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What are Savings Accounts and Different types of savings accounts?

by rahulmanu
what are savings account

The most common sort of bank account is a savings account, which allows you to earn interest on the money you keep in it. Banks in India provide a wide range of account kinds to satisfy the demands of their customers. To choose the correct type of account when opening a new bank account, you must first analyze your needs. 

What is a savings account?

 A savings account meaning is a type of deposit account that can be opened at any retail bank. You can put your spare cash in this account and use it as and when you need it, while also collecting interest on the sum. 

A Savings Account is a good alternative for managing your every day costs or preparing for an emergency. Banks now provide a variety of Savings Accounts with a variety of features to fulfill their clients’ savings needs.

 Women, children, senior citizens, and others now have accounts with privileges such as a greater interest rate, a reduction in locker fees, and unrestricted withdrawals through ATMs.

How to open a savings account?

Formerly, visiting a bank branch was the only way to open a new Savings Account. Some banks, however, now allow you to open a new Saving Account on the internet. You must submit an account opening form together with the relevant papers online to do so. You will require documents such as your ID evidence, residence proof, PAN card, and Aadhaar card to open a standard Savings Account online.

Type of savings account

Commercial banks, cooperative banks, and post offices all provide savings accounts. A Savings Account is one of the first financial instruments that most people open on their own. Let’s have a look at the many types of savings accounts.

Basic savings accounts

A basic savings account is a basic account that you can open with a bank or other financial organization. Its sole goal is to save your money in a safe location. In exchange, you will receive interest on the cash you have deposited. 

From one bank to the next, the interest rate fluctuates. Basic Saving Accounts frequently have a minimum balance requirement, and you must ensure that your account balance does not go below that amount.

Instant savings account

A Basic Savings Account is very similar to an Instant Saving Account. The main difference is that, whereas a regular savings account may need you to go to the bank to open it, an Instant Savings Account can be started fast online with just a few clicks.

Privilege savings account

Privilege Savings Accounts come with many perks, including unrestricted cash withdrawals, discounts on bank lockers, priority treatment at privilege banking zones, and a dedicated banker to help account holders with their questions and needs.

Family savings account

Family Savings Accounts are accounts that allow all members of your family to address their various financial needs on a single platform. It has several advantages over a conventional Individual Savings Account, including lower minimum balance requirements, expanded banking privileges, and superior features such as Wealth Management and Private Banking.

Women’s savings account

Women’s Savings Accounts are available from several major institutions. These Savings Accounts frequently provide attractive discounts on skill-building programs and courses that help women become self-sufficient. Savings Accounts for women, like Privilege Bank Accounts, provide account holders with specific value-added services such as locker discounts, dedicated banking help, and favorable loan rates, among other things.

Salary account

Salaried Saving Accounts are products designed specifically for salaried personnel. They now often include all of the standard benefits of any other basic Saving Account. Aside from that, Salaried Accounts usually have no minimum balance requirement. This means that account holders are not required to maintain a minimum balance in their accounts at all times.

In India, there are several distinct types of saving accounts. And, before you choose the type of account you want to open, consider your needs and choose the account that will best satisfy them. It’s also a good idea to familiarise yourself with the account’s terms and conditions so you can make the most of it.

Managing a Savings Account

You’ll get a kit with your account number, chequebook, passbook, and ATM card once your new Saving Account is opened. After that, you can use your account for offline transactions and ATM withdrawals. With your new Saving Account, you’ll also be able to sign up for your bank’s online banking service. You must first register for internet banking on your bank’s official website. It’s simple to sign up for online banking; all you have to do is fill out a form with your account number and personal information. The bank will then generate a username and password for your account, which you may use for online banking once you’ve enrolled.

Earn interest 

A saving account is one of the safest places to store your money while still generating interest and having easy access to it 24×7. Banks offer an interest rate from 2 percent to 5 percent for a normal saving account. From one bank to the next, the interest rate fluctuates.

Choosing a Bank

If you want to open a new account, you should compare Saving Accounts from multiple banks first. You may compare them based on the bank’s reputation, customer service, interest rate, minimum balance, and account kinds. To learn more about a bank’s Saving Account, go to their official website. To make the best option, look at the websites of at least a couple of India’s biggest banks.

Prefer banks that allow you to open a Saving Account online, as this eliminates the need for you to go to the bank in person. Apart from the interest rate, make sure you take into account the bank’s reputation and other benefits before making a decision.

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