How to Open and Manage Savings Account?

Opening a savings account is pretty easy. All you need to do is to visit the branch of the bank where you wish to open the account, fill up the account opening form, submit your address and identify proof along with PAN card and it’s done.Today, you can also open a savings account online . Visit the website of the bank where you want to open the account, fill up the application form, and upload the relevant documents. The bank will call you to verify the details and upon successful verification, your account is opened.

Once you open your savings account, it’s important to manage it properly. Without proper management, your account would seize to exist and you might end up paying even a penalty. To manage savings account properly:

• Do maintain the minimum average balance This is an essential step in the direction of proper account management. There a minimum average balance (MAB) that you need to maintain in your account failing which can attract a penalty. The MAB differs across banks and cities. It’s generally higher for private banks as compared to PSU banks. Therefore, make sure to maintain this balance in your savings account.
• Keep crucial banking details confidential A savings account is mostly accompanied by a debit card, mobile banking, and online banking facilities among others. Keep your ATM, mobile banking, and online banking details confidential. Never reveal PIN or OTP to others. Fraudsters often impersonate as bank officials and ask for these details. Remember no bank official would ever call you for divulging these vital information regarding your savings account.
• Update contact information Today savings accounts demand contact information in the form of phone number and email id. Information regarding any transaction is intimated to you on your contact number. Also, during mobile and online banking, you receive the OTP on your phone number. Therefore, make sure to keep banks updated about your contact information for smooth operations.

Apart from parking money, a savings account helps you do several other things. You can use it to pay utility bills, loan EMIs, insurance premiums, and mutual fund SIPs, among others. Also, you can invest in various products through internet banking from your savings account.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.