Suppose you and your family members have savings account under one bank then you can easily club all the accounts under one family account and reap the benefits using “Family Savings Account” option. It includes a lot of advantages when it comes to operating, as whole group is assigned with one customer id. So let us look at it’s features.
1) All individuals are eligible to open this account, except no-frill accounts and HUF accounts. In HDFC bank even Non resident can also open this account.
2) Only savings account are eligible to club under family savings account.
3) Minimum 2 members and maximum 6 members accounts are allowed. But in HDFC bank maximum limit is 4 members.
4) Family includes-Spouse, parents, children, grand parents, grand children, in-laws and siblings.
5) Family need to decide to whom they will appoint as head of the family. This person will be designated as Primary Cust ID”.
1) Major benefit of clubbing your family accounts will be maintaining of minimum balance in individual accounts. Suppose for each individual account you need to maintain Rs.50,000 then for same type of family account you need to maintain Rs.1,00,000. Advantage is, suppose you have four accounts in your family then including all the four accounts you just need to maintain Rs.1,00,000. Even if each family member maintain Rs.25,000 then it will suffice the family minimum balance requirement.
2) As I told above you will find flexibility in maintaining the minimum balance either from all account or by just one account.
3) All your banking needs are created under one family account.
4) In HDFC bank, sweep in from one account to another family account is provided.
Few points to note–
- Charges for not maintaining minimum balance will be collected from family head’s account. If found insufficient balance in family head account then it will be collected from members account.
- Even if you have salary accounts where minimum balance will be zero, these minimum balance requirement applies.
- You can leave the group at any time by intimating the bank. But in case family head wishes to leave the group then consent of all members is required. In this case family account will get dissolved.
- You can add any new at any time after opening this family account.
- Eventhough you are operating under one family but still privacy of each account holder will be maintained.
This facility actually come in handy for maintaining minimum balance for each member, transferring money within family account will be easy and few banks offer some incentive for other products. Like in HDFC bank, 50% off on on the Locker rental calculated on a pro-rata basis and applicable only for the year of allotment. Hence instead of operating individually it is better to operate in group and reap the above said benefits.
Note-This overview is not exhaustive. Hence for detailed information you need to contact your respective banks.