A savings account will provide you to keep your money safely along with that you can earn money as interest. A savings account bank account provides you with cheque book facility and allows users to make cash deposits and withdrawals money. It is one of the easiest ways to manage your money by depositing it in a bank account.
Features of Savings Accounts
Below are the features of a regular savings account:
Interest income: Savings accounts offers interest on the money held in the account. Whereas current accounts do not earn interest. The rate is the fixed interest rate of 4% p.a. on the daily basis held in savings accounts.
Flexibility: You can deposit money or take out money whenever you want to. This is unlike other kinds of accounts like a fixed deposit or recurring deposit account. You can withdraw the money in an emergency without any penalty charges.
Tax Benefit: As a tax benefit you get relief in tax for Interest income earned from a savings account of up to Rs. 40,000 a year is exempt from tax.
Documents Required to Open a Savings Bank Account
- Identity proof
- Address proof
- Latest passport-sized photographs
- Voter ID card
- PAN card