Savings accounts are the most commonly leveraged financial products in India. They are the core business generator of banks, so public as well as private sector banks offer saving accounts. Over the last couple of years, there has been a substantial rise in the number of savings accounts in the banks. This is because you get to secure your money while earning interests.
Though a fixed deposit account have higher interest rates, savings accounts enable you to enjoy higher liquidity. If you have decided to open savings account, you should be aware of its types. And in this article, we are highlighting the different types of savings accounts –
Basic/Regular Savings Account
A regular or basic savings account provides a lot of important services. You can deposit as much as you want in these accounts over the course of time. Moreover, you will be required to maintain a minimum balance, and failure to the same is subjected to a penalty.
For better access, you can have debit cards and cheques linked to your account. You may be charged an annual fee for these services.
This is a type of joint savings account where one of the joint holders is an individual below 18 years of age. The other joint account must be the minor’s parents or guardian. Typically, all major banks in India offer this type of account.
Joint savings accounts are managed by more than one holder. In these accounts, any of the account holders can withdraw the deposited money. And the debit cards can be issued in the name of both the account holders separately. Typically, joint accounts have two holders, but there could be a total of four members. Banks that offer savings accounts also provide joint accounts.
Women’s Saving Account
This type of savings account is specially designed for women. It comes with many benefits, including discounts on other bank products, higher interest rates, complimentary coverage on personal insurance, etc.
A salary account is an account, which is opened by salaried individuals. A lot of employers deposit monthly salary and bonuses of the employees into the salary account.
These account types come with additional benefits like zero balance feature, a higher rate of interest on deposits, a free checkbook or draft every month, etc.
Senior Citizen Savings Account
This type of savings account is opened by individuals who are above the age of 60 years. These accounts come with many benefits that are not offered in the basic type of account. Some of these advantages include no-minimum balance requirements, a higher rate of interest, special offers on term deposits, etc.
There you have it, different types of savings accounts available in India. Each of these accounts come with different sets of rules and features to cater to various financial needs.
By understanding the objectives of these accounts, you will be able to make a better decision. Irrespective of the account you choose, make sure you read through the bank’s offerings carefully before making the final decision.