioned in the form. Carry all the KYC documents, which you must enclose with the application form. Bring both the originals and copies of your necessary documents for verification. 

Step 3: After double-checking your application form, submit it along with copies of your documents.

Step 4: After a bank official verifies your application, he/she will process it for KYC verification.

Step 5: Post KYC verification, you will receive a Customer ID and an account number. Bank officials will send your ATM/Debit Card to your address within seven days. You can set the PIN of your ATM/Debit Card and start using your savings account. 

You can open a savings account offline for your child. Here is what you have to do:

Step 1: You must have a savings account, in your name, at the bank where you intend to open your child's savings account. If you do not have one, apply for it.

Step 2: Visit the nearest branch of your bank and collect an application form to open a savings account for a minor.

Step 3: Fill out a form duly, mentioning the minor as the first account holder and you as the joint holder. 

Step 4: Submit the necessary documents and photographs along with this application form. Some banks require the minor's photographs. However, you must submit the child's birth certificate as age proof.

Step 5: Ensure your child is 18 years of age. Apart from providing age proof, you also must provide documents to establish your relationship with the child. For that, submit your PAN card details.

Step 6: In this case, as a parent or guardian, you might have to fill in a separate form mentioning all details.

Step 7: Submit your child’s address proof and provide your signature wherever necessary.

Step 8: After you complete all these formalities, a bank official will undergo a verification process. After verifying all documents and information provided, they will provide an account number which is your child's savings account number.

Furthermore, the bank will issue an ATM/Debit card at your address, which your child can use to make transactions online and offline.

However, if finding ‘how to open a savings account online for minors’ you can do it by visiting the site of your preferred bank. You just need to click the open minor account option and follow the steps asked by the site. 

Here is the list of documents you must carry or keep handy:

Age and Identity Proof:

• PAN Card

• Voter ID Card

• Passport

• Driving Licence

Address Proof:

• Driving Licence

• Utility Bill

• Voter ID Card

Apart from these, ensure to carry two passport-sized photographs. Moreover, if you have a senior citizen card, carry a document that has proof of your age.

There are several banks and financial institutions providing savings accounts to individuals. However, each offers different interest rates. If you find it difficult to choose a bank that offers the best savings account scheme, consider some of the factors below:

• Minimum Balance Criteria: Before you open a savings account with that particular bank, check whether you can open an account maintaining a zero balance. If the bank doesn't have zero-balance criteria, check the minimum amount of money that needs to be maintained. 

• Interest Rate: One of the primary factors you must consider before opening a savings account is the interest rate that the bank is offering on your savings account balance. The interest rates are at the discretion of banks and financial institutions. Also, it varies depending on the balance amount you maintain and the duration of holding.

• Ease of Access: You must be able to access your savings account whenever and wherever necessary. Check if the bank has an ATM located nearby. Moreover, it must offer a robust digital banking platform and feature-filled mobile app that allows you to make transactions, shop online, make investments, pay bills, scan QR codes, etc.

• Service Quality: Service quality plays a key role in your banking relationship. It encompasses everything from ensuring regular transaction alerts on your account, accessibility across communication platforms, and quick turn-around time for resolving queries and complaints.

• Charges: Before choosing a savings account, ensure you know and understand all the terms and conditions associated with their services. In addition, learn about the list of charges associated with various functions to avoid complications in future. 

• Debit Card Benefits: All banks and financial institutions offer several value-added services for using the Debit Card. You will receive cashback on purchases, discounts, preferential pricing at partner merchants, dining, shopping, travelling, and entertainment benefits. 

• ATM and Branch Density: Choose a bank that has plenty of branches and ATM facilities across different locations. It is because if you need cash urgently, you will not have to travel far distances to withdraw. You can visit the nearest branch or ATM at any location and withdraw cash, or carry out bank-related work.

Hope the information above answers your question on how to open a savings account. However, you must read all the terms and conditions carefully before opening any bank account.