Saving bank account or savings account is very important for everyone. With its help, it helps in doing all kinds of financial transactions. If it is not there then it becomes difficult to keep money. Come, let us know some important things about savings bank account here.
1. A savings account is a deposit account. It opens in banks and financial institutions. In this account one can receive his salary or income. It is also used for payment. In this you can hold your money as long as you want.
2. Debit card is given to the savings account holders. With the help of this, they can do different types of transactions. Account holders can also get account statement on regular basis.
3. Depending On The Type Of Account, A Minimum Balance May Be Required. This means that you have to maintain a minimum amount in the account. Failure to do so will result in a penalty.
4. Interest is available on the money deposited in the savings account. The payment can be made on quarterly, half yearly and in some cases on yearly basis. The interest rates of savings accounts are usually lower than that of fixed deposits.
5. Interest earned on savings account is taxed at marginal rate. Deduction up to Rs 10,000 is available under section 80TTA. At the same time, senior citizens get a deduction of up to Rs 50,000 under section 80TTB. This means that tax exemption can be availed in such cases.