Saving Account

Salary Account
Current Account
Saving Account

Savings Bank accounts are opened mainly for saving purpose and not for the
business purpose, and therefore, such accounts cannot be opened in the name of
any business concerns whether proprietary/partnership/company or association.

It is also known as Deposit account.

Who can Open Account & Procedure
• Every citizen can open a saving account.
• NRI (Nonresident Indian)
• PIO (Person of Indian Origin)
• Foreign Nation Resident in India
Procedure
• KYC
• Photo of the account holder and his address
• Keeping min. balance
 You open savings account with the
bank.

 How Savings The bank pays you certain interest on

the money that you deposit in your

Account Work account.

The bank then loans that money out

to other people, only they charge a
slightly higher interest rate on the
loan than what they pay you for your
account.
 Single/Individual :-A single
person can open an account
with his or her own name.
Types of Joint Holders:-A joint account
Account is an account in the name of
two or more person.
Holders
Minors:- Minor below 18 years
old can open an account
jointly with parent/guardian.
 Bank savings account are relatively safer and
helps save your money.
The rate of interest in saving bank account was min. 5.65 per cent to 6.15%
p.a. as mandated by the RBI, each bank can decide its own rate of
interest.

Benefit of Get started with minimal cash.

Savings It is possible to pay bills from your savings

Account account.

Online transaction facility

Helps in getting loan

 Helps keep your money liquid with interest rates.

You can use your account to shop online.

Features of Provides facility to transfer your money to other

Savings
people safely.
Banks provide with Debit card which helps you
remove money from your savings account using bank

Account ATM.

It is continuing in nature like it never mature.

EMI is payable on saving account.

 Banks require a certain minimum balance
to be maintained in saving account. Some
bank insist on a minimum balance at all
times, and others insist on an AVERAGE
MINIMUM BALANCE (AMB) during a period
Minimum of three months generally known as the
AVERAGE QUARTERLY BALANCE (AQB).
Balance
Requirement Banks charge the penalty if the AMB and
AQB is not maintained in the account.
Premium account
• Banks provide special/premium account for the
special customer who has the capacity to
maintain AMB more than 50,000 to 1,00,000.This
account holder get extra services.
• The premium accounts are as follow:-
a. Silver Account – Rs 25000
b. Gold Account – Rs 50000
c. Platinum Account – Rs 100000
(AMB From ICICI BANK)
• Depositor can withdraw up to 50,000 for the
normal, silver and gold account.
• Whereas the depositor with platinum account can
withdraw cash up to 200,000 from ATM
 Can open savings bank account either with ‘nil’ or very low
minimum balance.

The account holder gets access to internet banking, debit card

and access to ATMs with 0 balance

No-frills No fine on inactive accounts.

Accounts Zero charges on debit cards.

Only Indians can open a zero-balance account. This

account can is not opened by NRIs (Non-resident Indians) and
PIOs (Persons of Indian Origin).

Can’t deposit more then Rs 50000.

Salary Account
• Salary Account is a type of Savings Account, in
which the employer of the account holder deposits a
fixed amount of money as ‘salary’ every month.

• You can withdraw all the funds from the salary

account, which is why it is also known as a zero
balance account.

• If the salary has not been credited to your Salary

Account for a certain period of time (usually three
months) then the bank will convert your Salary
Account into a regular Savings Account with a
minimum balance requirement.

• Also knows as Regular salary account

 Business employer has to tie-
up with a bank to open Salary
Who can Accounts for its employees.
open a Salary Salary Account cannot be
Account? opened by just any
individual; it has to be a tie-
in between a business and a
bank.
 This account is designed for defence personnel.

Free Debit card.

DEFENCE Personal death cover upto Rs 30 lac.

SALARY If the account holder is there is Education benefit upto

ACCOUNT
Rs 1 lac per year for 4 years.

Retirement benefits like can open a new pension account

or can credit pension money to salary account.

Access to very ATMs.

 Zero minimum balance

Benefits of a Online Fund Transfers and Phone Banking

Salary Debit Card

Investment Services like Demat account

Account NetBanking

Free 20 Multi city cheques per ann.

Free Personal Accidental Death Cover of Rs 5 lac.

 A customized salary account for select corporate.
Special offers and benefits such as a free zero
balance account for you.

Free Personal Accidental Death Cover of Rs 30 lac.

PREMIUM
SALARY
Free Titanium Debit Card with ATM cash
withdrawal limit of Rs. 50,000/- per day and
shopping limit of Rs. 75,000/- per day 

ACCOUNT Free add-on International Debit Card 

Transfer funds online to any bank across the

country through NEFT / RTGS
 Difference between Salary Account and Savings
account

Salary Account Savings Account

• Can be opened only by an employer • Can be opened by any eligible individual

• Zero-balance account • Minimum balance needs to be maintained

on monthly/quarterly basis
• More benefits to the account holder
• Benefits offered usually have a fee
• Main purpose: monthly credit of salary attached

• Interest between 2-4% paid • Main purpose: encouraging savings

• Interest between 3-6% paid

 Introduction

It is a deposit account that can be taken in the bank by filling a bank accounts application. It is used
for the convenience of withdrawing or depositing funds. Banks in India generally offer these bank
accounts for business ventures and operations.

The level of competition amongst businesses has skyrocketed over the last decade and today, it is
at a level which only few thought was possible. To grow a business, the entrepreneur has to
regularly update all their business needs and goals with the help of money. A current account gives
you better options to send and receive funds instantly to almost any part of the country. The
current account is also known as demand deposit.
 What are the uses of a current
account?
▶ Bank accounts make it possible for the applicant to deposit and withdraw funds at any time for
whatever reason the bank account holder may have. There are no interest rates charged for these types
of accounts by banks in India and you can fill the bank accounts application from any bank and get
instant access to your account.
▶ The applicant can only choose certain types of options to deposit the money.
▶ You can directly go to the bank and deposit the funds
▶ If you have a current account, you can send the cheque by post to the bank to deposit money to
your bank account
▶ You can use electronic transfer
▶ Use the debit card to buy any products and services online or from any retail/shopping stores
that have the option to check debit card and process payments.
Features

There are many features and benefits that an applicant can avail by applying for a current
account. Some of these are given below:

▶ Banks in India charge no fees for transfers of funds from one account to another
▶ You can pay and collect the money through RTGS (Real Time Gross Settlement) and NEFT
(National Electronic Funds Transfer System)
▶ A certain limit on the demand draft and pay orders per month are applicable
▶ There are no special charges for clearing the cheques in any part of the country
▶ You can withdraw or deposit at any branch of the banks in India
▶ The bank accounts are safe, secure and convenient
▶ You can enjoy all the benefits such as phone banking and net banking and for any queries, you can
contact the customer support representatives of the bank
 Who Can Open?
▶ This account is opened for business or commercial use.
▶ Normally current account is opened by those who have commercial interest and have need to issue
many cheques.
These include:
▶ Individuals
▶ Sole proprietorships
▶ Hindu undivided family
▶ Partnerships
▶ Trusts associations
▶ Societies and clubs
▶ Limited companies
 Documents Required
Sole Proprietorship Hindu Undivided Family Partnership Company Trust /Association

Id proof & address proof of the Id proof of all directors/authorised

Id proof & address proof of the PAN card of the firm/Id or
proprietor Utility bill such as signature PAN card of directors Id proof & address proof of the
Karta , id of proof of the address proof & photos of the
Telephone/Electricity bill in the passport, voter id card founder
coparceners partners
name of the proprietary concern
Deceleration from the Karta

Registration certificate, Certification of incorporation, Trust deed, registration

Certificate license issued by Id proof & address proof of the Commencement of business, certificate
municipal authorities Deed of deceleration of HUF person holding POA Memorandum & Article of List of trustees with their
association signature

Company pan card or

Partnership deed, partnership
Sales tax/central sales tax/value acknowledgement (less than 90
Photos of Karta registration certificate Power of attorney
added tax days)

Certified board resolution,

Income tax return in the name of of attorney granted to its manager
officers or employee to transact on Telephone Bill
proprietor
its behalf
 Facilities

▶ Overdraft – An overdraft is a facility granted by the bank to a current account holder.

Overdraft is an arrangement between a bank and its customer by which customer is allowed to withdraw
over and above his credit balance in the current account. There is an agreed limit of overdraft. This is a
temporary facility usually provided to the current account holder. The burrower is permitted to withdraw
and repay any number of time up to the sanctioned limit.
Interest is charged only on the amount overdrawn by the burrower. It is an short term facility.
▶ Cash credit – Under this facility a separate cash credit account is opened and the customer can burrow
fund from this account upto a certain limit. The limit is decided depending on the collateral security that
the customer offers to the bank for providing this facility. The bank charge interest on the amount
withdrawn.
▶ Nomination facility - A depositor is permitted to officially authorise someone, who would receive the
money of his account when the depositor passes away. This is called nomination process. Nomination
facility is available to all deposit account opened by individuals.
Nominee is a also available to the sole proprietary concern account.
 Responsibilities of the current account
holder
▶ There are certain responsibilities that the applicant must have and follow in order to maintain proper
transfers to and from the account:
▶ Make sure to keep all your bank accounts and PIN number from the reach of anyone else
▶ Banks in India issue account statements every month by sending them to your email or
residence address. Collect all the statements and keep them up to date.
▶ Don’t ever sign in the cheque book. If you have any cheques that are not valid destroy them
immediately
▶ Banks in India require you to inform them of any change in the residence address, phone
number, loss of cheque book or cheque
▶ In case of theft or loss of Debit card or credit card, make sure to inform the bank to block your
account
 Advantage of current account
▶ Current account is mainly opened for businessmen such as proprietors, partnership firms, public and
private companies, trust, association of persons, etc. that has a large number of daily banking
transactions, i.e. receipts and/or payments.
▶ It enables businessmen to carry out their business transactions properly and promptly.
▶ The businessmen can withdraw from their current accounts without any limit.
▶ It helps businessmen to make a direct payment to their creditors by issuing cheques, demand-
drafts or pay-orders, etc.
▶ It enables a bank to collect money on behalf of its customers and credits the same in their
customers' current accounts.
▶ It enables the current account holder to obtain overdraft (short-term borrowing) facility.
▶ It facilitates the industrial progress of the country. Without its help, businessmen would face
difficulties in running their businesses.
▶ It has the facilities of Internet-banking and mobile-banking to carry out important business
transactions with ease and quickly.
 Disadvantage of current account

There are a couple different disadvantages of using a current account.

▶ One of the disadvantages of a current account includes drawing a low interest rate.
▶ The initial paperwork when opening an account is lengthy and terms are difficult to
understand.
▶ Penalty is charged if minimum balance is not maintained as compared to the savings account
 Interest on current account

• ▶ Banks do not pay interest on balances maintained in a current

account
• ▶ The RBI prohibits the payment o f interest in the current
account. In addition, RBI also
• prohibits the payment of countervailing interest.
• ▶ Banks are permitted to pay interest on the current account of
a regional rural bank they have sponsored.
• ▶ Since May 1983 banks have been permitted to pay
interest on the balances in the current account standing in
the name of deceased individual
 Dormant Account and charges

▶ If there has been no customer initiated transactions in the account for 2 years, the
account will be designated as the “DORMANT ACCOUNT”
▶ Many banks reduced this period to 6 months. These accounts are subject to greater check, as
they are susceptible to fraud.
▶ Bank often insist on a minimum average monthly/quarterly balance to be maintained in
the account. If the balance is not maintained a service charges is levied.
▶ Client must be advised of any changes in the charges.
 Comparison of Bank
Columns ICICI Bank Corporation Bank Saraswat Standard Chartered
Cooperative Bank

₹ 5000 urban&metro ₹ 2500

AMB/AQB ₹ 10,000 ₹ 5000 ₹ 1,00,000
semi urban

NMMAB/NMQAB ₹ 300 ₹ 250 ₹ 600 ₹ 2000

50% concession through net

RTGS Free Free Free
banking

INTERNET BANKING Free Free Free Free

SMS Banking Free ₹ 100 Free -

50% concession through net

Demand Draft Free Free Free
banking
Replacement/ lost/
₹ 200 ₹ 200 ₹ 99 Free
stolen debit card
 Comparison of Bank
Saraswat
Columns ICICI Corporation Bank Standard Chartered
Cooperative Bank
Bank

Cheque Leaves 25 100 leaves free per year 50 3

Duplicate statement 100 Per Instant 50 Per Instant Free 40

ATM transaction at other

bank ATM outside India (per ₹ 108 - - ₹ 140
transaction)

NEFT Online Payment Free Free Free Free

 Closing an account

▶ To close an account all the account holders should write to the bank stating that intent to
close the account.
▶ All unused cheques should be cancelled and return to the bank.

The bank may also request the customer to close his account
▶ If the customer is no longer a desirable person and the account has not been operated for a long term.
If a customer cannot be traced, the balance placed in an unclaimed deposit account .
It’s a statement or correspondence sent to the customer is returned the balance and should be transferred
to the “Dormant Account” .
THANK YOU