Savings deposit account is meant for small
businessmen and individuals who wish to save a little out of their current
incomes to safeguard their future and also to earn some interest on their
savings. A savings account can be opened with as a small sum of Rs. 500. A
minimum balance of Rs. 500 is to be maintained in the account if cheque book
facility is not required. However, if a cheque book has been issued, a minimum
balance of Rs. 1000 is necessary.
There are restrictions on the maximum amount
that can be deposited in this account and also on the withdrawals from this
account. The bank may not permit more than one or two withdrawals during a week
and may lay down a limit on the amount that can be withdrawn at one time.
Savings account holders are allowed to
deposit cheques, drafts, dividend warrants, etc., which stand in their name
only. For this facility, it is necessary that account holder must be introduced
by a person having a current or savings account in the same bank. However, the
banks do not accept cheques or instruments payable to third party for deposit
in the savings bank account. Banks allow interest on deposits maintained in
savings accounts according to the rates prescribed by the Central Bank.
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