The document discusses various reasons for saving money and the benefits of using a bank account. It notes that savings are important for future needs, emergencies, large expenses, and securing money from loss or theft keeping it at home. Having a bank account allows deposits to earn interest, creates credit eligibility, and provides secure access to loans, remittances and banking services through various channels including ATMs, internet and mobile banking. Key banking products like savings accounts, fixed deposits, loans and insurance are also summarized.

1. Why
Savings
are
needed?
With
savings,
in
the
future
you
can
buy
what
you
can
not
buy
today
Future
Needs
Emergencies
Unexpected
Expenses
like
Illness,
accident,
death
Large
Expenses
To
meet
larger
expenses
like
purchasing
a
house,
marriage,
educaBon
Unsafe
Money
can
be
stolen
or
lost
due
to
natural
calamiBes
Drawbacks
of
Cash
at
Home
Loss
of
Growth
Opportunity
Loss
of
Interest
Income
No
Credit
Eligibility
Deposits
in
Bank
creates
Credit
Eligibility
Inculcate
habit
of
Saving
Avoid
risk
of
chit
funds,
sahukars
Secure
Money
Earn
Interest
Loans
RemiLances
using
Cheque
Demand
DraN
Bank
Why
Bank
is
needed?
In
case
of
no
official
documents
“Small
Accounts”
can
be
opened
by
submiOng
recent
photograph
and
puOng
signature
or
thumb
impression
in
the
presence
of
Bank
Official
Documents
for
Opening
of
Bank
Account
Passport
Pan
Card
Driving
License
Aadhar
Card
Voter
Id
Card
Photograph
Manrega
Card

2. Recurring
Account
Saving
Account
Fixed
Deposit
Banking
Products
Monthly
savings.
Interest
paid
higher
than
savings
bank
account.
Normal
transacBon,
flexibility
for
deposit
and
withdraws,
passbook
and
cheque
book,etc
Fixed
deposit
for
7
days
to
10
years,
higher
interest.
EducaBon
Loans
Pursuing
Higher/VocaBonal
studies
in
India
maximum
10
lakhs
and
abroad
20
lakhs.
OverdraNs
Excess
money
withdrawal
over
balance
in
accounts
on
basis
of
eligibility
Banking
Service
Delivery
Channel
Cash
Withdrawal
through
ATM
/
RuPay
Debit
Card
ATM
Account
Opening,
Cash
Withdrawal
/
Deposit,
Fund
Transfer
Bank
Mitra
with
Micro
ATM
Point
of
Sale
All
Banking
Services
Branch
Fund
Transfer
,
Bill
payment,
online
shopping
,Bcket
Internet
Banking
Mobile
Banking
Fund
Transfer
,
Bill
payment
Mobile
wallets
Mobile
based
virtual
wallet,
preloaded
amount
for
online
and
offline
spends
Purchasing
and
limited
cash
withdrawal
NaIonal
Electronic
Fund
Transfer
(NEFT)
Real
Time
Gross
SePlement
(RTGS)
Inter-­‐Bank
Transfer
of
any
amount
Inter-­‐Bank
Transfer
of
Rs
2
lac
and
above.

3. Insurance
Life
Insurance
Non-­‐Life
Insurance
An
agreement
in
which
a
person
makes
regular
payments
to
a
company
and
the
company
promises
to
pay
money
up
to
the
insured
amount
if
the
person
is
injured
or
dies,
or
to
pay
money
equal
to
the
value
of
something
(such
as
a
house
or
car)
if
it
is
damaged,
lost,
or
stolen.
Protection against future loss
What
is
Insurance?
Accidental
insurance
coverage
of
Rs
2
lacs
at
a
premium
of
Rs
12/-­‐
per
annum/
member
(Age
18
–
70)
Life
insurance
coverage
of
Rs
2
lacs
at
a
premium
of
Rs
330
/-­‐
per
annum/
member
(Age
18-­‐50)
Assured
pension
of
Rs
1000/-­‐
to
Rs
5000/-­‐
(Age
18-­‐40)
Social
Security
Schemes
PPF
The
Public
Provident
Fund
is
savings-­‐
cum-­‐tax-­‐saving
instrument.
It
mobilize
small
savings
by
offering
an
investment
with
reasonable
returns
combined
with
income
tax
benefits.
Pension
A
plan
for
seOng
aside
money
to
be
spent
aNer
reBrement
• Launched
by
Hon’ble
Prime
Minister
on
28th
August
2014.
• The
scheme
focuses
on
coverage
of
households
in
rural
as
well
as
urban
areas.
• RuPay
Debit
Card
provides
in-­‐built
Accidental
Insurance
Cover
of
Rs
1.00
Lac.
• OverdraN
facility
up
to
Rs
5000/-­‐
Pradhan
Mantri
Jan-­‐Dhan
Yojana
Cheque
Demand
DraV
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18
Banking
Instruments
For
cash
withdrawal
at
Automated
Teller
Machine/Point
of
Sale
(PoS)/Micro
ATM
through
PIN/Password,
cashless
payment
for
purchases
etc.
ATM
Debit
Card
RuPay
Debit
Card