A bank account is a virtual vault created by the bank on the request of an individual, in which the latter can safely and securely store a virtual representation of his / her real wealth.
Below is a list of some of the categories of savings accounts that are available from most banks:
In order to set up and operate a savings bank account from any of the major banks in India, applicants must meet the following eligibility criteria. Please note that this is a list of general requirements and criteria followed by most banks, but your specific bank may ask you for a more authentication or have different parameters:
APY refers to how much interest you earn on a deposit during a year, taking into account the effect of compounding interest. This is different from the interest rate, which does not take compounding into account. The higher the APY, the more you can expect to earn on your deposit. But make sure the APY you've been quoted doesn't come with other conditions, like fees or other requirements that don’t work for you. Some banks offer introductory APYs that seem attractive until you notice that they won't stay competitive for long. Online banks tend to offer more competitive APYs than traditional brick-and-mortar banks.
Compound interest is interest that's paid on both the initial deposit and also on any interest earned. The more frequently interest compounds on an account, the faster your balance grows.
Usually, savings accounts are considered low-risk, but you want to be sure any account you consider is at an FDIC-member bank. Deposits in FDIC-member banks are insured by the Federal Deposit Insurance Corporation up to the maximum amount allowed by law.
Reliable and helpful customer service and an easy-to-use website are important factors in choosing the best savings account. You’ll want to be able to quickly find out information on bank products and have convenient access to your account.