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Types of Savings Account

Features & Benefits of Savings Account

Last Updated 27th Sep 2021

  • Banks offer special savings accounts to cater to the needs of different groups of people.
  • On a regular savings account, you earn a small percentage of interest on the balance throughout the year.
  • A salaried savings account, is designed for salaried individuals and is featured with no-minimum balance requirement.
  • Senior citizen savings account provides financial security to the senior citizens and offers higher interest rates.
  • Children or minor savings accounts allow parents to save for their children with no minimum balance requirement.
  • Banks also offer Women Savings accounts at higher interest rates to women customers.
  • With the zero-balance savings account, you no longer need to go through the trouble of maintaining a minimum balance.
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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 that are designed to meet different savings account customers. There are mainly five types of bank account:

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

Below are detailed descriptions for each type of savings bank 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 a penalty if you fail to do so. You can avail freedom in terms of deposits and tenure; however, withdrawals will be limited.

Regular Savings Accounts Offered by Top Banks

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

Bank Minimum Balance Required Saving Account Interest Rate
Yes Bank Customizable Savings Account Customized Account: Rs. 10,000, Yes First: Nil, Yes Primia: Rs. 2 Lakh 4.00% - 5.50%
ESAF Small Finance Bank Regular Saving Account Rs. 1,000 4.00% - 7.00%
AU Small Finance Bank Samarth Saving scheme Rs. 5,000 3.50% - 7.00%
Equitas Small Finance Bank Regular Saving Account N.A 3.50% - 7.00%
Jana Small Finance Bank Regular Saving Account Rs. 2,500 3.50% - 7.25%
Ujjivan Small Finance Bank Ujjivan Bank Regular Savings Account N.A 4.00% - 7.00%

Salary Savings Account

As the name suggests, Salary savings accounts are for salaried individuals. Generally, employers create salary savings accounts for employees. Besides the key benefits of savings accounts, you also get the feature of a 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.

Salary Savings Account Offered by Top Banks

BanksInterest Rates
SBI2.70% - 2.70%
HDFC Bank3.00% - 3.50%
ICICI Bank3.00% - 3.50%
Axis Bank3.50% - 4.00%

Senior Citizen Savings Account

The key object behind a senior citizen savings account is to provide financial security to senior citizens. The Senior Citizen savings account offers higher interest rates with minimum balance requirement. This sort of account can be linked to pension funds.

Top Senior Citizen Savings Account

Bank Name of Savings Accounts
Yes Bank Yes Respect Savings Account
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

Children and Minor Savings Account

Children or minor accounts are for those who have not reached the age of 18. The aim behind Children savings account is to create a sense of investment in children and to allow parents to save for their children. The Children and Minor savings account offer 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

Below mentioned is the list of banks providing savings accounts for children and minors.

Bank Name of Savings Accounts
Yes Bank MY First Yes
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

Women’s Savings Account

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

Women Savings Accounts 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 Facilities

Following are the facilities that banks provide via savings accounts.

  • Savings account offers interest rate in the range of 0.50% to 7.25%.
  • Avail savings account with passbook, cheque book, debit cards and credit cards.
  • There are different types of savings account to serve different customer requirement.
  • You can withdraw money from your savings account using ATMs located across the country.
  • With savings account, you can make online payments using net banking, debit cards and UPI.
  • You can auto debit your loan EMIs through your savings account.
  • Enjoy the benefits of joint savings accounts.
  • Get notification or alert via mail or SMS for every transaction.
  • View your account statements via mail, SMS or e-banking.
  • If you are a savings account holder, you can apply for loans through the net banking platform.

Savings Account Charges

Opening and maintaining savings accounts are subject to several charges. While banks may charge some fees as per their procedures. Below 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:

  • Regular savings accounts for operating a basic savings account.
  • Salary savings accounts for salary transactions.
  • Senior Citizen savings accounts for senior citizens.
  • Women’s savings account for women.

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:

  • 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 better than a savings account?

One of the better instruments is Fixed Deposits, they are excellent financial instruments and offer higher returns, below are the features of FDs:

  • Tenure ranges between 7 days to 10 years
  • Secured returns
  • Interest income compounded monthly, quarterly or annually.
  • Penalty against partial or full withdrawal facility
  • Loan against deposits available
  • Senior citizens get higher interest rates in the range of 0.25 -1.00 %.

Can I lose money in a savings account?

Yes, there are chances that you might lose money in the savings accounts. If the inflation rate is greater than the interest received on the saving accounts then in the long run your account is fetching you negative returns. The best way to subside this issue is to invest in a financial instrument that offers higher returns than the inflation rate in the economy. Currently, the inflation rate in the economy is around 6%.


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