Question

Write a short note on savings account.

Answer 1

Savings account:

• A person can open a savings account in a bank with an objective of saving a part of income and earning some interest on the money deposited in the savings account. The customer earns interest depending on the amount he maintains in his account. Generally it is compulsory to maintain a minimum balance as decided by the bank in the savings account. Moreover, generally a person can withdraw money only a limited number of times per month. The account holder can withdraw money with the help of cheque, by filling withdrawal slip or using ATM card.
• A savings account can be opened on an individual name or along with someone as a joint account. One can also register the name of the nominee for the account.
• In savings accounts the bank provides its customers the facility of deposit/withdrawal, issuing cheques, ATM cards, etc.
• Bank gets large deposits through several saving accounts it maintains.