The most popular type of bank account in India is a savings account. They are crucial for helping individuals store and manage their money effectively. Hence, knowing saving account definition is of great importance. Understanding its services and features allows you to handle transactions and payments with ease and convenience. For example, with online banking, you can do anything from investing in mutual funds to paying bills with a few simple clicks. For your information, the person who receives your payments is known as the payee.
If you are new to managing your savings account, keep reading! It discusses all the important features you need to know to get the most out of your savings account. If you are planning to open a new one, this article will benefit you as well.
Taking a Look at Savings Accounts
Savings accounts operate in a straightforward manner. They allow individuals to seamlessly withdraw and deposit money as per their needs. Here are some important features and capabilities of savings accounts in general.
Minimum Balance: Most regular savings accounts have an average minimum balance requirement. Penalties are imposed on the holder for failing to maintain the balance. Each bank has a different minimum average balance and penalty. To avoid this, you could try opting for a “zero minimum balance” savings account, which is now provided by numerous banks like Kotak Mahindra Bank.
Interest Rates: A very attractive feature of savings accounts is the additional savings generated by interest rates. This means that keeping money in your account is beneficial to you. Interest rates can range from anywhere from 3% and go up to about 7%. Customers can profit from their deposits and progressively increase their savings thanks to the interest returns.
ATM and Debit Card Facility: When you open a savings account, you get a Debit Card for your use. It can make transactions very simple. Your debit card allows you to make online payments, and withdraw from ATM, and can even be swiped at retail establishments. If you need money right away, you can access your account from another bank’s ATM if needed.
Net & Mobile Banking: With your savings account, every bank offers net banking and/or mobile banking capabilities. You simply have to log into your account to send or receive payments online. Net banking and mobile banking are extremely handy features that allow you to access your savings account at any time. It also offers other features such as viewing account statements, requesting services, and more.
Passbook and Chequebook: In other features, your savings account also has a passbook and cheque facility. As you may know, a chequebook
is a form of payment used to transfer funds. It is still a popular form of payment in this digital age, especially preferred by businesses. All of the transactions listed on your account statement are stored in your passbook.
Payee Meaning
A payee is the person or entity who receives money in a financial transaction. You can use any form of payment such as a cheque or an online payment to make the payment. The payer might get products or services in exchange. On the bill of exchange, the payee’s name is written. It can refer to a person or an organisation, company, trust, or custodian.
Conclusion
Now that you know savings account definition and all the features it contains, you are ready to begin using yours wisely. Make sure you use the diverse and flexible features of your account to complete transactions with ease. Linking your savings account to online payment methods can allow you to cover most of your utility payments easily. You can easily revisit your payee list, meaning you can find the recipient of your payments anytime.
