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Savings Accounts: Types and how to select one


Savings Accounts: Types and how to select one

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Types of Savings Account in India

A Savings Account is a banking product that earns interest on your deposited funds. It provides a space to store your available income and generate earnings through the interest accrued. This account offers the advantage of liquidity, as there is no fixed duration during which your funds are inaccessible. It grants you convenient access to your money.

Moreover, a SavingsAccount comes in different types. Each caters to a specific category of individuals and their unique banking needs. So, here is a list of them and their salient features:

  • Regular Savings Account

This is the simplest type, wherein you need to maintain a minimum balance amount. It is ideal for everyday banking needs, and anyone can open it.

  • Kid’s Savings Account

This type is meant for parents who want to put aside a specific amount for their children. The bank issues a free personalised Debit or ATM Card in the child’s name with the parent’s permission. The parents can access the funds in the account through the card at any point.The primary purpose of a Kid’s Bank Account is to teach children money management skills. It is to encourage good financial habits from a young age.

  • Senior Citizen’s Savings Account

This account is designed solely for senior citizens. Hence, it caters to the requirements of such individuals. It usually comes with investment and health benefits. Holders also enjoy Insurance perks and preferential rates on Fixed Deposits.Since the Savings Account interest rates are high in this type, holders can amplify their savings considerably.

  • Family Savings Account

In a Family Savings Account, multiple single accounts are grouped. However, they are operated separately. Also, the average quarterly balance is maintained at the group level. This implies you need not maintain a minimum balance in every Savings Account.This account can be easily monitored through a Banking app. Fund management is simple and easy since all holders can access it.

  • Salary-Based Savings Account

You can open a Salary-based Savings Account at the request of your company or organisation. However, the employee should manage the account themselves. On the date of salary disbursement, the bank withdraws the money from your company’s account and distributes the ascribed amount to the employees’ accounts.

  • Women’s Savings Account

A Women’s Savings Account is like a regular one. However, it has additional customised features to meet the requirements of women. For example, holders get preferential rates on Personal Loans, attractive cash withdrawal limits, exclusive shopping, transaction benefits, etc.

How to select the Savings Account type?

  • Determine your applicable category, such as a Woman’s Savings Account if you are a working woman, to access associated benefits.
  • Evaluate the interest rates provided by various banks to select the most favourable offer.
  • If considering a Family Savings Account, carefully review the operational terms and conditions.
  • Opt for a reputable bank renowned for its banking facilities.