{"id":9996,"date":"2023-10-18T17:48:13","date_gmt":"2023-10-18T12:18:13","guid":{"rendered":"https:\/\/www.tickertape.in\/glossary\/?p=9996"},"modified":"2023-10-18T17:48:15","modified_gmt":"2023-10-18T12:18:15","slug":"savings-account","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/glossary\/savings-account\/","title":{"rendered":"Savings Account 101: Definition, Types, How to Open a Savings Account and More"},"content":{"rendered":"\n<p>There are various types of <a href=\"https:\/\/www.tickertape.in\/glossary\/investment-meaning-types-how-to-invest-and-savings-vs-investments\/\">investment<\/a> avenues in India, each with its set of features and benefits. Among various <a href=\"https:\/\/www.tickertape.in\/glossary\/investment-meaning-types-how-to-invest-and-savings-vs-investments\/\">investment<\/a> vehicles one such avenue is savings account. With a savings account, you can invest your surplus cash and also earn annual interest on it, that too tax free.<\/p>\n\n\n\n<p>But what exactly is a savings account? In this blog, we will delve deeper into understanding the concept of savings account, its types, advantages and disadvantages of having a savings account and much more.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_22 counter-hierarchy counter-numeric\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">You will Learn About: <\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#What-is-a-savings-bank-account\" title=\"What is a savings bank account?\">What is a savings bank account?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#Return-on-equity-Highlights\" title=\"Return on equity: Highlights\">Return on equity: Highlights<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#Types-of-savings-accounts\" title=\"Types of savings accounts\">Types of savings accounts<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#How-do-savings-accounts-work\" title=\"How do savings accounts work?\">How do savings accounts work?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#Advantages-of-savings-account\" title=\"Advantages of savings account\">Advantages of savings account<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#Disadvantages-of-savings-account\" title=\"Disadvantages of savings account\">Disadvantages of savings account<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#What-is-the-interest-on-a-savings-account\" title=\"What is the interest on a savings account?\">What is the interest on a savings account?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#How-to-choose-the-best-savings-bank-account\" title=\"How to choose the best savings bank account?\">How to choose the best savings bank account?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#How-to-maximise-earnings-from-a-savings-account\" title=\"How to maximise earnings from a savings account?\">How to maximise earnings from a savings account?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#Is-the-interest-from-the-savings-account-taxed\" title=\"Is the interest from the savings account taxed?\">Is the interest from the savings account taxed?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#How-to-open-a-savings-account-online\" title=\"How to open a savings account online?\">How to open a savings account online?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#Documents-required-to-open-a-savings-account\" title=\"Documents required to open a savings account\">Documents required to open a savings account<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#How-much-balance-should-you-maintain-in-your-savings-account\" title=\"How much balance should you maintain in your savings account?\">How much balance should you maintain in your savings account?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#What-is-the-frequency-of-interest-credited-to-the-savings-account\" title=\"What is the frequency of interest credited to the savings account?\">What is the frequency of interest credited to the savings account?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#How-is-the-average-monthly-balance-calculated-for-a-savings-account\" title=\"How is the average monthly balance calculated for a savings account?\">How is the average monthly balance calculated for a savings account?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#Does-non-maintenance-of-the-average-monthly-balance-of-a-savings-account-attract-charges\" title=\"Does non-maintenance of the average monthly balance of a savings account attract charges?\">Does non-maintenance of the average monthly balance of a savings account attract charges?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.tickertape.in\/glossary\/savings-account\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-a-savings-bank-account\"><\/span><strong>What is a savings bank account?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/images.pexels.com\/photos\/1602726\/pexels-photo-1602726.jpeg?auto=compress&amp;cs=tinysrgb&amp;w=1260&amp;h=750&amp;dpr=2\" alt=\"\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/www.pexels.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Pexels<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>A savings account is a type of liquid deposit account offered by banks and post offices in India. You can invest your idle funds into the account and get the benefit of liquidity and returns. The benefit of having a savings account is that you can make withdrawals and deposits at your discretion. Moreover, you can also earn interest on the balance that you maintain in your account.\u00a0<\/p>\n\n\n\n<div class=\"wp-block-uagb-advanced-heading uagb-block-37fca231\"><h2 class=\"uagb-heading-text\"><span class=\"ez-toc-section\" id=\"Return-on-equity-Highlights\"><\/span>Return on equity: Highlights<span class=\"ez-toc-section-end\"><\/span><\/h2><\/div>\n\n\n\n<ul>\n<li>Savings accounts are liquid investment avenues where you can invest your idle funds<\/li>\n\n\n\n<li>You can withdraw and deposit at your discretion and earn returns on the balance<\/li>\n\n\n\n<li>You earn a tax deduction on the interest earned from the savings account<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Types-of-savings-accounts\"><\/span><strong>Types of savings accounts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are different types of savings accounts in India. Some of the most commonly available ones include the following \u2013<\/p>\n\n\n\n<ul>\n<li><strong>Regular <\/strong><strong>savings account<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Regular savings accounts are basic accounts with a specified interest rate. These accounts require a minimum balance at all times. If the balance is not maintained, a small fine will be levied. The minimum balance for each bank varies, therefore check the minimum balance limit with the bank before opening a savings account.<\/p>\n\n\n\n<ul>\n<li><strong>Senior citizen <\/strong><strong>savings account<\/strong><\/li>\n<\/ul>\n\n\n\n<p>These accounts are specifically available for senior citizens, i.e., individuals aged 60 years and above. These accounts pay a higher interest rate, and the minimum balance criterion is also relaxed.<\/p>\n\n\n\n<ul>\n<li><strong>Salary <\/strong><strong>savings account<\/strong><\/li>\n<\/ul>\n\n\n\n<p>A salary savings account is offered to salaried individuals. Many salary accounts are zero-balance accounts that do not require any minimum balance. However, if no salary is credited for three or more months, the account gets converted to a regular account with a minimum balance requirement.&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Women <\/strong><strong>savings account<\/strong><\/li>\n<\/ul>\n\n\n\n<p>As the name suggests, these accounts are offered specifically to women. Some perks include higher interest rates, lower minimum balance requirements, discounted charges, etc.&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Children&#8217;s <\/strong><strong>savings account<\/strong><\/li>\n<\/ul>\n\n\n\n<p>These accounts are opened in the name of minors, i.e., children aged below 18 years. However, the account is supervised and managed by an adult.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-do-savings-accounts-work\"><\/span><strong>How do savings accounts work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/images.pexels.com\/photos\/5849585\/pexels-photo-5849585.jpeg?auto=compress&amp;cs=tinysrgb&amp;w=1260&amp;h=750&amp;dpr=2\" alt=\"\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/www.pexels.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Pexels<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>You can open a savings bank account individually or jointly. A deposit is required to start the account, which varies from bank to bank. Once the account is opened, you must maintain the minimum balance (if required). You can deposit funds into the account and make withdrawals freely. You also earn interest on the balance that you maintain during each month.\u00a0<\/p>\n\n\n\n<p>Savings accounts also offer you the facility of a cheque, passbook, debit card, lockers, etc. You can use them to manage your account.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Advantages-of-savings-account\"><\/span><strong>Advantages of savings account<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The advantages of a savings account are as follows \u2013<\/p>\n\n\n\n<ul>\n<li>Highly liquid as you can withdraw the money any time<\/li>\n\n\n\n<li>Opportunity to earn interest on idle funds<\/li>\n\n\n\n<li>Easy opening and maintenance<\/li>\n\n\n\n<li>Facilitates payments and fund transfers<\/li>\n\n\n\n<li>Beneficial for online transactions<\/li>\n\n\n\n<li>Tax benefit (The interest income earned is allowed tax deductions)&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Disadvantages-of-savings-account\"><\/span><strong>Disadvantages of savings account<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some of the demerits of a savings account are as follows \u2013<\/p>\n\n\n\n<ul>\n<li>Penalty on non-maintenance of balance<\/li>\n\n\n\n<li>Low-interest rates compared to other avenues<\/li>\n\n\n\n<li>Fees on debit cards and other services<\/li>\n\n\n\n<li>Requirement of a minimum balance<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-is-the-interest-on-a-savings-account\"><\/span><strong>What is the interest on a savings account?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The interest on a savings account depends on the bank or post office. It usually starts from 3% and can go up to 7% per annum.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-to-choose-the-best-savings-bank-account\"><\/span><strong>How to choose the best savings bank account?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.wikihow.com\/images\/thumb\/e\/e8\/Choose-a-Bank-That%27s-Right-for-You-Step-2-Version-2.jpg\/v4-460px-Choose-a-Bank-That%27s-Right-for-You-Step-2-Version-2.jpg.webp\" alt=\"\" width=\"460\" height=\"345\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/www.wikihow.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">wikiHow<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>To choose the best savings account, consider the following parameters \u2013<\/p>\n\n\n\n<ul>\n<li>The type of account that is suitable for you. For instance, if you are female, a women&#8217;s savings account would be better.<\/li>\n\n\n\n<li>The interest rate \u2013 the higher, the better. It is not always ideal to go for the highest interest rate as the banks providing such high rates are usually second-tier banks trying to attract deposits. Consequently, they have their own risks involved. Example: HDFC Bank will provide only a 3% rate while Yes Bank may provide a higher rate, maybe close to 5-6%, and we know how massively these banks differ.<\/li>\n\n\n\n<li>The charges \u2013 the lower, the better<\/li>\n\n\n\n<li>The balance requirement \u2013 the lower, the better<\/li>\n\n\n\n<li>Added facilities like debit cards, lockers, chequebooks, etc. \u2013 <em>the more, the merrier<\/em><\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-to-maximise-earnings-from-a-savings-account\"><\/span><strong>How to maximise earnings from a savings account?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/images.pexels.com\/photos\/6289026\/pexels-photo-6289026.jpeg?auto=compress&amp;cs=tinysrgb&amp;w=1260&amp;h=750&amp;dpr=2\" alt=\"\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/www.pexels.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Pexels<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>Some tips to maximise savings from a savings account are as follows \u2013<\/p>\n\n\n\n<ul>\n<li>Opt for an account that pays the highest interest rate<\/li>\n\n\n\n<li>Maintain a steady balance in your account to avoid non-maintenance penalties&nbsp;<\/li>\n\n\n\n<li>Use the rewards offered by your debit card<\/li>\n\n\n\n<li>Have multiple savings account<\/li>\n\n\n\n<li>Cut down on unnecessary expenses to reduce withdrawals&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Is-the-interest-from-the-savings-account-taxed\"><\/span><strong>Is the interest from the savings account taxed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/images.pexels.com\/photos\/6863259\/pexels-photo-6863259.jpeg?auto=compress&amp;cs=tinysrgb&amp;w=1260&amp;h=750&amp;dpr=2\" alt=\"\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/www.pexels.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Pexels<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>The interest income is tax-free up to Rs. 10,000 under Section 80TTA of the Income Tax Act, 1961. For senior citizens, the tax-free limit is Rs. 50,000 under Section 80TTB. Excess interest income, however, would be taxed in your hands at your slab rates.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-to-open-a-savings-account-online\"><\/span><strong>How to open a savings account<\/strong><strong> online?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can visit the bank&#8217;s official website to open a savings account online.<\/p>\n\n\n\n<p>You would have to fill up an online account opening form, upload your documents and make the initial deposit. Financial institutions have also launched mobile applications that allow you to open a savings account online through your smartphone.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Documents-required-to-open-a-savings-account\"><\/span><strong>Documents required to <\/strong><strong>open a savings account<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following documents would be required to open a savings account \u2013<\/p>\n\n\n\n<ul>\n<li>Identity proof<\/li>\n\n\n\n<li>Age proof<\/li>\n\n\n\n<li>Address proof<\/li>\n\n\n\n<li>Aadhaar card<\/li>\n\n\n\n<li>Recent photographs<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-much-balance-should-you-maintain-in-your-savings-account\"><\/span><strong>How much balance should you maintain in your savings account?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/images.unsplash.com\/photo-1553729459-efe14ef6055d?ixlib=rb-4.0.3&amp;ixid=MnwxMjA3fDB8MHxwaG90by1wYWdlfHx8fGVufDB8fHx8&amp;auto=format&amp;fit=crop&amp;w=1740&amp;q=80\" alt=\"\"\/><figcaption class=\"wp-element-caption\">Image source: <a href=\"https:\/\/unsplash.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Unsplash<\/a><\/figcaption><\/figure><\/div>\n\n\n<p>The savings account balance requirement depends on the financial institution with which you have opened the account and the type of account. For instance, a salary-saving bank account does not require any minimum balance. However, for other accounts, the balance might start from Rs. 500 or Rs. 1000 and go up.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-is-the-frequency-of-interest-credited-to-the-savings-account\"><\/span><strong>What is the frequency of interest credited to the savings account?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Usually, the savings account interest rate is credited at the end of every quarter.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-is-the-average-monthly-balance-calculated-for-a-savings-account\"><\/span><strong>How is the average monthly balance calculated for a savings account?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Average Monthly Balance (AMB) is calculated by adding together the closing balance of the account every day. This aggregate amount is then divided by the number of days in the month.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong>AMB = Sum of the closing balance of each day\/number of days in a month<\/strong><\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Does-non-maintenance-of-the-average-monthly-balance-of-a-savings-account-attract-charges\"><\/span><strong>Does non-maintenance of the average monthly balance of a savings account attract charges?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Yes, if you don\u2019t maintain the average monthly balance, you would attract a charge which would be debited from your savings account balance.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Saving accounts are liquid bank accounts that allow you to invest funds and earn interest. These accounts are easy to open and offer a decent interest income. You can open a savings account online or visit a bank to do the same. Remember that your interest income may attract taxes. Consult with your advisor to choose the most suitable savings account.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-7c96d0dd uagb-faq-icon-row uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height\" data-faqtoggle=\"true\" role=\"tablist\">\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-ce98a1e0\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Does opening a savings account incur any charge?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">No, opening a savings account is free of cost. You just have to make an initial deposit.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-d9f69ee2\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Is TDS deducted from savings account interest?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Yes. Banks deduct a TDS from the savings account interest income.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-3abcdc4d\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is a joint account?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">An account jointly held by two or more individuals is called a joint savings account. Having a joint account provides you with multiple benefits. For instance, in case of an emergency when you are not around, the other account holder can operate the account and get the work done without any hassle.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-551c74dc\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>How do banks calculate interest on savings accounts?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">According to the guidelines shared by RBI, the interest on a savings account is calculated on its daily outstanding balance.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-672dbb8d\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Is a salary account a savings account?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">A salary account is a type of savings account wherein employers deposit the monthly salary of their employees. A savings account can be opened by any individual, whereas salary accounts are opened by organisations.\u00a0<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-53bef509\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What is the minimum balance in a savings account?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Different banks may have different minimum balance requirements. However, the range is typically from 2.5% &#8211; 5%.<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>With a savings account, you can invest your surplus cash and also earn annual interest on it, that too tax free. Learn more about savings account, its types and how to open a savings account in India.<\/p>\n","protected":false},"author":90,"featured_media":9997,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[1],"tags":[1929],"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3.png","uagb_featured_image_src":{"full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3.png",2086,1086,false],"thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-150x150.png",150,150,true],"medium":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-300x156.png",300,156,true],"medium_large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3.png",768,400,false],"large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-1024x533.png",770,401,true],"1536x1536":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-1536x800.png",1536,800,true],"2048x2048":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-2048x1066.png",2048,1066,true],"authorship-box-avatar":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-150x150.png",150,150,true],"authorship-box-related":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-70x70.png",70,70,true],"post-thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-270x180.png",270,180,true],"contentberg-main":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-770x515.png",770,515,true],"contentberg-main-full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-1170x508.png",1170,508,true],"contentberg-slider-stylish":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-900x515.png",900,515,true],"contentberg-slider-carousel":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-370x370.png",370,370,true],"contentberg-slider-grid-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-554x466.png",554,466,true],"contentberg-slider-grid-b-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-306x466.png",306,466,true],"contentberg-slider-bold-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-150x150.png",150,150,true],"contentberg-grid":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-370x245.png",370,245,true],"contentberg-list":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-260x200.png",260,200,true],"contentberg-list-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-370x305.png",370,305,true],"contentberg-thumb":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-87x67.png",87,67,true],"contentberg-thumb-alt":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/08-1-3-150x150.png",150,150,true]},"uagb_author_info":{"display_name":"Anjali Chourasiya","author_link":"%3Fmolongui_byline=true%26mca="},"uagb_comment_info":1,"uagb_excerpt":"With a savings account, you can invest your surplus cash and also earn annual interest on it, that too tax free. Learn more about savings account, its types and how to open a savings account in India.","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/9996"}],"collection":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/users\/90"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/comments?post=9996"}],"version-history":[{"count":2,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/9996\/revisions"}],"predecessor-version":[{"id":10682,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/9996\/revisions\/10682"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media\/9997"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media?parent=9996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/categories?post=9996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/tags?post=9996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}