Savings bank accounts can be opened by individuals and certain organizations for saving purposes rather than business activities. Eligible account holders include individuals, HUFs, minors, trusts and associations. Accounts can be single, joint, or held jointly with survivorship rights. Interest rates are set by individual banks within RBI guidelines. Minimum balance requirements and penalties for non-maintenance are specified. Premium accounts offer higher withdrawal limits and services for maintaining higher balances. Documentation required includes proof of identity and address.

1. Saving Account

2. Savings Bank accounts are opened mainly for saving
purpose and not for the business purpose, and therefore,
such accounts cannot be opened in the name of any
business concerns whether
proprietary/partnership/company or association.
INTRODUCTION:-

3. Eligibility
The following types of
customers are eligible to
open an ordinary saving bank
account :-
Eligibility
Individuals
Two or more
individual
Minors
Illiterate and
blind person
Hindu
undivided
family
Clubs,
Association,
Committees,
Societies,
Schools, etc.
Trusts
Executors and
Administrators

4. Types of Account Holders:-
• Single/Individual :-A single person can open a account with his or her own name.
• Joint Holders:-A joint account is an account in the name of two or more person.
• Either (or) Survivor:- the most common form of joint account, only two individual can operate the
account i.e. primary and secondary account holder.
• Anyone (or) Survivor:- this is similar to “either or survivor” option.The only difference is, more than two
individual can operate the account.
• Former (or) Survivor:- in this account only primary account holder can access an operate the account till
the time he/she is alive.The secondary account holder can operate the account only after the death of
primary account holder.
• Latter (or) Survivor:- in this account secondary account holder can access an operate the account till the
time he/she is alive.The primary account holder can operate the account only after the death of
secondary account holder.
• Jointly:- In this type of account, all the transaction need to be signed and mandated by all the account
holders. If any of the account holder dies then the account cannot be further operated.
• Jointly (or) Survivor:- It is same as jointly option but the difference is, the survivor can continue to
operate the account.
• Minors:- Minor below 18 years old can open an account jointly with parent/guardian. For
e.g.:- SBI [pehla kadam (any age below 18) and Pehli Udaan (above the age 10)]
• HUF( Hindu Undivided Family)

5. Interest Rate
• The rate of interest in saving bank account was 4% p.a as mandated by the government in
may 2011.
• However the interest rate on a saving bank deposits liberalized, so each bank can decide its
own rate of interest.
• Presently, majority of the banks give 4% to 6% interest on the balance in the account.
• Banks now use this as a competing factor and weave it into their merits to enhance their
customer.

6. CASE STUDY:-
• Mr. Sachin had a balance of 50000 in his account as on January 10th. On
January 20th, he received 100000 as maturity bonus for his LIC policy. On
28th January he had withdrawn 1250000 for making a down payment for
his new flat, thereby reducing his account balance to 25000. In his case, the
bank would consider 25000 for interest calculation, as it is lowest amount
available in his account between 10th and 28th January. So , the interest
amount Sachin is eligible for the month of February will be for 25000
@ 4% p.a. which amounts to 83.33

7. Minimum Balance Requirement
• Banks require a certain minimum balance to be maintained in saving
account. Some bank insist on a minimum balance at all times, and others
insist on a AVERAGE MINIMUM BALANCE (AMB) during a period of three
months generally known as the AVERAGE QUARTERLY BALANCE (AQB).
• Banks offer a variety of SB account keeping in mind the specific needs of
customer and their capacity to maintain the AMB and AQB.
• Banks charge the penalty if the AMB and AQB is not maintained in the
account.This aspect should be discussed with the customer and
transparently disclosed at the time of account opening in order to avoid
disputes at a later date.

8. In the different banks theAMB is as follow as:-
Banks Basin catholic
co-op bank
Bank of India ICICI Standard
Chartered
Interest rate 4% 4% 4% 4%
AMB 500 500 10000 25000
Penalty 25 30 350+service tax depend on
amount
maintained

9. AMB of saving account and premium account
0.00
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
120,000.00
Normal Silver Gold Platinum
AMB ICICI BANK
AMB ICICI BANK
• Depositor can withdraw up to 50,000 for the normal, silver and gold account.
• Whereas the depositor with platinum account can withdraw cash up to 200,000 from ATM.
Premium Accounts
Banks provide special/premium account for the special customer who has the capacity to maintain
AMB more than 50,000 to 1,00,000.This account holder get extra services.The premium
accounts are as follow:- a. Silver Account,
b. Gold Account,
c. Platinum Account.
10,000
25,000
50,000
1,00,000
₹
₹
₹
₹

10. Saving account for NRIs and Returned NRIs :-
NRO Account NRE Account RFC Account
FULL FORM Non- ResidentOrdinary
Account
Non- Resident External
Account
Resident Foreign Currency Account
ACCOUNT HOLDER NRI NRI RETURNED NRI
DENOMINATED IN RupeeAccount (Rupees) RupeeAccount (Rupees) (US dollar, pound sterling, EURO )
PURPOSE Generally opened by NRIs
who earn income in India.
eg.:- 1. rental from their real
estate property.
2. Pension, etc
This accounts are operated by
the NRIs who earn income
abroad.
eg.:- salary
Generally operated by NRIs who
returning back permanently in India.To
park overseas income as foreign
currency in India, without converting it
into rupees.
eg.:- sale of EligibleAssets outside
India.
Types of Account Saving account, current
account and term deposit.
Saving account, current
account and term deposit.
Saving account and fixed term deposit.
Repatriation Only for interest not principle Both Both
Exchange Risk Yes Yes No

11. ‘No-frills’Accounts:-
• To achieve the objective of greater financial inclusion, all banks have been
advised by the RBI to make available a basic banking ‘no-frills’ savings bank
account either with ‘nil’ or very low minimum balance.
• A Revolutionary Financial Inclusion Program:- Prime Minister Jan Dhan
Yojna (PMJDY).
24.98 Crore Accounts opened so far
44,221.27 Crore deposits.

12. Facilities available with a Savings bank account
• Cash deposit and withdrawal
• Clearing of cheques
• Anywhere banking facility
• Debit card
• ATM facility
• Internet banking
• Mobile banking
• Remittance facility such as
• Fund transfer
• Demand draft
• Tax collection

13. Documents required for opening saving bank account.
• Print out the Account Opening Form (AOF)
• Proof of identity and address (Passport,Voter's ID, Driving Licenses, Aadhar
card, NREGA card, PAN card)
• 2 recent passport-size coloured photographs.
• In the case of minors below the age of 10, ID proof of the person who will
operate the account is required.

14. Conclusion
• Savings bank account are meant to promote the habit of saving among the
citizens while allowing them to use their funds when required.
• The main advantage of saving account is its high liquidity and safety.
• On the top of that saving bank account earn moderate interest rate too.
• Saving account made easy for account holder to travel cashless as he has
option to withdraw cash from any branch of same bank or any ATM.

15. THANK YOU