The step by step guide to opening a savings bank account

If you are about to open a savings bank account, we guide you through the procedure and the documentation required.

Every person who makes an income starts by opening a savings bank account. It is the best way to stow away one’s surplus funds and use it in the future for personal and professional purposes. Whatever money one earns or saves every month can be safely put away in the savings account. It is the best way to put away your savings and also earn interest from the bank.

Since the bank records every transaction in your account and keeps a check of the funds in your savings account, the interest is calculated and paid quarterly. Thus, the interest provides additional earning on your funds.

But how does one open a savings account? Consider the following tips:

* Pick a suitable bank branch.It is always wise to pick a bank that is located close to your residence or place of work. Those whose banks are located far away may face difficulty in reaching it in times of emergency. Apart from picking the right bank and branch, look for one whose Internet banking interface is very easy and convenient.

* Find out the formalities. The bank will tell you about the documentation, money to be deposited and the application form to be filled to open the savings account.

* Fill out the paperwork.The bank’s application form is quite self-explanatory, but do get queries answered before you fill out the form. You will need to fill a form even if you apply for savings account online.

* Attach the correct documents.You must attach self-attested copies of your address, income and ID proofs with your completed application form. The proofs can include passport/Aadhaar card/electricity or landline phone bill in your name, salary certificate from the employer, bank statements showing income and PAN card copy. Also attach two passport size photographs with the form and prepare the cheque to deposit with the bank.

* Verification and account opening procedure.After you submit the form, the bank will take a while to process and verify the information submitted. Once verification is complete, the account opening cheque is deposited and the bank intimates you about the savings account opening. At this time, you will be given the account opening kit (with cheque book, pass book and literature about your bank account). You can also ask for your Internet banking credentials at this time or apply for it separately.