TYPES OF SAVINGS BANK ACCOUNTS IN INDIA

In India, savings bank accounts play a pivotal role in facilitating financial inclusion and promoting a savings culture among individuals. Various banks offer different types of savings accounts tailored to meet the diverse needs of customers.

Let’s explore the common types of savings bank accounts in India –

• Regular Savings Account

Banks offer the regular savings account as the most common and basic account type. It allows individuals to deposit and withdraw money as per their convenience. The account typically comes with a moderate interest rate, and some banks may have a minimum balance requirement.

• Salary Savings Account

Salary savings accounts are specifically designed for salaried individuals. Employers often tie up with banks to provide salary accounts to their employees, which offer various benefits like a zero balance facility, higher transaction limits, and preferential interest rates on loans. 

Know more about SALARY ACCOUNT

• Senior Citizens Savings Account 

This type of savings account caters to senior citizens (usually above the age of 60). Senior citizen accounts often come with additional benefits like higher interest rates, priority customer service, and reduced charges on transactions.

• Women’s Savings Account 

Several banks offer women-centric savings accounts with specific benefits and features. These accounts may include preferential interest rates, cashback offers on shopping, insurance coverage, and discounts on various services.

• Minor’s Savings Account

Designed for children below the age of 18, minor’s savings accounts are usually operated by parents or guardians on behalf of the child. These accounts aim to instill financial discipline and allow parents to save money for their child’s future needs.

• Zero-Balance Savings Account 

Opting for savings accounts with low minimum cash balance requirements is an excellent solution for individuals who may struggle to maintain the specified amount. These accounts allow users to open and manage their accounts without the obligation of maintaining a certain balance. While providing essential banking services like deposits and withdrawals, these accounts typically do not offer additional benefits or interest on the account balance.

Know more about ZERO-BALANCE SAVINGS ACCOUNT

• Digital Savings Account

Digital savings accounts are opened entirely online, without the need to visit a physical branch. These accounts provide the convenience of banking through digital channels and may come with exclusive digital banking benefits.

• Customizable Savings Account 

Certain banks offer customizable savings accounts, allowing customers to select specific features and benefits that best suit their financial requirements. These accounts provide more flexibility in tailoring the account according to individual preferences.

• Joint Savings Account

A joint savings account can be opened by two or more individuals, and is often used by family members or spouses. Joint account holders share access to the account and can make transactions jointly.

• Premium Savings Account 

Premium savings accounts are offered to high-net-worth individuals or premium banking customers. These accounts come with exclusive benefits like personalized relationship managers, premium debit cards, and access to exclusive lounges.

ELIGIBILITY CRITERIA FOR OPENING A SAVINGS BANK ACCOUNT

• Citizenship 

To open a savings account in India, the applicant must be either an Indian citizen or a non-resident Indian (NRI). NRIs can open NRI savings accounts, which have slightly different features and requirements than regular savings accounts.

• Age 

The minimum age requirement for opening a savings account may vary from bank to bank. Generally, applicants must be at least 18 years old or above. Some banks also offer savings accounts for minors, where a parent or guardian becomes the joint account holder on behalf of the minor.

• KYC (Know Your Customer) Documentation 

Banks require applicants to complete the KYC process to open a savings account. The KYC documentation typically includes providing valid proof of identity (such as an Aadhar card, passport, voter ID, etc.), proof of address (like a utility bill, rent agreement, etc.), and passport-sized photographs.

• Minimum Cash Balance Requirement 

Certain banks may impose a minimum cash balance requirement that needs to be maintained in the savings account. This balance may vary from bank to bank and can be different for different types of savings accounts.

• PAN (Permanent Account Number) 

Furnishing the PAN is mandatory for opening a savings account in India. The Income Tax Department issues PAN, a unique ten-digit alphanumeric number that serves as a vital identity proof for financial transactions.

• Source of Income 

While not all banks require this, some may ask for information about the applicant’s source of income, especially if the applicant is opening a high-value savings account.

NOTE – It’s essential to note that the eligibility criteria for opening a savings account can vary from bank to bank and may change over time. Therefore, it is advisable to check with the specific bank where you intend to open an account to understand their current eligibility requirements.

CONCLUSION 

Choosing the right savings account is essential to catering to individual financial needs and preferences. With various types of savings accounts available in India, individuals can select an account that aligns with their specific requirements and offers attractive features, benefits, and interest rates. Before opening an account, it’s crucial to compare the offerings of different banks and understand the terms and conditions associated with each type of savings account.

Know About – TOP 10 SAVINGS ACCOUNTS IN INDIA – 2023