The concept of a savings account is simple, it is a financial instrument which is available in almost every bank. In a savings account, account holders deposit their money and earn annual interest on it.
This article will present to you different forms of savings account available in the banking sector.
Features of a Savings Account
There are multiple features offered by savings accounts to you during bank account opening. Some of them are:
- Account holders can earn between 2.75% to 7% of annual returns on their bank balance, based on their bank’s interest rate policy.
- A savings account offers high liquidity for withdrawing or transferring money as many times as you want.
- Account holders get Debit or ATM Cards at the time of account opening.
Despite of these key features, there are many more that you can avail with a savings account. On that note, let’s start exploring the types of savings accounts.
Types of Savings Accounts
Banks provide a number of savings accounts that are designed to provide special benefits to customers.
1. Regular Savings Account
This savings account is one of the simplest savings accounts and any person can open this account if he or she is 18 years of age. The account holder earns some interest on the amount present in this account and may be charged for using services like fund transfers, debit card etc. The account holder also must maintain an average monthly balance.
2. Zero Balance Savings Account
These accounts come without the limitation of maintaining an average monthly balance and the account holder can have these accounts with no amount deposited in them. As there is no minimum balance required, the bank may apply charges on account services and not offer any additional benefits in account.
3. Kids’ Savings Account
These accounts are opened in the name of minors, basically, children who are below 18 years of age, by their parents or guardians. These accounts are meant for children to understand the basics of banking and inculcate financial behaviour from the very beginning.
To open these accounts, parents or guardians need to provide their identification proof and a declaration to open the bank account. It is important to note that these accounts are accompanied by regulated deposits and spending limits.
4. Women’s Savings Account
This account is only available to women who also get special benefits like a dedicated debit card for women, and preferential loan offers. For female customers, many banks offer services at a lower cost, locker discounts and other benefits.
5. Senior Citizens’ Savings Account
For people over 60, a senior citizen savings account is designed. Account holders get special privileges such as preferential interest rates on fixed deposits, lower service fee on account transactions, doorstep banking services and many more senior citizen-friendly services.
Salary Account
These accounts are designed for salaried individuals who get their salaries every month into these accounts. The bank provides special privileges with these accounts, such as zero balance accounts, free chequebook, complimentarydebit card, preferential interest rates on loans and many more services.
Final Thoughts
Before savings bank account opening, consider the following account types mentioned above. Every bank has different types of accounts based on its customers’ choices. Always choose the ones that are most suitable according to your needs.