About Personal Account
A personal account is an account used by an individual for its own needs. The term “personal account” may be used basically for financial accounts at banks. These accounts are used for non-business purposes. Most likely, the service at banks for personal accounts is termed as Savings account. This is a type of account held at a bank where a customer can accumulate extra cash, earn interest on it and access it when required. It is the most common type of banking means used by a customer and one of the safest mode to ensure that they can have secured access to hard earned money when in need. A customer can deposit funds into the savings account either by cash or cheques or can transfer money from other accounts using IMPS/NEFT/RTGS/UPI methods. The earned interest using such deposits are credited into the customer’s account on a quarterly basis.
Interest rates offered on these accounts varies from bank to bank and usually ranges from 3.5% to 7%. Withdrawals from these accounts can be done either by visiting the bank branch and cashing a cheque/withdrawal form drawn on the account or at an ATM by using a debit card linked to the account. Customers are also required to maintain an average minimum balance for the quarter or month according to the rules and regulations of the bank. Nonetheless, banks also offer zero balance accounts where the customers do not have to maintain a minimum balance.
Features and Benefits of Personal Account
Features of savings account vary according to the type of account chosen. Some of the common features for understanding the benefits of savings account are listed below:
- The interest rates range from 3.5% to 7% per annum
- Fund transfers easy through IMPS/NEFT/RTGS/UPI facilities
- The bank branches and ATMs are easily accessible to the customers
- Personalised cheques books are issued for enhanced security
- Several offers and discounts on debit
- For quick check of balance and bill payments internet banking and phone banking facilities are available
- There is no limit on the amount deposited
Types of Personal Account
Personal account also known as savings account are classified into different types based on the work domains and age groups of the customers. According to the eligibility and the specific requirements, customers can open any of the savings account mentioned below. The benefits and features of every account differ from bank to bank. However, based on the personal requirements customers have to choose the appropriate option. The common types of account available are:
Zero Balance Savings Account:
In this type of account, the banks offer their customers to operate their account without the strings of maintaining any minimum balance. Applicants can open this type of account online using the Aadhaar based eKYC and utilise the benefits related to the account.
Regular/Basic Savings Account:
These accounts offers the minimum facilities and basic interest rates for its services. Customers have to ensure that they maintain the minimum balance issued according to the bank rules so that they do not incur extra charges.
These accounts can only be opened by the salaried individuals where their monthly salary is directly deposited by the companies. These are a zero-balance savings account where the customers do not need to maintain a minimum balance. If the monthly salary is not credited into this account for 2 to 3 months, it is automatically converted to regular savings account with minimum balance requirements.
Eligibility Criteria of Personal Account
There is minimal eligibility requirement for openings a savings account. These criteria might vary from bank to bank. Applying for a savings account also does not require applicants to fulfill any income or employment criteria. Some of the common requirements are listed below:
- Applicants can be an Indian citizen, Non-Resident Indian and also foreign nationals
- They should be over 18 years of age. However, accounts for minors are also available which are opened by their parents/guardians
Documents Required to Open Personal Account
Nowadays, online savings account opening is an easy way to create an account without any difficulty. An applicant need to submit the following documents at the bank for opening a savings account or for eKYC:
Aadhaar card: It has now become mandatory to submit the aadhaar card number for opening an account
PAN card: These are also mandatory to submit as this can be a utilised as a proof of signature
ID and residence proof: Other ID proof that can be submitted in the bank are Passport, pan card, driving licence, voter ID card, etc.
Address proof: For address proofs bank statement, rent agreement, voter ID card, ration card, passport, driving licence, telephone/electricity/water bills can be used
Photographs: A color passport sized photograph of the applicant is also required
Personal Account Frequently Asked Questions (FAQs)
Your age and your income are the primary criteria for the bank to decide your credit eligibility. For instance, a bank would be more willing to a younger person, earning a stable monthly salary. Such profiles have lower risk exposure.
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