If you keep the money to yourself, you will have the urge to spend it. A savings account will help you separate your money from your daily needs. So you can save for your long-term financial goals.
In India, the number of new savings accounts has increased. It is because of the government’s Jan Dhan Scheme. Customers can open specialized savings accounts based on their specific needs. In this article, we will look at the different types of savings account in banks.
A savings account is a deposit account that pays interest opened at a bank. In a nutshell, a saving account allows you to deposit and withdraw money. You will also gain interest in your money. A savings account works by allowing you to create an account and deposit money into it. Bank use your money to give loans to other people. Thus they pay you interest on your savings. Different banks provide different types of savings account. This is the most basic bank account. One can open a savings account in any commercial and cooperative bank. It is a bank’s primary business.
- A saving account provides tax-free interest up to Rs.10,000.
- Some banks offer discounts and cashback for using your debit card. For opening a bank account, some banks offer accident, health, travel, etc. insurances.
- A savings account includes a passbook and access to net banking.
- You can use it to make online payments. You can pay your electricity and other bills, and so on.
- Customers who have a savings account can join the Public Provident Fund scheme.
- You can access money up to a certain limit at any time. There is no limit to the number of deposits and withdrawals that can be made.
- Savings accounts do not have a time limit.
These are some common types of savings account in banks
It is also known as a regular savings account. Anyone can open it at any bank. It provides a few facilities, such as cheques and debit cards. Basic Savings Accounts need the least balance. This account’s total credit limit is 1 lakh rupees. Yet, some banks also provide zero balance savings accounts. The interest rates on basic savings accounts are low. But, it could be the ideal place to save for short-term goals. Check out for more details.
Salary savings accounts are available to employees. It has a higher interest rate. Companies deposit the monthly salary of employees into it. It offers extra features, such as a zero balance feature and a free checkbook. Accountholder should not fail to deposit money in this account for 2-3 months. Or else it will change into a regular savings account.
It is also known as family savings accounts. A joint account is accessible by more than one account holder. Any account holder can withdraw money. Each account holder may have their own debit card. Some banks allow up to four joint account holders. It helps in the planning of your and your family’s wealth. It provides easy access to money for family members who live in different cities.
Many banks offer savings accounts for women. Women’s Savings Accounts have lower loan rates. It offers locker discounts. This account offers discounts on bank products, free personal insurance. Its interest rates are higher. It gives high-value loans at low-interest rates to start a business. It encourages working and non-working women to save for their futures.
Many banks provide savings accounts for children. It encourages parents to save for their children’s future. There is no least balance needed for this type of savings account. This account has the same features as a regular savings account. It helps children in learning the basics of banking. It teaches children how to utilize money.
This type of account is available to people over the age of 60. It comes with extra benefits and higher interest rates. Seniors can connect this account to their pension funds. Many leading banks in India offer senior savings accounts. This account protects your savings after you retire. It offers a reasonable rate of return on that. It is the most secure investment method, generating a steady income.
A savings account is a basic account with few features. But it is an important tool for people to save money. Different banks provide different types of savings account. They have different interest rates, least balance requirements. Research before starting a savings account in any bank.