A Brief Overview Of Savings Account Rules And Transaction Limits

By Author: arijit
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Initially, you would keep your earnings in your cupboard drawer. With time you realised having a significant amount of money in hand is both difficult to manage and risky. That’s when accounts came into the picture. It is a financial product that helps you secure your earnings and at the same time keeps them easily accessible. There are different accounts you can open, and Savings Account is one.
Savings Account is an interest-bearing account. This means you earn a competitive interest rate on your deposits. The account is ideal to meet your daily banking requirements. Since the account can be opened in no time by completing a simple procedure it is also known as Insta Account. You can complete the account opening procedure both offline and online.
Like every other financial product, a certain set of rules govern Savings Account operations. Following are the various Savings Account rules and transaction limits you should be aware of:
Minimum balance requirement
Almost ...
... every bank follows the minimum balance requirement norm. It is the account balance you need to always maintain. This concept was introduced to ensure that one does not go overboard with spending and save a part of their income. If you fail to maintain the minimum balance requirement you are liable to pay a penalty. Both the balance requirement and penalty amount vary from bank to bank.
Account usage
You need to keep your account operational. If you do not use your account for a prolonged period, the bank will either freeze or declare your account to be dormant. Thereafter, you will have to complete the reactivation procedure to get your account operational again. But it is always better to keep your account active. Make at least one ATM withdrawal or online transaction in a financial year through Insta Account to keep it operational.
Debit Card usage
Like your account, if you do not use your Debit Card for a prolonged period, it gets deactivated. Upon deactivation, you cannot make ATM withdrawals or online transactions using your card. Use your Debit Card at least once in six months to keep it activated.
Deposit and withdrawal rules
There is no maximum limit to the number and value of deposits you make to your Savings Account. You can make a cash deposit by visiting the nearest bank branch. You need to submit your PAN card details if the cash deposit amount is above Rs 50,000. You can withdraw funds from your account at any ATM. The account opening online allows you to make seamless online transactions as well. The limit for both withdrawal and online transactions differs.