Saving Account

You might wonder why it is important to open a savings account. There are several reasons why you should maintain a savings account, but the most relevant reason is that it helps to improve your income. Banks offer interest on one's deposit, thus making it an ideal means of investing one's money. In order to know all information about savings accounts and their importance, keep reading this blog post. Savings accounts have become a popular way people store their income. This type of account is widely used because of its accessibility and ease of opening the account. It's the simplest way to store your money in such a manner that you are able to access it at any time you need. In a savings bank, only limited transactions like deposits, withdrawing, and transferring funds are allowed for safety reasons as well as to ensure the safety of your money.

What is a Saving Account

A savings account is a product offered by the banks, which helps in the savings of the individual's money. It helps the individual earn higher income through interest given by the bank. Some banks pay a specific rate of interest for a specific balance in their Savings Account whereas some sweep all their money and earn interest for them automatically for no extra effort. 

What are the Types of Savings Accounts?

There are several types of savings accounts you can choose from. Most banks have different types of savings accounts to meet different needs. If you have a choice of different types of savings accounts from your bank, then it is important to review the facilities and services offered by each account before making your final decision. 

Let’s discuss some of them here to help you out:

Regular Saving Account: 

Zero Balance Savings Account: Zero Balance Savings Account has its own features. The main feature is it combines the facilities of a savings account and a current account. The balance in the Saving Account does not have to be maintained at all times. There will only be restrictions on withdrawals which means even if the amount of money saved falls below the minimum prescribed, there will be no penalty charged.

Minors Savings Account: There are a number of kids that may not be aware of banking and loans. A kid should be given an opportunity to learn the basics. That's why banks have come up with special accounts for kids. These kinds of accounts do not have a minimum balance requirement. After turning 10 years old, the child is allowed to operate the account on their own. At any other age, the child will have to seek help from their legal guardians in order to make any sort of transaction. As soon as a child turns 18 years old, the account will be converted into a regular savings account.

Senior Citizen Savings Account: A senior citizen savings account is a special bank account meant for people who are above the age of 60. It comes with several benefits including higher interest rates as compared to regular savings accounts and exclusive banking privileges for senior citizens. These accounts are linked to other senior citizen savings schemes so that retirees can consolidate their funds under one single bank account.

Salary-based savings accounts:  Salary-based savings accounts are opened by companies with the help of banks for the purpose of harassing and crediting the disbursement. Such accounts will not be subject to minimum balance requirements. One must note that if the salary is withdrawn in a single month, it is necessary to pay fees. The account will be converted into regular savings account if disbursement is not received continuously for 3 months.

Regular Saving Account: A regular savings account is a little different than your typical savings account. Regular savings accounts are created on basic terms and conditions, which equate to higher interest rates, protection of funds, and hassle-free management of payments. The biggest difference between regular savings accounts and other savings accounts is the frequency with which they are used. In the case of an individual depositing his/her savings into the bank, the sums may not be regular. Instead, it makes more sense to maintain a safe house for money, in the form of a regular savings account.

Women’s Saving Account: For women getting ahead in their careers, a saving account is one of the most significant things to consider when deciding how best to use their money. While every account has its own set of features, interest rates, and requirements, saving accounts designed specifically for women is often a wise choice. As a woman, you may enjoy several benefits if you open a special type of account called a women's savings account. This account is specifically designed for women with special savings benefits and may come with low-interest loan rates.

Compare and Find the Best for Yourself 

Nowadays, most of us don't have the time or patience to drive around the city and find bank after bank to open up a savings account. Besides, these days you can very well do all that online by comparing the rates offered by multiple banks. We decided to do some research for you, and here are the banks that you could compare and apply to for your savings account:

What are the Eligibilities to Apply for a Savings Account

The eligibility of a saving account may differ from bank to bank but the general eligibilities are as mentioned below:

• Residents of India above the age of 18 years can open a Savings Account individually or jointly.
• Foreign nationals and Hindu Undivided Families are eligible 
• Minors can open a Savings Account with their parents/guardians.

What are the Required Document for a Saving Account