How many members of your family have at least one saving bank account? The answer will be ‘All the members’ in most of the cases. Looking at the current trend of maintaining saving accounts by all the members of the family, now banks have introduced “Group/ Family Saving Account Scheme”. Under this Scheme, bank allows its customers of the same family to club there bank accounts under one customer Id for easy access.
Which means if you, your Parents, In-laws, Spouse, Siblings, Grandparents, Children or Grand Children have saving account in a common bank then you can club all the accounts under single customer id. Banks allow you to club your saving account with your family members even if the account of your family members are in different branch, different city or have a Non Resident Account.
Under Family Saving Account Scheme, one account will be called as primary account and the customer id of the primary account holder will be assign to all other accounts for clubbing purpose.
Lets have a look What at the advantages of clubbing saving bank accounts?
Benefits Of Group/ Family Savings Account
Minimum Balance Requirement :- Clubbing of savings account helps maintaining the minimum balance requirement collectively. Which means if you have clubbed 3 different saving accounts with minimum balance requirement of Rs 10,000, Rs 5000 and Rs 20,000 respectively. Then you will have to maintain the highest of all i.e Rs 20,000 by combining the balance of all three accounts. In simple words, if you have Rs 5000, Rs 5000 and Rs 10,000 i.e Rs 20,000 in total – it fulfills your minimum balance requirement.
Sweep Balance :- Clubbing of saving account offers a facility of sweeping from one account to another. Like if have Rs 20,000 in your account and you have drawn a cheque of Rs 30,000 from your bank account unknowingly then rather then bouncing your cheque your bank will debit Rs 10,000 from another account and make the payment.
Apart from these benefits, some banks offers other discounts to its customers on clubbing there saving bank accounts like discount on debit or credit cards, discounts on locker rental etc..
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Points To Remember
- In case of non maintenance of minimum average balance, primary account holder will be liable to pay penalty.
- If you club a salary account, where minimum balance can be zero, the minimum balance requirement will become applicable.
- You can add more members to Group/ Family Savings Account anytime by informing the bank.
- You can leave Group/ Family Saving Account anytime by informing bank.
- If primary account holder wants to leave then he/ she has to take consent of all the family members and in that case, family account will be dissolved.
- You can club minimum 2 accounts and maximum number of accounts which can be clubbed depends upon your bank.
- One can club normal saving bank account but this facility may not be available on no frill account and HUF account.
Different Banks Offering Group Saving Accounts With Different Names Like :-
- HDFC Bank :- Family Savings Group Account
- Yes Bank :- Yes Family
- ICICI Bank :– Family Banking Savings Account
- Kotak Mahindra Bank :- Family Savings Account