How to Open Your First Savings Account?

The first step towards a healthy financial life is your savings account. When you save enough money to support yourself for a few months, you can start thinking about various investment options.

Opening a new savings account is an easy process. But, you first need to comparison between various lenders and the services they offer. Let’s look at the process step-by-step.

1.    Start by Choosing the Right Bank

You need to choose the right bank for account opening. The decision to choose a bank is based on many factors. Your family might have a long-standing relationship with a particular bank. Or, you might choose a bank due to its proximity to your house. However, with online banking facilities, you no longer need to consider the distance factor.

Here are some pointers to focus on while choosing a bank:

  • Competitive interest rates
  • Paperless account opening with video KYC
  • Signature debit cards with free and unlimited ATM transactions anywhere in India
  • Cashback on ATM card activation and higher POS limit
  • Minimal and transparent fees
  • Free personal accident insurance cover
  • Lower minimum account balance
  • Mobile banking app and WhatsApp banking
  • Attractive vouchers on registration and first transactions

Check your eligibility before you proceed to open an account. In case the numbers confuse you, use a savings account interest simulator to calculate your exact interest income for a specific time period.

2.    Gather All Required Documents

It is a good idea to gather all the required documents before applying to make the process faster. Requirements may differ based on whether you are applying for a savings account online or physically.

Some common documents you might be asked for include:

  • Aadhaar card
  • Pan card
  • Photo ID (passport, voter ID, aadhaar card, driving license, etc.)
  • Address Proof (above-mentioned documents and sometimes utility bills)

3.    Decide How to Apply

You can choose to open an account online or physically by visiting a branch. Fill in details like your name, mobile no., email ID, Aadhaar no. and PAN no. An OTP will be sent to your mobile. After you fill in all these details, you will be provided a new account opening form. For digital KYC purposes, you can upload your Aadhaar card and PAN card/form 60.

Application to open a new account can also be done from your banking app. New account opening typically takes a day or two.

4.    Choose Your Deposit Amount

After your account is active, you need to deposit funds into it. Check to see the bank’s average monthly balance requirement.

You can deposit fund through:

  • Cash
  • Cheque
  • Online (if you have applied for internet banking)

5.    Start Your Savings Journey

It is a good idea to choose a bank that offers a lot of opportunities for financial protection and wealth accumulation. For instance, you can periodically use your savings account to make SIP payments in mutual funds, pay the monthly loan EMIs or pay a premium towards insurance policies.

Choose your savings account wisely, after careful research. Consider all options to find the best interest rates at the lowest cost.