An Overview on the Types of Savings Account

A savings account is a simple account with the bank of your choice. Users typically deposit their salary or other income in such an account before the money is moved for different purposes. The movement of the funds can be withdrawals to meet routine expenses, pay EMIs on loans, bill payments, or make investments, like into an FD or mutual funds. Although a significant part of the funds deposited in a savings count is moved, it is a good idea to check the interest rate offered by the bank.

In August 2014, the Modi government launched the Jan Dhan Yojana as part of the RBI’s initiative of financial inclusion. By the next year, 66% of the roughly 536 million no-frill accounts were Jan Dhan accounts. A couple of years later, India’s banking population had risen to 80%, ensuring that most people had access to basic financial services.

Opening a savings account can be done online and is completely hassle-free. You can open with minimum funds, the money is safe, and the account offers a lot of flexibility, like no lock-in period.

Types of Savings Accounts

Pratham Savings Account

This is a zero-balance account, available in some parts of the country. Interest rates are calculated on progressive balances in different rate slabs. The interest becomes payable every three months. If the balance in the account is above ₹10 crores, the annual interest rate is around 3.5%. For amounts less than or equal to ₹1 crore, the interest is around 6%. Note that the savings account interest rates are subject to change periodically.

Vishesh Savings Account

This is one of the types of savings accounts that comes with a RuPay debit card. It can be used to access funds anytime and meet other bank requirements. The card is equipped with an online fraud cover of ₹2 lakhs and an additional ₹2 lakhs as a personal accident insurance cover.

This type of savings account is available only in the rural areas of India. You can also expect:

• up to 1% surcharge waiver on fuel

• 5% cashback on utility bills and

• ₹25 cashback on train tickets booked at IRCTC.co.in.

Minor Savings Account

Parents can open this savings account with a high interest rate for children below 18 years of age. There is no minimum balance requirement and you can benefit from unlimited fund transfer, free visa debit card and transparent charges. Simply deposit the amount and watch it grow as your child grows.

Shakti Savings Account

This has been designed for providing financial independence to women. The average monthly balance requirement is ₹100 only. It comes with an accidental insurance cover of ₹1 lakh on debit cards, with an additional ₹2 lakhs of online fraud cover.

Senior Citizen Savings Account

This account offers free doorstep banking and preferential rates on fixed and recurring deposits. It is a good idea to check for facilities like unlimited fund transfer, minimal charges, free card for life, and free withdrawals from the ATMs of other banks.

Different types of savings accounts benefit you in multiple ways. Get in touch with a reputable bank to understand the terms and conditions.