If you are looking to manage your finances with ease, simply open a savings account. You can seamlessly transfer funds, make digital payments, automate transactions, save for various goals, and more. Having a savings account is like having a multi-functional tool in your financial toolkit. But the cherry on top? Besides all these benefits, the balance in your savings account earns interest. But have you ever wondered how this interest works? How much will you earn, and what decides the rate of your interest earnings? Let’s answer all these questions in detail below.

So, how does a savings account earn interest?

Savings accounts do not have a specific time restriction or maturity period. As long as you maintain funds in the account, you will earn interest. The interest is calculated on the basis of your daily closing balance and is credited to your account at quarterly intervals.

The formula to calculate the savings account interest rate is:

Monthly interest earnings = Daily Balance * (Number of days) * Interest / (Days in a year)

Let’s say the daily amount is ₹3 lakh, and the interest rate on the particular savings account is 4% per year; the calculation will be as follows:

• Daily balance: ₹3 lakhs
• Number of days: 30
• Interest: 4%
• Days in the year: 365

3 lakhs * 30 * (4/100) / 365 = approximately ₹986.30 per month.

Tips to maximise your interest earnings

Here are some tips to increase your savings account interest smartly:

Choose the right banking partner

Select a bank that offers the best interest rate on savings accounts to help you grow your funds significantly. Also evaluate useful account features, minimum balance requirements, withdrawal limits, and accessibility to check overall benefits.

At IndusInd Bank, you get competitive savings account interest rates as well as premium banking services customised as per your needs. The most convenient part? You enjoy a 100% online bank account opening process and earn interest on your account from day one.

Earn FD-like interest through auto-sweep facility

The Indus Multiplier Max Savings Account by IndusInd Bank comes with a ‘smart sweep’ feature that lets you earn more on your funds. When your savings exceed ₹20,000, the surplus funds are automatically transferred into a Fixed Deposit (FD) in multiples of ₹1,000. This process allows you to earn higher interest, typical of fixed deposits while maintaining the liquidity of savings accounts.

If your account balance drops below the set minimum threshold, funds are transferred back into your savings account from the linked FD. No premature closure penalty applies here.

Take advantage of promotions

There are often promotions from time to time to attract new customers. These can include special offers, sign-up bonuses, or higher interest rates. It’s wise to stay alert for such opportunities.

Just be sure to review the terms and conditions so that the promotion aligns with your savings goals. These perks can give a short-term yet significant boost to your savings and understanding their details is important to maximise their value.

Get a digital savings account with IndusInd Bank

Each type of savings account has different interest rates and terms, hence make sure to compare all options first to find the one that fits your banking needs perfectly.

You can choose Indus Delite Savings Account to get a premium and hassle-free banking experience. Get the best interest rates, along with other exclusive features like a 100% paperless process, delightful deals, reward points, zero balance account, insurance cover, and minimum fees.

So, don’t delay and grab the opportunity to enjoy seamless banking with personalised benefits. Apply for an IndusInd Bank Savings Account today!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

A savings account is an essential tool for managing your personal finances in today’s time. The best part? It has become easier to open a savings account instantly. You don’t have to keep going to the bank, stand in long lines, or fill out lots of forms. Today, banks have aligned themselves with the digital age, offering you the flexibility to start your banking journey from their branch or entirely online. The choice is yours.

But before you start, there is something crucial you need to know: the documents required. Whether you choose the offline route or decide to go digital, certain key documents are needed to initiate the account opening process. These documents are necessary to verify your identity, check your security, and comply with legal requirements.

A handy list of documents required for savings accounts

Here is the checklist highlighting the necessary documents required for opening bank account in India.-

Identification Proof

Most banks usually accept identity proof documents such as:

• Aadhaar card
• Passport
• PAN card
• Voter ID card
• Driving licence
• Any government issued/ defence issued ID card
• Photo ID card issued by a post office

Address Proof

You can provide any of the following as your address proof:

• Passport
• Driving licence
• Salary slip
• Income tax assessment order
• Latest electricity bills
• Latest bank statement
• Ration card
• Voter ID card
• Letter from employer/public authority (if validated by bank)

Remember, the document should have your name and address clearly mentioned.

PAN Card

In India, a PAN (Permanent Account Number) card is crucial for financial transactions. Banks use this to track financial activities under your name. It helps in tax-related matters, too.

Photographs

Before you open a savings bank account online or offline, make sure to keep a few copies of your latest photographs handy. These photographs go on your bank records.

Officially Valid Documents (OVDs) for KYC Purposes

Know Your Customer (KYC) norms apply to all individuals who want to open a savings account. The acceptable OVD for KYC purposes are:

• Driving Licence
• Passport
• PAN card
• Voter ID Card
• Copy of Aadhaar card or Aadhaar letter
• Job card issued by NREGA duly signed by a State Government officer
• Letter issued by the National Population Register. It must have name and address details.

To further simplify the procedure of opening a saving bank account, the information containing personal details like name, address, age, gender, etc., and photographs obtained through the e-KYC process provided by UIDAI can also be treated as an ‘Officially Valid Document’.

Choose IndusInd Bank Savings Account: Easy paperwork and fast approval

IndusInd Bank offers a seamless procedure to open a savings account online, allowing for quick setup in just a few minutes. The best part is that the entire account opening process is completely paperless. So, you can skip the pile of documents and lengthy paperwork – you just need your PAN and Aadhaar cards.

The facility of video KYC (Know Your Customer) has simplified the process even more. Now you can complete the verification from anywhere at any time. No more bank visits or interruptions to your schedule. The account opening process is not only paperless, but also contactless and hassle-free.
Just go online and choose from an exclusive range of accounts designed as per your savings needs. For instance:

• Indus Diva Women’s Savings Account is perfect for new-age females seeking additional perks like off on lockers, free movie ticket offers, and free family accounts.
• Senior Citizens Accounts are specifically designed for the older generation, offering higher savings account interest rates and special privileges.
• Kids savings accounts are customised for minors and help them develop smart saving habits from a young age. They come with useful features like customised debit cards, personalised cheque books, parental controls and educational initiatives.

With IndusInd Bank, you are not just opening an account, you are getting a banking experience that understands and adjusts to your needs. It’s a solution that aligns perfectly with your lifestyle and is accessible with just a few clicks.

Apply for an IndusInd Bank Savings Account now to enjoy financial inclusivity and customisation.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

It’s a digital world today where technology touches almost every part of our lives. People buy things online, chat with friends across oceans, handle office responsibilities and even learn new skills from the screens. You can easily tell that daily routines and habits are influenced by the convenience that technology offers. One task that has highly changed in the digital era is the process of opening a bank account.

People now prefer banking services that are quick, available 24/7, and fit easily into their digital lifestyle. This trend is why more and more are choosing to open bank accounts online. They expect the same level of convenience and efficiency they get from other online services.

Keep reading to understand the simple process of opening a digital account with IndusInd Bank, showing how online banking is not just meeting but embracing the future of banking.

Steps to open a digital account with IndusInd Bank

The online account opening process of IndusInd Bank is simple and user friendly. You don’t have to stress about repeated bank visits during work hours, lots of paperwork, or tiring processes. Just a few taps and you can open an account from your home or any other location. The steps are –

• Choose the type of account: First, decide the type of savings account you want to open. You can select from the kids’ savings account, senior citizens account, joint savings account, zero balance savings account, and so on.
• Submit the form: The next step is completing an application form. Provide your personal information like name, address, mobile number, date of birth, and other details.
• Complete video KYC: The video KYC process helps you with a secure and personalised onboarding experience. To start this step, simply schedule your video KYC with a bank representative. Choose a time that fits your schedule and a team will be available to help you. Make sure you have your Aadhaar and PAN cards ready. Also keep a pen and a blank paper in case you need to provide signatures.
• Fund your account: Once your bank account is set up, add funds.

And that’s it. You can open a savings account online with IndusInd Bank that easily. No more hassle or lengthy documentation. Just a quick process and peace of mind!

Spend, save, invest, borrow, and more | Digital savings account perks

Here are some exclusive benefits common to all IndusInd Bank’s digital savings accounts –

• Complete the entire online bank account opening process from your phone or laptop at any time.
• Customise your bank account number. You can choose your lucky number, birth date, a special date, or be more creative.
• Cashback and discounts on debit card purchases.
• Shop, book cabs, order food, and pay bills within seconds through the mobile banking app. Automate regular payments with the e-mandate facility and manage recurring expenses without worrying about missing deadlines.
• Attractive savings account interest rate of up to 6.75%.
• Enjoy video communication with relationship managers, branch managers, and branch executives. This feature is not only helpful to open a bank account online but also useful for discussing complex issues or getting personalised advice.
• The use of fingerprint scanning through mobile apps ensures high security. It protects your account from unauthorised access.
• Get discounts on locker charges and choose cash withdrawal denominations.
• Receive all the banking notifications and alerts on your WhatsApp.

Click, confirm, connect: The perks of digital accounts

The online saving account opening process is a huge convenience for banks and customers. This evolution reflects the digital-first world, where speed and accessibility are priorities. IndusInd Bank’s digital savings account embraces this innovation. You get a banking experience that’s fast, safe, and available 24/7 at your fingertips. Access best interest rates, minimal paperwork, exciting offers on big brands, and omnipresent banking.

Don’t wait any longer! Open your IndusInd Bank Online Savings Account today! Enjoy an unmatched online banking experience.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

A savings account is your all-time financial partner, which not only helps you manage your daily finances but also offers the dual benefits of security and growth. When opening a savings account, you will often come across the term Average Monthly Balance (AMB). However, don’t be quick to dismiss it as just a banking term. This simple yet significant concept plays a key role in how you manage your savings account.

With that in mind, let’s understand what an average monthly balance is exactly, how it affects your account, and why banks emphasise it. 

Understanding what AMB means in banking

AMB is the minimum average balance you must maintain in your bank account over the specified period. The period is typically a month. Each bank can set its own AMB requirement based on the type of account and the services it offers.

An insufficient AMB may lead to the imposition of certain charges and penalties. These fees also differ from bank to bank, reflecting different policies and AMB requirements. However, some banks offer a grace period, a specific time frame during which you can restore your balance without penalty.

How to calculate the monthly average balance?

Every day, from the first to the last day of the month, the bank records the closing balance in your savings account. After that, they add up the balances and divide the total by the number of days in the month. That’s it.

Here is the formula to calculate AMB:

AMB = Total of Everyday Closing Balance/Total Number of Days

Let’s say you maintained a balance of ₹10,000 for 15 days and ₹15,000 for the remaining 15 days of the month, your AMB would be calculated as follows:

(10,000 x 15 + 15,000 x 15) / 30 = ₹12,500 (approximately)

Note that AMB is specific to each month, and the calculation is done monthly. This differs fromthe Average Quarterly Balance (AQB), where the balance is computed over a quarter (i.e., three months) at a time.

Smart tips to maintain a healthy average monthly balance

From opening a digital to practising smart withdrawals and deposits, the following are some tips to maintain a healthy AMB.

1. Set up automatic transfers: To maintain a sufficient balance in your savings account without any direct involvement, consider arranging an automated monthly transfer from another account. Schedule these right after your payday and opt for an account with low or no minimum balance requirements to facilitate these transfers.

2. Monitor your account regularly: Use mobile banking apps or online banking services for this. They often provide real-time updates on your balance through push notifications and even text messages. This habit helps you react quickly if your balance is nearing the minimum requirement.

3. Use your additional funds wisely: Deposit tax refunds, bonuses, subsidies, or cash gifts into your savings account only. This not only helps you maintain the AMB but also amplifies the interest. After all, the more money you deposit, the more interest you will earn.

4. Smart balance management: You can skilfully manage your AMB. For instance, if you need to maintain an AMB of ₹5,000, you have options. You can either keep a daily closing balance of ₹5,000 or have ₹1,55,000 in your account in just one day for a month that has 31 days. Both scenarios fulfil the requirement equally.

Simplify your savings with IndusInd Bank

From opening a digital or a zero-balance savings account to practising smart withdrawals and deposits, the following are some tips to maintain a healthy AMB.

1. Set up automatic transfers: To maintain a sufficient balance in your savings account without any direct involvement, consider arranging an automated monthly transfer from another account. Schedule these right after your payday and opt for an account with low or no minimum balance requirements to facilitate these transfers.
2. Monitor your account regularly: Use mobile banking apps or online banking services for this. They often provide real-time updates on your balance through push notifications and even text messages. This habit helps you react quickly if your balance is nearing the minimum requirement.
3. Use your additional funds wisely: Deposit tax refunds, bonuses, subsidies, or cash gifts into your savings account only. This not only helps you maintain the AMB but also amplifies the interest. After all, the more money you deposit, the more interest you will earn.
4. Smart balance management: You can skilfully manage your AMB. For instance, if you need to maintain an AMB of ₹5,000, you have options. You can either keep a daily closing balance of ₹5,000 or have ₹1,55,000 in your account in just one day for a month that has 31 days. Both scenarios fulfil the requirement equally.

Simplify your savings with IndusInd Bank

Now that you know how to calculate your monthly average balance, make sure to maintain it to avoid penalties and keep a positive banking relationship.

If maintaining this balance seems like a task, consider the Indus Delite Instant Savings Account. You can open this zero-balance savings account right from your home and enjoy the best services and rewards. Simply fill out an application form, keep your documents needed to open a bank account like Aadhaar and PAN card ready, and complete the video-KYC process. That’s it! Get an opportunity to earn an attractive savings account interest rate from day one, unlock delightful deals like 20% off on Swiggy and Big Basket, enjoy 5% cashback on debit card spends, and even benefit from complimentary insurance cover of ₹1.5 lakh.

Don’t wait anymore! Open an IndusInd Bank Savings Account today.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.