Savings account

Traditionally, transactions on savings accounts were widely recorded in a passbook, and were sometimes called passbook savings accounts, and bank statements were not provided; however, currently such transactions are commonly recorded electronically and accessible online.

People deposit funds in savings account for a variety of reasons, including a safe place to hold their cash.

Regulation D sets smaller reserve requirements for savings account balances.

In addition, customers can plan withdrawals to avoid fees and earn interest, which contributes to more stable savings account balances on which banks can lend.

The banks also enjoyed the freedom to fix the interest rate on deposits on the lowest credit balance of any one day of each month.

Banks found innovative ways of adding to their income from savings accounts.

Banks have to follow the RBI's know your customer guidelines to allow an individual to open a savings account.