Limited) introduced the concept of a Savings Bank account in 1920 with very stringent norms. A customer could deposit minimum Rupee one and maximum Rupees one thousand. He was not allowed to carry a balance beyond Rupees two thousand.And most important the customer could not withdraw his money whenever he wanted to, he had to give three days' notice to the bank to withdraw his money. Banks found innovative ways of adding to their income from Savings Accounts. For every passbook, the customers were asked to pay 25 paise(now given free of cost). Besides banks enjoyed the freedom to fix the interest rate on deposits on the lowest credit balance of any one day of each month. For some time the rate of interest on Savings Account in Indian Banks were regulated by Reserve Bank of India. Now again it is decided by individual Banks in India but they are to follow the Know your customer guidelines introduced in 2002. The bank deposits in Banks in India is insured by Deposit Insurance and Credit Guarantee Corporation formed by an act called The Deposit Insurance and Credit Guarantee Corporation Act, 1961. The limit of insurance at present is Rupees five lakhs only. References External links Savings Account Definition | Investopedia Savings Accounts Regulation D | MoneyRates.com What Is a Savings Account? | The Balance Bank account Interest-bearing instruments