Bank Accounts | Dankworth Bank

Savings Account
Current Account
Fixed Deposit Account

Features and Benefits of Savings Account

Here are some of the features and benefits of a savings bank account:

As the name suggests, a savings bank account is a safe place to store surplus funds. It helps build a nest egg for the unexpected situations that may arise in the future.
The balance in a savings account earns interest. While the rate of interest might not be as high as other bank deposits, since the funds are not withdrawn on a regular basis, it continues to increase the funds in the account.
All savings account, whether held at a nationalised bank or any other financial institution, is always safe.
A savings account provides account holders some level of liquidity. Banks usually provide account holders with debit/ATM cards that can be used to make a certain number of withdrawals from their savings account.
An advantage for most savings account holders is that banks usually offer discounts on the locker rental facilities for customers who maintain the minimum quarterly balance.
Most banks also provide savings account holders with various insurance covers including personal accidents and death.

Types of Savings Accounts

Banks offer customers a variety of savings accounts that differ in terms of its balance requirements and features. The following are some of the types of savings accounts offered by most banks:

Regular Savings Account

These are opened on the bank’s most basic terms and conditions. These accounts don’t see regular deposits of consistent amounts, nor do they see regular withdrawals. These are primarily the virtual equivalent of a safe where the money just sits waiting to be used by the account holder. These facilitate the most common form of virtual savings that aren’t touched, unless absolutely necessary.

Salary Based Savings Account

These most often opened by banks on the request of large companies that require a payment disbursal solution. Banks offer companies preferential rates and specific terms for these accounts – which will be individually handled by each of the latter’s employees. At the date of payment disbursal, the bank withdraws from the company account and disburses the required amount among the salary based savings accounts opened for the employees. It should be noted that most salary accounts do not have a minimum balance requirement, but once the salary stops being credited (for whatever reason) for 3 consecutive months, these accounts are changed into regular savings accounts with a minimum balance requirement.

Savings Accounts for Senior Citizens

These accounts are created for senior citizens, with specific functionality and benefits for those in the senior citizen category. These function in the same way that regular savings accounts do, but generally offer higher rates of interest and exclusive banking privileges. They can be linked to other senior citizen savings schemes to remit the funds from retirement accounts or pension funds, and consolidate all the funds under one single bank account.

Everyday Current Account

Simple and straightforward banking with no monthly fee

A current account with everything you would expect including overdraft (subject to status) and contactless Santander debit card
No interest is paid on your balance
No monthly fee to maintain the account

1|2|3 Current Account

Earn cashback on your household bills and interest on your balance for a £5 monthly fee to maintain the account

Monthly interest of 1.50% AER / 1.49% gross (variable). Interest is only paid on balances up to $20,000
Up to 3% cashback on selected household bills
Pay in at least $500 into your account each month and have at least 2 active Direct Debits
$5 monthly fee to maintain the account

Select Current Account

All the features of the 1|2|3 Current Account and receive a more personal banking service

With 24/7 telephone support team, a Relationship Manager and support when you’re abroad
Pay in at least $5,000 per month into the Select Current Account OR keep $75,000 in any Santander investment(s), savings or current accounts
$5 monthly fee to maintain the account

Basic Current Account

A simple account to manage your money and build your credit history

Comes with a top-up Santander debit card to help you manage your spending
No interest is paid on your balance
No monthly fee to maintain the account

Bank Fixed Deposit Scheme

A fixed deposit (FD) is a type of deposit account provided by banks for a fixed tenure at a fixed rate of interest. In this scheme, the depositor keeps a fixed amount of money in an account known as FD account. The money is deposited only once at the time of account opening. At the end of the tenure, the interest amount is calculated on the principal amount and the total sum, including interest, is paid back to the depositor cumulatively. A fixed account earns higher interest rates than a regular savings bank account.
Fixed Deposits are also known as ‘term deposits’ or ‘time deposits’. If you wish to deposit additional amount in fixed deposit, you need to open another FD account. Term deposits are considered safest investment option compared to other savings instruments. Its duration of a fixed deposit may vary from 7 days to 10 years. The rate of interest on these deposits is based on the tenure and bank’s interest rates policies. Key features are:

It can be opened by all residents, including minors and HUFs.
Allows choosing 2 nominees in application form eligible to receive the FD amount after the death of the holder by submitting a valid death proof.
It does not allow to withdraw deposit amount before maturity. Hence, it encourages a depositor to save. Premature withdrawals from FD are allowed in emergencies by paying the penalty.
Banks also offer Sweep-in facility on term deposits, which allows the depositor to interlink their savings bank account to a fixed deposit account. This unique facility on FD facilitates the automatic transfer of surplus funds from savings account to FD account, thus allowing you to earn FD rates on your savings with an option to break the FD anytime and use the amount for your expenses.
You can also avail of loans on your fixed deposits to meet any financial emergency. In loan against FD, your deposit is the security for the loan. Depending upon the bank, you would get a loan on your FD up to the extent of 75-95% of the FD amount, which varies from one lender to another. Rate of interest on FD loans are 1%-1.5% higher than your FD rate.

Fixed Deposit Interest Rates for Senior Citizens

Interest offered on senior citizen FDs is slightly higher than what is offered to other individuals. Senior citizens are required to submit their age proof to avail the benefits of senior citizen FDs.

Age of senior citizen should be 60 or more on the date of investment.
Tenure on senior citizens FD is between 7 days to 10 years in most of the banks.
Senior citizens FDs earn 0.25% to 0.75% higher interest compared to regular deposit rates.
Loans against FDs are available on senior citizen FD.
Penalties are applicable in case of premature withdrawal of FDs of senior citizens as applicable to other regular accounts.

Timely Closure

Closing your fixed deposit account at the time of its maturity is timely closure. While closing your FD upon its original maturity, the bank will pay you back the principal amount along with the interest on your deposit.

Breaking of FD account

Breaking a fixed deposit account means withdrawing the entire sum of money before its maturity. This is allowed from time to time and the withdrawal rules may vary from one bank to another. Banks usually levy a penalty at the time of breaking your FD account or pre closing it before attaining the original maturity and it pays you back the principal and interest either at a lower interest rate or after deducting a penalty on your FD. However, some banks including Yes Bank and Bank of Maharashtra waive off interest penalty on FD if the liquidation is due to some emergency.

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