Question 1

1. Is there a minimum opening balance for a savings account?

Bhoobala Krishna · Accepted Answer

The minimum opening balance for a savings account differs from bank to bank and depends on the features and services one would like to avail at the time of opening an account. It  ranges between Rs.0 and Rs.25,000 for regular customers.

Question 2

2. What are the charges levied on my account if the required minimum monthly balance is not maintained?

Bhoobala Krishna · Accepted Answer

All banks require customers to maintain a minimum average balance. This amount varies from bank to bank and the penalty for not maintaining the minimum average balance depends on the bank. The charges could vary from Rs.5 to Rs.500.

Question 3

3. What are the charges for transacting at a non-home bank branch?

Bhoobala Krishna · Accepted Answer

Branch other than the branch where one opened their account is non-home branch. Most transactions can be carried out at non-home branch as well but some like locker facility transactions, extension of PPF account after completion of 15 years etc can only be performed at home branch. Charges for various transactions at non home branch differ from bank to bank

Question 4

4. Can I use my ATM cum Debit card for international purchases?

Bhoobala Krishna · Accepted Answer

Yes. Most ATM cum Debit cards can be used abroad.

Question 5

5. Are there any charges for cheque books?

Bhoobala Krishna · Accepted Answer

Most banks provide you with one free cheque book of 20 leaves every quarter. Beyond this most banks charge @ Rs.50 for a 20 leaf cheque book. The charges differ from bank to bank.

Question 6

6. What is Positive Pay and how does it work?

admin · Accepted Answer

Positive Pay system is a measure by the RBI to prevent frauds in the form of tampering or changes made in the cheque. The drawer of the cheque needs to reconfirm key details of the cheque which are then cross verified at the time when the cheque is presented for payment.
If the details on cheque match with the details provided by the drawer then the cheque is cleared, else the cheque is returned.

Question 7

7. What is Average Balance?

admin · Accepted Answer

Average balance is the average amount that should be present in the account over a period of time. There are three types of balances – average monthly balance, average quarterly balance and average half yearly balance

Question 8

8. Is PAN card required to open a savings account?

admin · Accepted Answer

We can open a basic savings or small savings bank account without PAN Card and convert it into a regular account by submitting the PAN Card later.

Question 9

9. How to check the account balance in Savings account?

admin · Accepted Answer

Account balance can be checked through net banking, ATM, missed call, SMS, bank statement.

Question 10

10. How can I update my mobile number?

admin · Accepted Answer

The mobile number can be updated by visiting a bank branch, using internet banking, and writing a letter to the bank manager.

Question 11

11. What are the documents required to open a savings account?

admin · Accepted Answer

To open a savings account identification proof, address proof, account opening form and passport sized photographs are required.

Question 12

12. Do I need to link the Aadhaar card with the Savings Account?

admin · Accepted Answer

It is mandatory to link Aadhaar card with savings account.

Question 13

13. Can an NRI open a Savings Account?

admin · Accepted Answer

No, an NRI cannot open a savings account in India in their name. They can convert their existing savings account to a Non Resident External (NRE) or Non Resident Ordinary (NRO) account.

Question 14

14. What are kids Savings Account?

admin · Accepted Answer

A kid’s saving account is a type of savings account for children under eighteen years of age. The account is usually opened jointly with a parent or guardian and is designed to help children learn how to save and manage money.

Question 15

1. What are the different ways I can transfer money from one savings account to another?

Bhoobala Krishna · Accepted Answer

For transfer of money from one savings bank account to another in India, you can do any of the following:
• Cash/Cheque Deposit • NEFT/RTGS Transfer • IMPS – Interbank Mobile Payment Services

Question 16

2. What is NEFT Transfer?

Bhoobala Krishna · Accepted Answer

NEFT or National Electronics Funds Transfer is a method of sending money from one bank account in India to another. The details required to complete this transfer include the beneficiary name, beneficiary account number and the bank IFSC (Indian Financial System Code). There is no minimum or maximum limit in NEFT and the charges for the same are NIL from 1st July 2019.

Question 17

3. What is RTGS Transfer?

Bhoobala Krishna · Accepted Answer

RTGS or Real Time Gross Settlement is very similar to NEFT and it requires similar data to complete the transfer and similar operational hours. RTGS transactions are settled on a real time basis unlike NEFT which is bone batch wise every 30 minutes. Also, the minimum amount for RTGS is Rs. 2 lakhs.

Question 18

4. What is IMPS?

Bhoobala Krishna · Accepted Answer

IMPS or Immediate Payment Service is a method of transferring money from one bank account to another. There is no need to add all details and add a beneficiary to transfer money like in NEFT.  A user’s MMID (Mobile Money Identifier) is sufficient to make transfer. MMID is a 7 digit unique identification number issued by the bank on registration and can be used to make transfers using the registered mobile number. There is no minimum amount but the maximum amount that can be transferred through IMPS is Rs 5 lakhs.

Question 19

5. What are the charges for NEFT, RTGS and IMPS transfer?

Bhoobala Krishna · Accepted Answer

Charges for NEFT – NIL
Charges for RTGS – NIL
Charges for IMPS – NIL

Question 20

1)	How to revive a dormant bank account?

Bhoobala Krishna · Accepted Answer

If there are no transactions in a savings account for 2 years or more, then it is categorized as dormant or inoperative.

To revive a dormant account, account holder needs to personally visit the branch along with the passbook for savings account and cheque book in case of current accounts and state the reason for not operating the account in a letter.

Copy of ID proof, address proof and 2 colour passport size photographs need to be provided for reactivation of account.

Question 21

1)What is a supplementary locker agreement?

Bhoobala Krishna · Accepted Answer

As per RBI guidelines, all banks need to adopt new locker agreement and renew the existing locker customers.

Model supplementary locker agreement needs to be used where the locker agreement based on the Model locker agreement is already obtained.

Question 22

2)	What can’t I keep in the bank locker?

Bhoobala Krishna · Accepted Answer

Bank lockers can not be used to store the following items:

Cash or currency
Arms, weapons, explosives, drugs or any contraband material
Any perishable, radioactive or illegal material
Any material that can create any hazard or nuisance to the bank or to any of its customers

Question 23

3)	What will the bank pay in case of fire or theft or building damage?

Bhoobala Krishna · Accepted Answer

In case of incidents like fire, theft, robbery, building damage etc, banks are liable to pay an amount equal to hundred times the prevailing annual rent of the safe deposit locker.

This is irrespective of the amount kept in the locker.

Question 24

1)	What to do if banking transactions fail?

Bhoobala Krishna · Accepted Answer

Many a times, while using digital modes of payments, many errors occur like amount getting debited twice, credit/ debit cards not getting accepted, wrong amount entered, etc.

In all such cases where transactions failed, these failed transactions must be reversed within the stipulated amount of time by the bank/ wallet/ credit card. In case if not reversed within stipulated timeframe, then customer needs to follow up with the bank/ credit card company.

Question 25

2)	What are the types of banking cyberfrauds?

Bhoobala Krishna · Accepted Answer

There are various types of cyberfrauds against which one must be careful. They are credit card frauds, e-mail phishing, password being used, etc.

Question 26

3)	How can digital payments be kept safe from fraudsters?

Bhoobala Krishna · Accepted Answer

To protect against all such frauds, one must keep credit card pin, passwords, login credentials, etc private and not be stored on any website.
One must never click on links from unknown mail ids or websites
Set up 2 or multi factor authentication
Do not use a public wifi for accessing any confidential information.

Question 27

1. Who is eligible to apply for a fixed deposit account?

admin · Accepted Answer

Any individual or institution is eligible to apply for the account.

Question 28

2. How do I apply for a Fixed Deposit?

admin · Accepted Answer

A Fixed Deposit can be opened at any bank or post office. Some banks may also insist that you maintain a savings account with them to operate a FD account.

Question 29

3. Is there a minimum amount that can be deposited into a fixed deposit account?

admin · Accepted Answer

The minimum deposit amount required for the FD account is Rs 1,000. There is no fixed multiple or upper limit.

Question 30

4. What is the range of tenure for which I can open an FD account?

admin · Accepted Answer

You can deposit money for a period as short 15 days to as long as 10 years.

Question 31

5. Do senior citizens get any extra benefit on the fixed deposits (FD)?

admin · Accepted Answer

Yes, senior citizens get higher interest rates on their FDs. Typically, senior citizens get 0.5% more.

Question 32

6. Do I have to pay tax deducted at source (TDS) for FDs?

admin · Accepted Answer

Tax is deducted at source on the interest accrued on FDs as applicable, as per the Income Tax Act, 1961. TDS is deducted @ 10% if the interest is greater than Rs.10,000 in a year. For senior citizens, the limit is Rs.50,000 in a year.

Question 33

7. What if TDS has not been deducted by the bank?

admin · Accepted Answer

Banks are supposed to deduct Tax At Source on interest income more than Rs 10,000/- in a financial year. If bank does not deduct TDS, then the entire interest income from FD needs to be added to total income and taxed accordingly.

Question 34

8. Can I redeem my FD before the maturity?

admin · Accepted Answer

Yes, FD can be closed before maturity. There would be a penalty for the same. Penalty is generally between 0.5% to 1% of the interest rates and varies from bank to bank.

Question 35

9. What is Recurring Deposit?

admin · Accepted Answer

A recurring deposit is a deposit where money can be invested on a regular basis in a Term deposit. The advantage of the recurring deposit is that it allows you to invest small amounts regularly and get similar interest rates like a Fixed Deposit.

The minimum amount in a recurring deposit can be as low as Rs. 500/- per month.

TDS is applicable on recurring deposits and are similar to fixed deposits.

Partial withdrawal of RD is not allowed. Premature mature withdrawal is allowed with 1% penalty.

Question 36

10. Are bank perpetual bonds like fixed deposits?

admin · Accepted Answer

Perpetual bonds yield a little higher interest rate than Fixed Deposits but come with certain risks like

Default risk (chances of the bank not paying up the interest or choose to write down the value of these bonds)
High concentration risk as the ticket size is big (Rs 10 lakhs or more)
Repayment date risk – Bank is not bound to repay after the said tenure. Banks are not bound to repay the principal, they can choose to not repay the principal and just keep repaying interest.
Interest rate risk: When interest rates rise, bond prices fall, especially for longer maturity bonds like perpetual bonds

Question 37

1. What is Deposit Insurance on FD?

admin · Accepted Answer

Deposit insurance is a protection cover for deposit holders in a bank in case a bank fails and does not have money to pay its depositors.
This insurance is provided by Deposit Insurance and Credit Guarantee Corporation (DICGC)
DICGC insures all bank deposits like savings and current account, fixed and recurring deposits
In case a bank liquidates, every depositor is entitled to a repayment of his/her deposits with the bank up to a monetary ceiling of Rs 5 lakhs from DICGC

Question 38

2. I have multiple FD’s in PSU bank in the name of my wife, daughter and myself. Is the Rs 5 lakhs insurance per deposit or per customer?

admin · Accepted Answer

The insurance limit of ₹5 lakhs is applicable per customer per bank (and not per deposit per branch). Here, the term ‘customer’ refers to the depositor who is named first. Different combinations of holders may exist, but such combinations will be disregarded, as long as the first holder is the same.

Question 39

3. How can I guage a bank’s financial health?

admin · Accepted Answer

Some ratios to guage a bank’s financial health which are easily available on the quarterly/ half yearly reports uploaded on the bank’s website are:

Capital Adequacy Ratio: This ration shows the buffer a bank has against bad loans. When a default happens, losses are absorbed by the bank’s capital rather than by depositors money. A Capital Adequacy ratio of 12% and above shows a healthy bank.

Gross Non Performing Asset Ratio (NPA): This ratio shows the proportion of the bank’s loans that have gone bad. NPA below 5% indicates a healthy bank.

Market Cap: It is the total value of all the shares of the bank and it changes on a daily basis. Decline in market cap indicates that the financial health of the bank may be on the decline.

Question 40

1. How does one get hold of unclaimed bank deposits

admin · Accepted Answer

If an account has remained inoperative for more than 2 years, then it is termed as dormant or inoperative account. Bank must contact the account holders and inform them on dormancy. Details of all unclaimed money will be available on the bank’s website. The depositor or claimant can visit the bank branch with a duly filled claims form, deposit receipts and KYC documents to claim the money.

In case a legal heir/ nominee is claiming the amount, then they need to submit deposit receipts, death certificate of account holder and their own KYC documents to claim the unclaimed amount.

Question 41

1. I have sold almost all shares in my demat account and want to close the account. I only have few shares of some companies which are not listed in the market anymore. How do I close my demat account?

admin · Accepted Answer

You will not be allowed to close the demat account unless the balance is NIL. Hence the options available are:

a) Rematerialise all existing balance by converting the remaining securities from electronic form back into paper form. Approach the bank with a rematerialisation request for each company. The form will be verified and sent to the depository and then to the issuer/ R& T agent. They will in turn contact the companies and send physical certificates if they could contact company.

b) If they are not able to contact the company, then you may transfer the balance of your demat account to another account of your family member.

Question 42

2. Are there any annual maintenance charges on my demat account?

admin · Accepted Answer

Annual maintenance charges varies from one demat to another demat account. Typically, charges are around Rs.200 to Rs.1000 per year. There are a few demat accounts who do provide zero maintenance costs

Question 43

1. Can I open both Sukanya Samriddhi scheme and PPF also in the name of my girl child?

admin · Accepted Answer

Yes, you can invest in both Sukanya Samriddhi and PPF in the name of your child. However you will get tax benefit of only Rs 1.5 lakhs totally under all instruments eligible for Sec 80 C deductions.

Question 44

2. What happens to SSY account on death of guardian who pays for the girl child?

admin · Accepted Answer

On death on guardian in Sukanya Samriddhi Yojana, the account is either closed and the proceeds are given to the family or girl child.

Or other option is the scheme can be continued with the deposited amount until the maturity period and the deposited amount continues to earn interest till the girl child attains the age of 21 years.

Question 45

3. How to reactivate an inactive SSY account?

admin · Accepted Answer

A SSY account which has been inactive for more than 3 years can not be revived. SSY account which has been inactive for less than 3 years can be revived by:

Going to the post office or bank branch where the SSY account was opened
Submit a written request with details of account like account number, account holder’s name and reason for default

Pay the necessary penalty and arrears. Penalty is Rs 50 for every year of default and arrears include minimum deposit amount, i.e Rs 250/- for every year of default

Question 46

1. What is Senior Citizens Savings Scheme?

admin · Accepted Answer

Senior Citizen’s Savings Scheme is a retirement benefit scheme. Indian senior citizens above the age of 60 can invest a lumpsum amount in this scheme either single or jointly with spouse.

Question 47

2. What is the maturity period for SCSS?

admin · Accepted Answer

Yes, SCSS comes with a 5 year maturity period. The account can be extended for a period of 3 years within one year of maturity of the account.

Question 48

3. Is premature withdrawal from SCSS allowed?

admin · Accepted Answer

Yes, one can withdraw from SCSS before the scheme matures as well.

Question 49

4. Can one invest in SCSS every month?

admin · Accepted Answer

No, one can only invest a one time lumpsum amount in SCSS.

Question 50

5. Are there any tax benefits for investing in SCSS?

admin · Accepted Answer

Yes, investments made into SCSS qualify for a tax benefit of up to Rs 1.5 lakhs under Sec 80C.

Question 51

6. Can joint accounts be opened in SCSS?

admin · Accepted Answer

Yes, both single and joint accounts can be opened under SCSS.

Question 52

7. What is the minimum and maximum amount that can be invested in SCSS?

admin · Accepted Answer

Minimum investment amount – Rs 1000/-

Maximum investment amount – Rs 30 lakhs

Question 53

8. Is the maturity amount tax free?

admin · Accepted Answer

No, the maturity amount received from NSC is completely taxable as per tax slab.

Question 54

1. What is National Savings Certificate?

admin · Accepted Answer

National Savings Certificate are savings bonds issued under the Indian Post Office’s Small Savings Scheme.

Question 55

2. Is there a lock-in period for NSC?

admin · Accepted Answer

Yes, NSC comes with a 5 year maturity/ lock-in period.

Question 56

3. Can one invest in NSC every month?

admin · Accepted Answer

Yes, one can invest either lumpsum amount or Systematic investments every month into NSC.

Question 57

4. Are there any tax benefits for investing in NSC?

admin · Accepted Answer

Yes, investments made into NSC qualify for a tax benefit of up to Rs 1.5 lakhs under Sec 80C.

Question 58

5. Can joint accounts be opened in NSC?

admin · Accepted Answer

Yes, both single and joint accounts can be opened under NSC.

Question 59

6. What is the minimum and maximum amount that can be invested in NSC?

admin · Accepted Answer

Minimum investment amount – Rs 1000/-

Maximum investment amount – No maximum amount

Question 60

7. Is the maturity amount tax free?

admin · Accepted Answer

No, the maturity amount received from NSC is completely taxable as per tax slab

ITR Form	Base Rate **	Services Offered
ITR 1	Rs. 750+taxes	Only for ITR 1 filing, Single Form 16 and only Salary Income
ITR 1	Rs. 1000+taxes	Multiple form 16, interest income from FD/Savings ac & salary income
ITR 2	Rs. 3500+taxes	Multiple form 16, Multiple house property, Capital gains from Indian stocks, house property, 1 Demat account, RSU Disclosure
ITR 2	Rs. 5000+taxes	Multiple form 16, Multiple house property, Capital gains from Indian stocks, house property, multiple Demat accounts – upto 5, sale of RSU
ITR 2	Rs. 7500+taxes	Multiple form 16, Multiple house property, Capital gains from Indian stocks, house property, multiple Demat accounts – upto 5,sale of RSU, filing of form 67, dividends from foreign stocks
ITR 2	Cost will be discussed based on complexity	Other than the above cases
ITR 3	Rs. 12,500	F&O Income and RSU
ITR 3	Cost will be discussed based on complexity	If Audit required

Saving Account

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