Facts on Savings Accounts

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Facts about a Savings Account:  are the simplest of bank accounts that one can open. They are meant to promote the habit of saving among the citizens while allowing them to use their funds when required.

Savings Accounts can be opened in the name of an individual or in joint names of the depositors. The minimum balance to be maintained in an ordinary  accounts varies from bank to bank.

Public sector banks require a cheaper minimum balance compared to private banks.

Things to Consider While Opening a Savings Account

 It is advisable to seek all the facts on savings accounts so one aren’t a surprise with hidden fees. The following information you should obtain from banks before opening the account:

· Minimum balance requirements.

· Penal provision in case the balance falls below the minimum stipulated amount

· Bank charges applicable e.g. ledger fees

· Any extra fees chargeable

· What other benefits are offered by the bank e.g. loan facilities and banking flexibility

. Document Required For Opening a Savings Account (this might vary from one bank to the other)

· Two passport size photographs

· Legal form of identification e.g. Identity Card, Passport

· An introduction letter that acts as a referee from an existing account holder.

· Minimum opening balance

Some of the advantages:

· Savings account provides very high levels of liquidity. Every day, any time 24 hours, 7 days a week, you have the rights to withdraw your money via email if the bank is closed.

· There is interest paid annually on savings account and this varies from one bank to the other.

· Also provides a saving for the future.

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