Types of savings account

Money is definitely a key source for leading a healthy and stable life. Therefore, experts suggest to lock the funds in some savings account to reap interest on the balance without risking the account deposits. When it comes to choosing the right savings account, people often get confused due to several loan types and schemes. So, here we bring a consolidated detail about the types of savings account in the banking sector.

Regular savings account : A regular savings account is a basic bank account designed to safely park your hard-earned money while earning some interest. However, such accounts generally have certain restrictions in regards to the number of transactions. Several mainstream banks and non-banking financial institutions offer savings account facility to its customers and typically pays competitive interest rates ranging from 4% to 8%.

Salary savings account : At a glance, many people confuse themselves believing that both savings and salary accounts are same, though this is not the case. Basically, salary account is opened by the employer to credit their employees’ salary in a specific bank account. Another different feature is that there is no minimum balance maintenance criteria in a salary account, hence it is sometimes also called as zero balance account. This account is particularly suitable for salaried individuals. In addition, a salary account has more flexibility to access funds than the savings account, plus there is no restriction on the number of transactions.

Senior citizen savings account : Senior citizen savings account is a savings instrument specifically designed to provide financial assistance to the senior citizens aged above 60 years. This is an effective tool for long-term savings offering highest of safety and several other privileges. The deposits in the account mature after 5 years, which can be further extended to additional 3 years. Compared to other types of savings account, senior citizen savings account pays highest interest rate at 8.6% annually. Also, it is a government-backed scheme, thus, the terms and conditions remain same regardless of the bank or post office you deposit funds within.

Kids’ savings account : Being a minor doesn’t mean that an individual cannot have a bank account. There are several banks and financial institutions that have specifically designed savings account for minors. In this digital era, it is easy to introduce your child to modern-day banking and promote savings habit among them to responsibly spend their pocket-money. However, since there are different schemes offered by the banks, it is essential to check the child’s eligibility before zeroing on a particular savings scheme such as, age of the child and banks’ minimum entry age criteria. Meanwhile, it is also significant to look after the features offered under the scheme such as internet banking, complimentary debit card and its withdrawal limit, fund transfer, nominee facility, minimum balance requirement, etc.

Women’s savings account – Women’s savings account is a special instrument featured with numerous benefits for women. Basically, savings account is a first banking experience and this account is designed to provide unmatched banking experience to its female customers. However, before choosing the women savings scheme, make sure to compare the security, feasibility, and its features along with certain other benefits. In addition, women savings account reaps higher interest rates than usual savings account and provides exclusive pre-approved loan and credit card offers at competitive rate of interest.

Final words: – Savings account definitely promotes to park your hard-earned funds into a safe and secured banking product, plus it also allows you to keep better financial management. So, due to ample of savings vehicles, it is wise to do a little research to help you go a long way.

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Well, we have heard instructions from our elders to keep some cash readily available as emergencies can hit the door anytime with no warning or alert. In addition, till now we have definitely learned about the importance of following a good saving habit. Hence, while planning to open a savings account, make sure to do a thorough research to zero down on a scheme that suits best to your needs along with providing financial security in long-run.

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