Passive vs. Active Savings
Money in regular Savings Bank accounts fetches very low rates of interest, hence can be termed passive savings. Do not keep too much money in savings account!
Instead, invest in Recurring/ Fixed Deposits of banks that fetch better returns.
Other good practices:
- Taking a passbook/statement of account & checking entries periodically.
- Keeping cheque-book (if taken) in safe custody.
- Not sharing Internet Banking (if availed) ID & password with anyone.
- Not sharing debit card (if obtained) PIN with anyone.
- Not sharing OTPs (one time passwords) received for carrying out on-line transactions with anyone.
What is nomination and why nominate?
A nominee is the person who is entitled to receive the money lying in the bank account (as a trustee of the legal heir/s of the deceased depositor) after the death of the depositor in single account and death of all depositors in case of a joint account. Nomination helps in quick settlement of claims and reduces hardship for surviving family members.
” Always fill up the Nomination Form when you open a bank deposit account.”
Premature Withdrawal
Fixed Deposits are normally for a particular / specified period of time. If you want to withdraw the amount before the end of the period, then the bank will charge a penalty for pre-mature withdrawal.
In the event of death of the depositor, premature withdrawal would not attract any penal charge.
Disclaimer : This message is presented as a reading and teaching material with a sincere purpose of making the reader financially literate. It is not intended to influence the reader in making a decision in relation to any particular financial products or services.
Printed by Reserve Bank of India, Financial Inclusion & Development Department.
