Savings Account is one of the most preferred financial instruments offered by every bank. It is a great option due to its reliability, high liquidity rate, easy access, and no limit on deposits and withdrawals. There are many types of savings accounts available in India, which you can choose according to your needs and convenience. Let us know about the different types of savings accounts and which one is the most suitable option for you in this detailed guide.
Types of Savings Account
There are different types of savings accounts available in India, which cater to different financial needs. Choosing the right account as per your requirement is important for your financial management.
Regular Savings Account
This is the most common and simple savings account that any individual can open after completing the e-KYC (Know Your Customer) process. In this, you earn interest on the amount deposited. Most banks put a condition of maintaining a minimum balance and may charge a nominal annual fee for account maintenance. This is ideal for individuals who want a basic and easy-to-use account.
Zero Balance Savings Account
This is perfect for individuals who want to skip the hassle of maintaining a minimum balance. This account does not require you to maintain a monthly average balance (MAB). These can be opened and maintained without any initial deposit. However, banks may limit the number of ATM withdrawals, may not provide a checkbook facility, and may also limit the type of debit cards available. This is best suited for people who have irregular incomes or who are students.
Senior Citizen Savings Account
This account is designed for individuals above the age of 60 and offers them special features, such as additional interest rates, dedicated relationship manager, low interest rates on loans, etc. This is a great way for retired individuals to keep their savings safe and get better returns on it.
Ladies Savings Account
This account is specially designed for women and offers many features for women, such as special debit cards for women, preferential loan and credit offers, discounts on lockers, multicity chequebooks, unlimited ATM cash withdrawals, waiver on minimum balance requirement, etc. It helps in providing financial independence and convenience to women.
Children Savings Account
These accounts are designed to help children learn to save and manage money responsibly. Parents or guardians can open these accounts for children below the age of 18 by providing identity proof and guardianship declaration. This gives children an opportunity to develop financial habits from an early age.
Instant Digital Savings Account
These accounts can be opened by completing the online KYC process in a few seconds through a mobile or banking application. If the account holder does not complete the KYC process within a certain period, the bank freezes the account. Some banks set the maximum deposit limit of these accounts up to ₹1 lakh. This is convenient for those who want to open an account instantly and prefer digital transactions.
This is opened exclusively for people who are employed. Monthly salary comes into these accounts. Some of the important features of these accounts include free chequebooks, international debit cards, zero balance accounts, supplementary personal accident insurance cover, preferential interest rates on loans, etc. It helps salaried employees in managing their finances.
Family Savings Account
This enables family members to open multiple accounts under the same family ID and avail various benefits, such as recurring deposits, fixed deposits, etc. The family members included in this account are parents, spouse, children, in-laws, grandparents, grandchildren, etc. It simplifies financial planning and management for the entire family.