Can you find someone without a savings account today? Obviously no. It is more than just essential today. It is the most popular type of bank account that there is. Now many might be wondering type, and to your surprise, there are various types of savings account a bank offers. Here we are going to discuss the different types of savings accounts that a bank offers along with their features.
Table of Contents
Why Are There Different Savings Accounts?
Now, if you are a salaried employee, you have a salary account. A salary account does not entitle you to any sort of interest as it is opened by your employer. But did you know that there is a salary and savings account combined? In your savings account, you would be entitled to certain interest rates and different types of features, and for every type of savings account, the interest percentage would change. It is similar to a PPF account. PPF accounts have interest accrued on your investment too. The accounts interest rates change according to the financial state and laws. I bet you know the PPF current interest rate and how much you would be making. But when was the last time you checked your saving account’s interest rate?
Different Types of Savings Account
1) A Regular Savings Account
This is the most basic and widely used type of Savings Account. A standard Savings Account requires you to keep a minimum account balance. This account is ideal for your day-to-day banking requirements.
2) Family Savings Account
Another variation on the traditional Savings Account, this sort of account allows a full family to benefit from a single Savings Account.
3) Senior Citizen’s Savings Account
This sort of Savings Account is designed specifically for the needs of senior citizens and typically includes health and investment incentives. Account-holders can receive insurance advantages and favorable rates on fixed deposits.
4) Salary Account
These are typically formed by banks at the request of large firms and companies as a systematic method of dispersing employee salaries. Employees, on the other hand, handle their own accounts. They are not normally required to keep a minimum balance here. On the date of salary disbursement, the bank withdraws funds from the company’s account and distributes the associated amount to the employees’ accounts.
5) Women’s Savings Account
This is a standard Savings Account that has been tailored to women’s needs. Of course, a minimum balance is required. Account-holders, on the other hand, receive various perks for shopping and other transactions.
6) Zero Balance Account
This is identical to a conventional Savings Account, but unlike that account, there is no minimum balance requirement for this account. It does, however, include an ATM/Debit Card for day-to-day transactions.
7) Kids Savings Account
This is a Savings Account designed specifically for parents who want to set aside a certain amount of money for their children. Also, if the parent decides to give the child access to the account via a debit card, this is a fantastic approach to teach children about money management.
What are the Benefits of a Savings Account?
– It is safe
A Savings Account is a secure way to store money. Unless withdrawn or paid out, funds in a Savings Account remain there. That is why a Savings Account pays such a low rate of interest. A Savings Account, on the other hand, is liquid in the sense that the customer can withdraw money up to a certain amount at any time during the month. This is especially advantageous for paid employees and senior residents, who can withdraw their monthly costs and receive interest on the remaining sum.
– You have Added Services
Many banks now offer value-added services and perks in conjunction with a Savings Account. Several banks provide discounts on merchant purchases, as well as cashback or reward points on ATM cum debit cards. In addition, many banks offer some basic kind of accident or medical insurance, foreign travel insurance, and other sorts of insurance coverage when opening a bank account. You can obtain more value by selecting an account that offers these benefits. A Savings Account also includes a passbook, online banking, and a chequebook.
– Easy to Collect Funds and Make Payments
A Savings Account is a wonderful location to save money from several sources. There are no limits on the number of cheques that can be deposited, issued, or paid from a Savings Account. This makes owning and operating it simple.
– It is Income Generating
A savings bank, unlike a current account, earns interest. The balance in a Savings Account contributes to an individual’s income. Some banks provide greater interest rates for keeping a larger balance, while others offer a sweep in service that allows you to generate more interest income.
Conclusion
A savings account is more than important, today. Moreover, without a proper savings account, it would never be possible for you to keep track of your finances. A savings account is a source for you to keep up with your financial goals. You can benefit from the different types of savings account and choose one that would benefit and suit you the most.