People open simple Savings Bank Accounts for various reasons. You may want to save money consistently in a safe place, or you may think about different investment options and want to create an account exclusively to save the returns. An Indian resident, a Hindu undivided family, and a foreign national can easily open it with sufficient proof.
It is simple to open Bank Account online by filling out the application form and providing identity and residence proofs to the bank. Every bank should ask for these KYC documents from their customers for successful account opening and initiation. You should provide identity and address proofs while opening the account:
The documents considered as ID proofs include PAN Card, Aadhaar, Voter ID, Passport, Driving Licence, Employee ID, Central or State Government issued photo ID proofs and an NREGA job card.
You also need to submit some documents stating your place of residence on the Banking app while opening an account. These include Voter ID, Utility Bills, Passport, Driving Licence, recent Bank Account statements, bank passbook, Aadhaar, and a letter attested and signed by a gazetted officer. You need to submit the latest passport-size photographs, application form, KYC form, and the above documents.
Many banks now provide digital options to ease the process of form submission. Traditionally, you visit the branch where you want to open your account and submit photocopies of proof. Now, E-KYC allows you to submit documents from the comfort of your home.
You should also submit the PAN Card and link it to your account upon opening it. Having a PAN Card helps you save on taxes. If an individual with annual interest earnings exceeding Rs. 10,000 on savings deposits has not linked their PAN with the online Bank Account, the concerned bank will deduct TDS at 30% instead of 10%.
Without a PAN Card, you can submit Form 16 to the bank given by your employer, which mentions that TDS gets deducted from your salary. Employers should provide Form 16 to salaried individuals whose income falls under the taxable bracket. You need to file the income tax returns if your total gross income exceeds Rs. 2.5 lakh.
What are the account types?
Whether you are a housewife, college student, business owner, retired professional, or Indian living abroad, not having a Bank Account is unimaginable. The accounts offered by banks in India include Current Accounts, Savings Accounts, Salary Accounts, Fixed and Recurring Deposit Accounts, and NRI Accounts.
Points to note
Check and compare the benefits and interest rates using the Savings Account Interest calculator. Enter the variables, such as your account balance and interest rate, to evaluate the amount of interest earned. This tool is accessible online to assist you and attain your financial goals.