Learn everything about a savings account, an easy, safe and convenient option for managing your day-to-day money matters.

Main features
Key features of a savings account
1. Safe – Money up to Rs 1 Lakh is guaranteed by RBI
2. Convenient – Access money, both online and offline at a ATM or a branch.
3. Pay money – Pay utility bills, mutual fund investments, insurance premiums among others.
4. Get money – Get Salary, Interest, Dividend, Pension among others

Interest
Depends on the bank. Most banks offer around 4% per year interest.

Debit card
Most banks provide a debit card when you open an account. To use a debit card, you usually need a PIN, usually a 4 digit number, chosen by you and known only to you.
Common uses of a debit card
1. Withdraw money at an ATM.
2. Do various operations at an ATM like deposit money and change PIN.
3. Pay for transactions – both at physical and online shops.

Cheque
You can get a cheque book at the time of opening an account.
Common use of a cheque
1. Pay your bills.
2. Pay money to others.
3. Provide bank account details through a cancelled cheque.

Netbanking
With most banks, you get a net-banking facility.
You can use it with a user name and a password.
Banks typically auto-generate a password at the time of opening an account and send it to you.
You can change this password later to something only you know by logging in to the bank website.

Netbanking – Common operations
1. Check balance (money in your account)
2. Transfer money to another account, using online transfer
3. Pay your bills like electricity, water, telephone.

Safety
Your money is protected by RBI up to Rs 1,00,000 per person. So even if the bank goes down, you are protected by the RBI, an Indian government organization.

Minimum balance
Pay attention to minimum balance requirement of your savings account.
If you do not maintain minimum balance, banks can charge you a penalty as high as Rs 1000 per month.
Typical private bank savings account with net-banking facility will have a minimum balance requirement of Rs 10000 (Ten thousand rupees.)

Charges
Banks impose various charges on your savings account
Typical charges you will have to pay
1. Debit card fee – Usually around Rs 100 per year
2. SMS charges – Charged for sending transaction and other account activity messages to your account.

Deposit money
You can use multiple methods to deposit money
1. Pay cash to your account either at a bank branch or at an ATM.
2. Deposit a cheque given to you by others.
3. Online transfer to your account.

Withdraw money
With a savings account, you can withdraw money any time.
There are multiple methods to withdraw money
1. Go to an ATM and withdraw cash.
2. Go to a bank branch and withdraw cash.

Taxation
Interest up to 10,000 is tax-free for an individual.
In other words, if you get less than 10,000 rupees as an interest across all your savings accounts, you do not have to pay tax on the interest.

Statements
You can opt for getting statement delivered to your postal address or get a online statement through email.

Resources
HDFC Savings Account
ICICI Savings Account
SBI Savings Account