A savings account is one of the safest option to deposit a part of your income that you intend to save. Almost all banks allow individuals to open a savings account against simple paperwork. However, to cater to a large base of customers, the banks introduced customised savings account that meets unique financial needs.
What Are the Types of Savings Accounts?
Although the basics remain the same for all types of savings account, they have some unique features and target a particular group of account holders. For instance, you have women’s savings account, zero balance savings account, etc.
Every type of savings account serves the same purpose of parking funds for a short or long-term financial goal. Similarly, they also yield interest over time. However, by choosing a particular type, you can utilise this account with greater flexibility. Hence, if you intend to open a new savings account with a bank of your choice, it will be wiser to get an overview of the most popular types and choose accordingly.
Regular Savings Account
To start with, a regular savings account is the most popular and common type that is perfect for daily banking needs. To open and operate this account, you need to maintain a minimum balance. The non-maintenance of minimum account balance attracts penalties or applicable charges.
Zero Balance or Basic Savings Account
In contrast to a regular savings account, zero balance savings account does not require you to maintain a minimum balance. In simple words, you can keep the account balance zero and still utilise it without paying any additional charges.
Besides, other features of savings accounts like ATM cum debit card facilities, interest-earning provisions remain the same for this type of savings account. Nevertheless, such savings accounts can also come as an online account that exists virtually and supports online cash deposit, withdrawal, etc.
Women’s Savings Account
As you can infer from the name, these types of savings account are exclusively for female account holders. Although the minimum account balance is required, these accounts offer lucrative deals on shopping and other transactions best suited for women.
Moreover, such accounts can be the best fit for female entrepreneurs as they can use this account for long-term plans like a downpayment for a commercial space for her business. The attractive interest rates aid in growing the money faster.
Kids’ Savings Account
Contrary to what the name suggests, this account generally holds parents who want to save for their children. However, the child can access this account through a debit card if the parents allow it so. The account for minors or kids also helps instil the importance of savings and financial planning to a child’s mind from a very early age. Over time, they can hone their money management skills.
Family Savings Account
This type of savings account includes all family members in a single account. In most cases, it does not require every member to maintain a minimum account balance. It allows account holders to enjoy family-centric features and benefits.
Selected banks also help convert the money above a certain amount to a Term Deposit. Besides, the interests you enjoy on this account remain almost the same as a regular savings account.
Salary Account – Salary Based Savings Account
Typically, employers open such accounts in their employees’ names and also disburse salary to their employees. However, the employees operate these accounts themselves. Usually, such accounts do not need one to maintain a minimum account balance.
On the date of monthly salary, concerned banks debit the amount from employer’s account and distribute the attributed amount across the accounts. With such savings accounts, individuals can also avail of all standard facilities like net banking, ATM cum debit card, etc.
However, in some cases, if the salary does not credit for a certain number of months, for example, 3 months, the account automatically converts into a regular account. Afterward, you need to maintain a minimum account balance.
Besides, there are also savings accounts for senior citizens as well. Although there are types of savings accounts are available in India, most of them have some common features and benefits. However, for better customisation, you can choose one best suited for your banking needs.