Savings Account FAQs - Answers to Common Bank Account Questions
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Savings Account Frequently Asked Questions


What is Savings Account?

A Savings account is a bank deposit account that offers interest on the balance kept in the account.

It allows you to secure or withdraw money when the need arises. Banks now a days are offering different types of accounts to cater to the needs of various customer segments with specific benefits and offers. From senior citizens to kids, there is a proposition for everyone.

How is the Average Monthly Balance (AMB) requirement calculated for savings account?

Average Monthly Balance is calculated by dividing the sume of all ‘End of Day’ balances in a month by the number of days in that month.

Please refer the following illustration for the calculation of AMB.

Sample Bank Statement:

Sr. no.





Closing balance


January 1st, 2012

Opening Balance



Rs. 10,000/-


January 10th, 2012

ECS Credit-VD


Rs. 10,000/-

Rs. 20,000/-


January 16th, 2012

Cash Withdrawal

Rs. 5,000/-


Rs. 15,000/-


January 25th, 2012

Cheque Deposit- MICR Clearing


Rs. 20,000/-

Rs. 35,000/-


January 28th, 2012

HPCL Petrol Pump POS 43860000000012

Rs. 1,000/-


Rs. 34,000/-


January 30th, 2012

Cash Deposit Mumbai


Rs. 9,000/-

Rs. 43,000/-


January 31st , 2012

Funds Transfer

Rs. 25,000/-


Rs. 18,000/-

AMB Calculation:

Sr. No.

Time Period


Amount (Rs.)


EOD Balance from January 1st, 2012 to January 9th, 2012

Rs. 10,000/- x 9

Rs. 90,000/-


EOD Balance from January 10th, 2012 to January 15th, 2012

Rs. 20,000/- x 6

Rs. 1,20,000/-


EOD Balance from January 16th, 2012 to January 24th, 2012

Rs. 15,000/- x 9

Rs. 1,35,000/-


EOD Balance from January 25th, 2012 to January 27th, 2012

Rs. 35,000/- x 3

Rs. 1,05,000/-


EOD Balance from January 28th, 2012 to January 29th, 2012

Rs. 34,000/- x 2

Rs. 68,000/-


EOD Balance for January 30th, 2012

Rs. 43,000/- x 1

Rs. 43,000/-


EOD Balance for January 31st , 2012

Rs. 18,000/- x 1

Rs. 18,000/-


Total EOD balances for the month January 2012


Rs. 5,79,000/-


Divide by the no. of days in the month




Average Monthly Balance (AMB)


Rs. 18677.42/-

What is the minimum balance for savings account?

The minimum balance requirement or the average monthly balance (AMB) for a savings account varies with the type of Savings Account variant selected by the customer. 

For example the minimum monthly balance for a savings account can range between Rs 10,000 to Rs 50,000 depending upon the savings account type.

What are the various types of Savings accounts?

Banks across the country are offering Savings account catering to the needs of different customer segments. Here are the types of Savings account available for the customers to choose from

Regular Savings Account – This is the basic type of Savings accounts which comes with min balance requirement and daily limits on withdrawals

Women’s Savings Account – Designed specifically to cater to the needs of women, this account offers discounts on various banking products, cashback and other benefits on shopping/transactions. Since it’s a customized version of Regular account, it also has min balance requirement.

Kids’ Savings Account – This account is specifically designed to teach your children the benefits of saving, while also providing a host of privileges across dining, edutainment and shopping on kids’ brands.

Senior Citizen Savings Account – Crafted with utmost care to offer preferred banking services and products to the senior citizens. It comes with offerings such as priority service at branches, home-banking facilities, cashbacks, discounts on locker rentals, overdraft facilities, health care benefits and more

Family Savings Account – This brings the entire family’s banking needs under one account, allowing everyone to avail exclusive family-centric benefits and features, and make the most of their banking experience together

Salary Account – This account provides a plethora of benefits and privileges, all tailored to meet the financial needs of a salaried professional

How is the average monthly balance calculated?

Average monthly balance is the average of all the closing-day balances in a given month.

AMB = (Sum of closing balances of all days)/(number of days in a month)

Can the holding pattern in linked Fixed Deposit and Saving account be different?

Yes, the holding pattern in a linked fixed deposit and a savings account can be different. 

In the case of Activ Money, a feature offered by Kotak Mahindra Bank, a portion of your savings account balance is automatically transferred to a linked fixed deposit account. The holding period for the fixed deposit is typically shorter, and the entire balance in the savings account and ActivMoney FD remains readily accessible. This allows you to earn higher interest rates on the fixed deposit while still having the flexibility to withdraw funds from your savings account when needed.

Is PAN card compulsory to open a savings account?

Pan card is mandatory to open a Savings account if annual income is more than 5L. For cases with income less than 5L, the accounts can be opened with Form 60 as well.

What are the benefits offered by senior citizens savings account?

The Kotak Mahindra Grand (Senior Citizen) Savings Account is crafted with utmost care for the golden years of your life.

Built with offerings such as priority service at branches, home-banking facilities, cashback up to Rs. 4,500 p.a., discounts on locker rentals, overdraft facilities, health care benefits and more, the Grand Saving Account ensures to make life comfortable as soon as you turn 55 years old.

Can I have zero balance in savings account?

Zero balance savings account facility is available only for Salary account holders, general savings accounts have e minimum balance requirement.

What are the different ways I can transfer money from one savings account to another?

Below are the different ways of transferring money from one Savings account to another

  • NEFT
  • RTGS
  • IMPS
  • UPI

How do we add/modify or delete a nominee for my savings account?

You can view/update your Nominee on your account by following steps:

On Mobile Banking

1. Go to Service Request

2. Profile -> Nomination Update

On Net Banking

1. Go to Banking

2. Service Requests > New Service Request

3. Nomination Update

You can also raise a service request to update your nomination in bank account. The request can be raised on the below link using Phone Number & DOB or CRN.

How do I deposit money into my savings account?

Cash/Cheque can be deposited in Savings Account by visiting a bank branch and submit the deposit slip along with the Cash or Cheque.

You can also deposit Cash or cheque into your Savings account through an ATM

When does a savings account become dormant?

A Savings Account is treated as dormant if there are no transactions in the account for over a period of two years

Can I open a DEMAT Account with my Savings Account?

Yes. Kotak offers a 3-in-1 account called 'Trinity''. It includes : Kotak Bank Savings Account + Kotak Securities Demat Account + Kotak Securities Trading Account

At what rate will I earn interest on the balance in my Savings Account?

Prevailing Savings account interest rate on the daily balances is as follows : 

Click here to check the prevailing Saving account interest rate on the daily balances is as follows

When is the interest earned on my saving account deposited/credited into my account?

Interest will be credited in the savings account on quarterly basis.

Here are some of the points you need to consider while choosing a Savings Bank account

Here are some of the points you need to consider while choosing a Savings Bank account

  • Minimum balance requirement
  • Ease of online access – mobile/net banking
  • Debit card deals
  • ATM and branch presence/network
  • Transaction or service charges

What are the various types of Savings accounts? Are there any restrictions with regards to age, income etc. for opening a basic Savings Account by banks for individuals?

There are no restrictions like age and income criteria of the individual for opening a Basic Savings Account.

How do I approach Kotak Bank to open a Savings Account?

You can open a Savings Account in two ways :

Apply in person, at the branch – You need to visit a nearest branch with your KYC documents and place the request for account opening. Branch staff will assist you with the process

Apply online You can apply for a savings account online through the bank’s website by submitting your KYC and other basic details.

How do I use a mobile app to access my account?

Registering on the Kotak Mobile Banking App is very simple.

1. Download Kotak Bank app from Google Play Store/Apple App Store/Windows Store/Blackberry World on your smartphone

2. Login with your Customer Relationship Number (CRN). You can find your CRN from your Debit/Credit card.

3. Authenticate using your Debit/Credit Card details or Net Banking password

4. Set a 6-digit MPIN

5. Enter the activation code sent to your registered mobile number to complete the registration process and experience the convenience of mobile banking on your mobile phone with ease.

In what ways can I track my savings account?

You have access to a number of channels to track the transactions in your savings account:

  • Physical account statements are sent quarterly for Edge/Pro/Ace savings accounts
  • Mini statements through the ATM

  • Email and Mobile alerts
  • Savings Account balance enquiry through SMS
  • View savings account details & transactions through Net Banking

What is the interest rate on savings account?

Daily balances in Savings Account above Rs. 50 lakhs will earn 4% interest p.a. and daily balances in Savings Account up to Rs. 50 lakhs will continue to earn 3.50% interest p.a. These interest rates are applicable for Resident Accounts only.

Whereas for an NR (Non-Residents), daily balances in Savings Account above Rs 50 Lakhs and below Rs 50 Lakhs will earn a flat 3.50% interest p.a.

What are the rules for opening a savings account?

Rules for online saving account opening are as follows:

1. Please ensure your mobile number is linked with Aadhaar

2. Keep your original PAN Card handy. Kindly do not keep photocopies


3. Keep a plain white paper and a blue/black pen to upload your signature

4. To ensure that your deliverables reach the right address, please add a communication address, if different from the one mentioned on Aadhaar

5. Kindly ensure a strong internet connection for due completion of Video KYC. Don’t forget to enable live location access for the same


When will I receive my savings account statement?

Email statement are sent within the same working day from the date of request.
Physical statement are delivered within 7 working days from the date of request.
Please make sure Email ID and Communication address registered with the Bank are updated with your latest details.

You can place a new request for statement by Email or Post in following ways:

On WhatsApp:
You can easily request for a statement on WhatsApp:
1. Register by clicking on from mobile browser. It will directly open Kotak Bank's  WhatsApp Chat screen.
Give us a Missed call on 9718566655 from your registered mobile number to get started. You will immediately receive a welcome message and all services related details on WhatsApp from Kotak Bank's official number 022 66006022.
2. Type STMT.
3. Enter the last 4 digit of your account number.

On Mobile Banking:
1. Go to Banking
2. Account Statement
3. Select the duration and the mode (Email/Post)

On Net Banking:
1. Go to Banking
2. Service Request --> New Service Request
3. Select Account Statement
4. Select the duration and the mode (Email/Post)