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As the name denotes, this account is ideal for parking your temporary savings. This account gives you a nominal rate of interest and you can withdraw money as and when the need arises. The position of account is depicted in a small book called 'Pass Book'. Such accounts should be treated as a temporary parking area because the rate of interest is much less than Fixed Deposits. As soon as your savings accumulate to an amount which you can spare for a certain length of time (even three months), shift this money to Fixed Deposit. It should be understood that your returns on the money kept in Savings Bank account are the least but the flexibility to withdraw is the highest. Rate of Interest on Savings Account is fixed by RBI and is currently 4%. Tips:
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