Savings Bank Accounts are meant to promote the habit of saving
among the citizens while allowing them to use their funds when
required. The main advantage of Savings Bank Account is its high
liquidity and safety. On top of that Savings Bank Account earns
moderate interest too. Presently, the rate of interest is 3.50%
compounded half yearly.
Savings Bank Account can be opened in the name of an individual or
in joint names of the depositors. Savings Bank Accounts can also be
opened and operated by the minors provided they have completed ten
years of age. Accounts by Hindu Undivided Families (HUF) not engaged
in any trading or business activity can be opened in the name of the
Karta of the HUF.
The minimum balance should be maintained in a savings bank
account which is Rs 1000.