1. A savings account is a deposit account with a bank or financial institution where one can receive income, make payments and hold money
2. One can transact using debit cards, cheques and get an account statement on a regular basis.
3. Based on the type of account that one holds, there may be a minimum balance requirement, failing which a penalty is levied.
4. Money held in savings accounts earns interest which can be paid quarterly or half yearly or annually.
5. The interest earned on a savings account is taxable at the marginal rate with a deduction of Rs 10,000 allowed under section 80TTA and Rs 50,000 for senior citizens under Section 80TTB.
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)