What are the different types of Savings Accounts
If you’re looking to get started on your journey of personal finance, a Savings Account is the first and most fundamental financial product needed. A Savings Account can be opened with Commercial Banks, Co-operative Banks and Post Offices. For most people, a Savings Account is one of the first financial products they obtain in their name. But interestingly, there’s not just one kind of Savings Account that’s available. You can choose from different types of accounts to hold your money securely.
Let’s check out the different types of accounts for your savings.
- Basic Savings Account
A Basic Savings Account is a simple type of account that you can open with a financial institution. It simply serves the purpose of holding your money in a secure space. In exchange for this, you get to earn interest on the amount deposited. The rate of interest varies from one bank to another. Basic Savings Accounts often have a minimum balance requirement and you need to take care that the balance in your account doesn’t fall below that limit.
2. Instant Savings Account
An Instant Savings Account is essentially very similar to a Basic Savings Account. The key difference is that while a regular savings Account may require you to physically visit the bank to have it opened, an Instant Savings Account can be quickly opened online with just a few clicks. ICICI Bank’s Insta Save Account, for instance, can be opened based on your Aadhaar details only. It also offers a number of other features like a <12>-month FD and 24x7 app-based access to banking services.
3. Privilege Savings Accounts
Privilege Savings Accounts offer account holders a range of exclusive benefits like unlimited cash withdrawals, discounts on bank locker facilities, priority service at privilege banking zones and a dedicated banker to assist account holders with their queries and requirements. ICICI Bank offers a range of Privilege Savings Accounts that come with varying degrees of exclusive features.
4. Savings Accounts for women
Many leading banks offer Savings Accounts for women customers. These Savings Accounts often come with beneficial offers on skill-building programmes and courses that enable women to be self-sufficient. Like Privilege Bank Accounts, Savings Accounts for women also give account holders exclusive value-added benefits like discounts on lockers, dedicated banking assistance, and preferential rates on loans, among other things.
5. Family Savings Accounts
Family Savings Accounts are types of accounts that enable all the members in your family to address their diverse banking needs through one common platform. It offers account holders a range of benefits over the regular, Individual Savings Account, such as lower minimum balance requirements, added banking privileges and superior benefits like Wealth Management and Private Banking. ICICI Bank’s Family Banking division offers account holders all this and more.
6. 3-in-1 Accounts
These accounts are perfect for investors looking to trade in the markets, because it offers the benefits of 3 accounts from 1 common point. You get to open a Trading Account, a Demat Account and a Regular Bank Account with this product. With the rising popularity of retail trading in the country, many leading banks and financial institutions offer 3-in-1 accounts as a part of their offerings.
7. Salaried Accounts
Salaried Savings Accounts are exclusive products developed for salaried employees. Now, they generally feature all the regular advantages of any other basic Savings Account. Over and above this, Salaried Accounts often also offer the benefit of zero minimum balance requirement. This means that account holders need not ensure that there’s any minimum balance always remaining in the account.
8. NRE/NRO Accounts
These are types of accounts curated for Non-Resident Indians (NRIs). A Non-Resident External (NRE) Account is a bank account opened in India in the name of a Non-Resident Indian. Funds earned in foreign countries can be parked in NRE Accounts. A Non-Resident Ordinary (NRO) Account is also an account opened in the name of an NRI. This account is primarily to help NRIs park the funds they earn in India. Most leading banks in the country offer bank accounts for NRIs.
There are many different types of Savings Accounts in India. And before you choose the kind of account you wish to open, analyse your requirements and select the kind of account that will best meet your needs. It also helps to read up the terms and conditions associated with the account, so you can make use of it optimally.
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