Mrs.Geetha Dasaraty is a commerce graduate with a Masters in Business Administration specialising in finance. Her stint with a Coimbatore based company and later with a consulting firm in Chennai has provided her with a decade of experience in project finance and appraisals, accounting and tax laws. She is a freelance writer and money matters are her forte. She is currently pursuing her final course in Company Secretaryship and is doing a course on Vaishnavism. She has a passion for literature and Carnatic music. She is also a violinist.

While selecting a bank, keep in mind the fact that it is a long- term decision. Once you choose a bank, you will generally be reluctant to switch banks mainly due to the inconveniences involved. Hence extra care has to be taken while selecting a bank. Go in for a bank which offers competitive rates, in addition to offering convenient hours of service and quality service. In this age of electronic transactions, your bank should be able to give you a quick credit on your deposit. Also check whether the bank offers extra services free of charge to regular customers.

Savings Bank Account
Who can open an account?
A savings bank account can be opened by any of the following persons:

• An individual in his or her name.
• By more than one individual (but not more than four) jointly, operated by and/or payable to one or more of them.
• A guardian on behalf of a minor by stating the date of birth of the minor.
• A literate minor himself for reasonable amounts without chequebook facility provided he has attained the age of 14 years and produces proof of birth.
• A school going minor student, above the age of 12 years, can open an account with branches/extension counters situated in the campus of educational institutions in which he or she is studying, on giving a declaration and a no objection letter from a natural guardian .An account opened in this manner requires an introduction from the head of the institution where the student is studying.
• Clubs, associations, charitable and religious institutions, subject to the directives of the Reserve Bank of India. All the rules should be submitted to the bank at the time of opening the account.

Opening of an account

• An application to open a savings bank account should be made in the form prescribed by the banks.
• A proper introduction by either a person having an account in the bank or by any other person known to the banker is essential while opening an account.
• The bank will require two passport photographs, as well as proof of residence in the form of a ration card, passport or driving license.
• An account can be opened with an initial deposit of Rs.500 in cash, where chequebook facility is required, and this balance has to be maintained to keep the account running.
• Where cheque book facility is not required, an account can be opened with an initial deposit of Rs. 100 and such minimum is always required.
• Where the minimum balance is not maintained, service charges will be levied as per each bank's rules.
• The minimum amount that can be deposited or withdrawn in cash in an account is Rs.10.
• Withdrawals can be made by cheques or through withdrawal slips.
• Generally such withdrawals should not exceed fifty per half year.
• Cheques, dividend warrants, pay and pension bills drawn in favour of the account holder will be collected through their account against the payment of collection charges.
• The proceeds will be credited to the account on realisation.

Other Rules

• On opening an account the bank issues a pass book which shows the depositors account number, name, address and nomination particulars.
• The passbook should be updated regularly.
• The interest will be calculated for each month on the lowest balance at the credit of an account between the 10th and the last day of the month.
• Where a cheque is dishonoured for want of funds, an amount will be charged and debited to the account.
• An account can be closed by giving an application in writing.
• An account can also be transferred to another branch of the same bank.

Current account

• Just as in savings account, application to open a current account should be made in the prescribed and all other rules regarding opening an account apply.
• The same rules as in savings account apply relating to the passbook.
• No rate of interest will be allowed on current account.
• It is the duty of the account holder to see that the cheques issued are not dishonoured for want of funds.
• The same rules as in the case of savings bank apply in the case of closure of accounts.

Fixed Deposits

• The same rules as the above apply in the case of opening a deposit.
• A term deposit can be opened in the name of an individual or by more than one but not more than four individuals jointly by a guardian on behalf of a minor, by HUF's, by a company, partnership or any other association.
• The rate of interest will be at the rate prevailing on the date of acceptance or renewal.
• The interest is payable monthly, quarterly or half yearly, as desired by the depositor.
• Deposit receipts are issued incorporating all the details of name, address, rate of interest, due date, period of the deposit and the name of the nominee.
• The depositor shall, at the time of making the deposit state the period for which it is made, subject to a maximum of 10 years. The period of the deposit cannot be less than 15 days.
• The deposit should be made in multiples of 100 and the minimum amount is generally Rs.1000.
• While getting the payment or for renewal of deposit, the original deposit receipt has to be surrendered, duly discharged.
• Usually, the deposit amount will be credited to the depositor's account, but it can also be paid in cash. Generally, amounts more than Rs.20,000 will not be paid to a single depositor, in cash.
• Foreclosure of deposits will be considered at the bank's discretion.
• Deposits may be renewed by the depositor.
• Nomination of the deposit can be made in the name of an individual only.
• A deposit receipt is not transferable and hence no endorsements can be made.
• Generally, a deposit cannot be transferred from one branch to another.
• Loans or advances are given by banks against such deposits. The rate of interest will be at the rates prescribed by the banker.