Banks offer the customers different types of accounts for their deposits such as Savings account, Current account, Fixed Deposit account, Recurring account, etc. The customers can open an account with the bank as per his/ her needs, time horizon for deposits and objectives.
A Savings Account is offered by all the banks in India. It is the very common and basic product provided by the banks to the customers. It is the most popular financial instrument available in India. It offers an interest on the deposit. It can be opened by any individual. Savings account allows you to keep your money in a safe place wherein you earn an interest every month on this money.
Savings Accounts are one of the major sources of funds for banks. Savings accounts help you to save and transact with ease. Along with providing cheque facility these accounts also provide a lot of flexibility in deposits and withdrawal of funds from the account.
After the launch of Jhan Dhan Yojana by the Prime Minister Shri Narendra Modi, there has been a sharp increase in the number of savings accounts in India.
The only disadvantage with a savings bank is that it offers very low interest as compared to other investment avenues available in the market. Actually, the interest that you earn on money kept in savings account is so low that it even doesn't meet the rate of inflation.
Savings account is best suited for salaried employees or any other persons having a regular income who want to keep their money in a safer place and earns good returns as well.
(1) Salaried Account
These account for opened for salaried employees. They are opened by the employers and are zero balance accounts. Monthly salary of the employees is credited directly to these accounts by the employer.
(2) Regular Savings Account
It is a very common savings account offered by all the banks. It provides a fixed interest on the deposit maintained by the account holder in the account. If provides debit card, net banking facility, chequebook, passbook/ account statement, etc. to the account holders.
(3) Women's Savings Account
Women's Savings Account is targeted to women customers. These accounts offer special features and benefits like privilege cards, free insurance cover, special discounts, additional offers, etc. Cashbacks and exciting offers on Women's Debit Card are also available.
(4) Customised Savings Account
Customised Savings Accounts are offered by the banks to cater to different target groups to suit different needs of such customers. Examples of such accounts are Privilege banking account, 3-in-1 account which gives Banking, Trading and Demat accounts in one account, Goal-oriented account, etc.
Additional benefits are provided in these types of account by the banks. The banks may levy some extra charges for the same.
(5) No Frills account
No Frills account enables you to bank with a zero minimum balance and it has a stipulated minimum average balance. It is suitable for the persons who have limited cash flows.
In case, the balance in this account crosses Rs 50,000 or cumulative value of all the transactions in this account crosses Rs. 1 lakh in a financial year, it will be no longer a no frills account.
(6) Senior Citizen Savings Account
This type of account is targeted to the customers aged above 60 years. The banks provide special & additional facilities to these account holders like Dedicated Senior Citizens Desk for them, no minimum balance, higher interest rates, unlimited cash transactions at branches, etc.
(7) Children's Savings Account
In order to encourage a regular saving habit in the children, banks have introduced this account. It is a special type of joint savings account in which one of the joint account holders is less than 18 years old and one of the joint account holders must be the parent or guardian of the minor. There is no requirement of maintaining a minimum balance in such an account usually. Account holder can operate this account based on pre-set conditions by the parent or guardian.
(8) Sweep-in Savings Account
Sweep-in Savings Account facilitates you to earn higher interest on savings account by linking a fixed-deposit to your savings account. The additional amount of savings account is transferred to the fixed deposit account and thereby the account holder gets higher interest than a regular savings account.
(9) Pradhan Mantri Jan Dhan Yojana Savings Account
Pradhan Mantri Jan Dhan Yojana Savings Account is opened under PMJDY scheme. A Rupay Debit Card is issued to all the account holders. No minimum balance is required to be maintained by the account holder/s. Maximum of 4 withdrawals a month are allowed under this account. There is a free accidental insurance cover of Rs. 1 lakh provided to the account holder.
Usually banks offer an interest in the range of 3.5% to 4.5% on the deposits in Savings Account. Private Banks provide better rates as compared to Public Banks. Now-a-days, newly launched Payments Banks and Small Finance Banks offer 1% to 2% more returns than normal rates in order to increase their market share.
Interest on savings account is calculated on the daily available balance but the same will be paid on quarterly basis.
One of the following modes can be used to check the balance available in your savings account: