MyLoanCare is a FREE of cost service for borrowers

Get Cashback of Upto ₹ 1,000* on Loans Apply Online

MyLoanCare Customer Ratings - 4.5/5.0

Menu

Types of Savings Account

Features & Benefits of Savings Account

Last Updated 31st Oct 2020

  • Savings accounts offer high liquidity.
  • You can make payments from your savings accounts, using debit cards, net banking, UPI payments, etc.
  • With the zero-balance savings account, you no longer need to go through the trouble of maintaining a minimum balance.
  • You can link your Public Provident Fund, Demat account and other investments to your savings accounts. Thus, the sum gained on the investment will be transferred to the savings account.
  • You can avail the feature of auto sweep with your savings account. It will help you earn more interest on your idle lying money in the bank.
  • Savings accounts provide auto-debits for payments. It helps you in making your mandatory payments on time.
Apply for Savings Account

Savings Account Facilities

Following are the facilities that banks provide via savings accounts.

  • Avail facilities like passbook, cheque book, debit cards and credit cards.
  • There are different types of savings account to serve different types of requirement.
  • You can withdraw money from your savings account using ATMs located across the country.
  • Make online payments using net banking,debit cards and UPI.
  • Auto debit your EMIs through your savings account.
  • Enjoy the benefits of joint accounts.
  • Get notification or alert via mail or SMS for every transaction.
  • View your account statements via mail, SMS or e-banking.
  • Apply for loans through the net banking platform

Documents Required to open Savings Account

Opening and managing savings accounts have become easier with the emerge of net banking. The procedure may vary from bank to bank. However, the requirement for documents is more or less the same. Here is the list of documents you will require while opening a savings account.

  • Identity proof (Voter’s card, Aadhaar Card, Passport etc.)
  • Address proof (Voter’s card, Aadhaar Card, Passport etc.)
  • PAN card
  • Passport size photograph (the number varies from bank to bank)

Remember, the PAN Card is a must for holding a bank account and the Government has made it mandatory to link the bank account with Aadhaar cards.

Types of Savings Account

Savings accounts offer a high range of features, facilities and benefits. What makes the savings accounts more convenient is the set of different types of savings account accessible in the market. There are mainly five sorts of savings accounts.

  • Regular or Basic Savings Account
  • Salary Savings Account
  • Senior Citizen Savings Account
  • Children Savings Account
  • Women’s Savings Account

Below are detailed descriptions for each type of savings account.

Regular Savings Account

Regular or basic savings accounts allow you to deposit money whenever you want. The account earns a small percentage of interest on its balance throughout the year. You will be required to maintain a minimum balance in your savings account and pay penalty if failed to do so. You can avail freedom in terms of deposits and tenure; however, withdrawals will be limited.

Types of Regular Savings Accounts Offered by Top Banks

Here is a list of top most banks offering Regular or Basic savings account together with the interest rates and required minimum balance.

Bank Minimum Balance Required Interest Rate
DBS Bank Digi Account Average Monthly Balance of Rs. 5000 3.50% - 5.00%
SBI Basic Savings Bank Account NIL 2.70%
HDFC Bank Regular Savings Account Rs. 10,000 for metro Urban branches Rs. 5,000 For Semi Urban branches Rs. 2,500 for Rural branches is required to open a Savings Regular Account 3.00% - 3.50%
ICICI Bank Regular Savings Account Rs. 10,000 in metro and Urban locations, Rs. 5,000 in Semi Urban and Rs. 2,000 in Rural locations 3.00% - 3.50%
Fincare Small Finance Bank Smart Saver Account N.A 3.50% - 7.00%
Ujjivan Small Finance Bank Ujjivan Bank Regular Savings Account N.A 4.00% - 6.50%
ESAF Small Finance Bank Regular Saving Account Rs. 1,000 4.00% - 7.00%
AU Small Finance Bank Samarth Saving scheme Rs. 5,000 4.00% - 7.00%
Equitas Small Finance Bank Regular Saving Account N.A 3.50% - 7.50%
Jana Small Finance Bank Regular Saving Account Rs. 2,500 4.00% - 7.25%

Salary Savings Account

As the name suggests, Salary savings account are for salaried individuals. Generally, employers create salary savings account for employees. Besides the key benefits of savings accounts, you also get the feature of no-minimum balance requirement. However, the salary accounts are automatically turned into Regular savings accounts if no salary has been credited to the accounts in consecutive three months. In such a case, the accounts will be subject to a minimum balance requirement.

Senior Citizen Savings Account

The key object behind senior citizen savings account is to provide financial security to the senior citizens. The Senior Citizen savings account offers higher interest rates and no minimum balance requirement. This sort of accounts can be linked to the pension funds.

Below is the list of top most banks offering the Senior Citizen savings account.

Bank Name of Savings Accounts
HDFC Bank Senior Citizens Account
Induslnd Bank Indus Senior Savings Account
Kotak Bank Grand- The Savings Programme for the 55+
State Bank of Indian Senior Citizen Savings Scheme
IDFC Bank Senior Citizen Savings Account
Canara Bank Canara Jeevandhara
ICICI Bank Life Plus Senior Citizens Savings Account
Axis Bank Jubilee Plus Account (Senior Citizens)

Children and Minor Savings Account

Children or minor accounts are for those who have not reached the age of 18. The aim behind this type of savings accounts is to create a sense of investment in children and to allow parents to save for their children. The Children and Minor savings accountoffer the same features as the Regular savings accounts. No minimum balance is required for managing a Children or Minor account.

Children Savings Account Offered by Top Banks

Here goes the list of banks providing savings accounts for children and minors.

Bank Name of Savings Accounts
ICICI Bank Young Stars Savings Account Smart Star Savings Account
Axis Bank Future Stars Savings Account
IDBI Bank Power Kidz Account
IDFC Bank Minor Saving Account
South Indian Bank Junior Savings
Andhra Bank AB Kiddy Bank AB Little Stars AB Teens
SBI Pehla Kadam and Pehli Udaan
HDFC Bank Kids Advantage Account
PNB PNB Junior SF Account PNB Vidyarthi SF Account
Kotak Bank Junior- Savings Account for Kds
Indian Bank IB Smart Kid SB Account
Canara Bank Canara Junior Saving Account
UCO Bank UCO Smart Kids Savings Bank Scheme

Women’s Savings Account

Women’s savings accounts are designed to cater to women. In addition to providing the benefits that come with the Regular savings accounts, Women’s savings accounts offer higher interest rates, discount on other bank products and so on.

Types of Savings Account Offered by top Banks

Below is the list of banks offering Women’s savings accounts.

Bank Name of Savings Accounts
HDFC Bank Women's Savings Account
Axis Bank Women's Savings Account
IDBI Bank SuperShakti (Women’s) Account
Kotak Bank Silk-Women's Savings Account
ICICI Bank Advantage Woman Savings Account
PNB PNB Power Savings
South Indian Bank Mahila Plus Savings Bank

Savings Account Charges

Opening and maintaining savings accounts are subject to several charges. While banks may charge some fees as per their procedures, following is the list containing common charges of savings accounts.

Charges Amount to be deducted
Non-maintenance charge From ₹ 150 to ₹ 300
Charge for transactions at account holding branch of the bank
  • None for the first three translation per months
  • ₹ 150 for any subsequent transaction (after the first three transactions)
ATM Transaction from any other bank
  • None for the first 3 to 4 transaction
  • ₹ 10 to ₹ 20 for subsequent transaction

FAQs

What are the 3 types of savings accounts?

The three types of savings accounts are:

  • Regular savings account: You can deposit money and earn interest. You will be required to maintain a minimum balance.
  • Salary savings accounts: Employers mainly create these accounts for generating salary. There is no minimum balance requirement.
  • Special savings accounts: Senior Citizen savings accounts, Children savings account and Women’s savings accounts fall under this category.

What are the four main types of savings accounts to select from?

The four main types of savings account to select from are:

  • Making and receiving payments online
  • Facility to use net-banking and mobile banking
  • Availability of the auto-sweep feature
  • No limit for tenure and deposit.
  • Facility of debit card which can be used to withdraw money or make payment.

What is a basic savings account?

A basic or regular savings account allows you to save money and earn interest on the investment. There is no limit for deposit and for the time period you can hold the account. However, you will be required to maintain a minimum balance.

What are the features of savings account?

The main features of savings account are as follows:


*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More