Storing cash is definitely a good habit, which is why savings account has been quite popular among the netizens since years. In fact, savings account is the first interaction with the bank for many. Thus, these bank accounts mark a milestone for the netizens. However, as time changes, so does the banking instruments; and bank accounts are no different.
What is super savings account?
In this fast moving world, people generally lean towards convenient and hassle-free banking experience and this is what super savings account is committed towards. It is a new product introduced by the prominent banks and financial institutions with an objective to offer the flexibility to access savings account. Funds in the super account are invested in Reliance Liquid Fund – Treasury Plan, which have lower to medium risks involved. In addition, an accountholder is liable to yield higher returns of 8.65% (w.e.f. January 2017). This is almost double of what traditional savings account offer.
Liquid fund or money market fund is one of the safest mutual funds with a simple objective of keeping the funds safe, while offering liquidity until better investment options aren’t found. Until then, the funds are invested in safer instruments such as short-term government bonds, treasury bills, and the call money market. These involve very low risk and are highly liquid with a maturity period of 90 days.
Furthermore, super savings account gives you the flexibility to access your funds whenever needed, while in a traditional liquid fund there are some instruments that requires high investments; in fact the accountholders have to wait for at least 24 hours to access the funds.
Benefits of super savings account:
Similar to that of traditional savings account, super savings account too offers certain benefits and privileges.
Higher interest rate – It offers whopping rate of interest at 8.65%, which means accountholders can earn double returns for your idle funds.
Debit card – Get access to your funds on the go with complementary ATM-cum-debit card. This card can also be swiped at any online and offline merchant outlets.
Minimum investment – Potential investors can start with minimum initial investment of Rs.1000 with zero lock-in. Additional investments can be made for minimum of Rs.500.
No hidden charges – The entire process works on a transparent digital platform and thus, the investors don’t have to worry about any hidden charges. While the usual bank accounts levy certain fees and charges, the Super Savings Account eliminates the charges.
Eligibility and process to open super savings account:
Well, any Indian resident can enjoy the benefits of the super bank account as there is no age bar or income criteria to open this account. So, if you wish to open a super savings bank account, keep your documents ready before submitting the application.
An account can be opened through both online and offline process. In offline process, an applicant has to submit the physical KYC documents and submit the application directly to the bank, while in online mode, an applicant can enjoy paperless process. With the benefits of online KYC, applicant can upload the scanned documents online to complete the application process. e-KYC is quite convenient and hassle-free and takes just a few minutes to open savings account.