What is meant by an SB account?

One of the most important and essential necessities in life is money. Banks and the bank accounts that we open play an important role in keeping our money safe and secure. Banks generally offer a service called Savings Bank Account (SB Account) for non-business purposes like personal money transactions.

 

By opening a savings account, customers can deposit and withdraw their money at any time. Customers can also make profit through interest on the money they put in the bank.

 

Where to open a Savings Bank Account (SB Account)?

It is usually best to open an account at the nearest bank branch to the customer's location for cash transactions and other banking services. A dedicated form will be issued by the Bank while opening a savings account. Customers have to fill in their exact details for the questions asked in the form.

 

What are the documents required to open a SB Account?

Name, Address, Phone Number, Signature are some of the important details that are to be filled carefully while filling the opening form for a bank account. Along with the completed form, the below mentioned documents should also be submitted.

 

1. Aadhaar Card

2. PAN Card

 

With the above given documents, recently taken passport size 3 or 4 should be submitted. In the absence of Aadhar Card and PAN Card, documents like Voter ID, Driving License, Passport can be submitted. Sometimes, the documents requested by the bank should also be submitted.

 

What should be the minimum balance in the account?

At the time of opening a savings account,the customer has to deposit the desired amount(more than Rs.1000/-)as a deposit in the customer’s account. Also while transferring money through this savings account, there should be a minimum balance of at least Rs.1000/- in the customer’s account. If the deposit amount in the bank account is less than Rs.1000/-, a certain amount per month will be deducted from the customer’s account as Minimum Balance Charge. Therefore always a minimum amount of Rs.1000/- should be maintained in the savings account. The above mentioned Rs.1000/- will vary from one bank to another depending on the city where the bank is located.

 

How to get an ATM Card?

The ATM Service greatly helps to avoid spending time going to the bank to deposit and withdraw money from the account. Customer has to apply for an ATM Card in the Bank to use the ATM service. After the Bank accepts the Customer’s application, the ATM Card will be given to the Customer directly at the Bank or will be delivered to their address within a specified time. After receiving the ATM card, the customer needs to follow the instructions given by Bank

 

What is a Passbook?

All the important details like Customer details, Bank name, Bank Branch name and address in the savings account opening form will be included in the Passbook. Passbook is a book that marks all the transactions made by the customer. The customer should be responsible for this Passbook. The customer has to take the Passbook to the bank and entry the transactions made in the account regularly.

 

How to appoint a Nominee in an SB Account?

While filling the savings account opening form, customers have to fill the Nomination section very carefully. According to the rules of Reserve Bank of India(RBI),a Nominee has to be appointed in the form. If you do not have a Nominee while opening the account, you can approach the bank directly and appoint a nominee.

 

Only those who have attained the age of 18 years should be appointed as Nominees. Incase of death of the bank account holder, only the person named in the nomination can withdraw the money from the account. So it is better to appoint either a family member or a trusted person as Nominee.

 

Can an SB Account be opened in the name of the children?

A Savings Account must be opened by either parents or guardians in the name of the children under the age of 18 years. Children holding an account until the age of 18 must have the account operated by their parents or guardians. Children cannot directly access the bank and get any services. Only when they are accompanied by their parents or guardians, children can open an account or access other services in the bank. It is necessary that the child’s parent or guardian must have an account in the same bank.

How to make a profit with interest?

 

A certain percentage(3% to 5%) of the money saved in the bank will be sent directly from the bank as an interest for every 3 or 6 months to the customer’s account. For example, if a customer has Rs.1,00,000/- in his account, then as an interest upto Rs.3,000/- will be credited to his account. The interest will vary from one bank to other depending on the city where the bank is located. So by using the bank account properly, you can make a profit with the money you have.