Types of Saving account in India: Regular savings account, Senior citizen savings account, Salary savings account, Children or minor savings account, Women’s savings account.
Everyone in today’s world has a bank account. The majority of these persons have a savings account. But did you realise that there are several different sorts of savings accounts?
There is a savings account for working people, a savings account for the elderly, a savings account for women, and a savings account for children. In this way, there are a total of six different types of savings accounts. Let’s have a look at them.
1) Regular Savings Account
It can only be opened if some basic prerequisites are met. There is no regular deposit of any fixed amount in this sort of account; instead, it is utilised as a safe house where you can just keep your money. In this, there is also a criterion of minimum balance.
2) Salary Savings Account
Banks open these accounts on behalf of businesses for their employees. This type of account earns interest from banks. It is used to pay employees’ salary. When it’s time to pay the salary, the bank takes money from the company’s account and deposits it into the employees’ account.
This account does not have a minimum balance requirement. After three months, the salary is converted into an ordinary savings account.
3) Zero Balance Savings Account
This account combines the benefits of both a savings and a checking account. This has a withdrawal restriction; you cannot withdraw more money than the average limit. If the balance is less, however, there is no penalty.
4) Minors Savings Account
This is for kids, thus there is no need for a minimum balance. This savings account is designed to suit the children’s banking needs for their schooling. This sort of bank account can only be opened and operated with the help of a legal guardian. When the youngster reaches the age of ten, he is able to manage his own account. When the youngster reaches the age of 18, the account is transferred to a regular savings account.
5) Women’s Savings Accounts
These bank accounts are specifically built with women in mind. There are many various types of features in this. Women are given reduced interest loans, free demat account opening fees, and discounts on a variety of products.
6) Senior Citizens Savings Account
It functions similarly to a conventional savings account, but gives senior citizens better interest rates than regular savings accounts. As a result, only senior citizens should open this account because the interest rate is higher. This bank account is also linked to senior citizens’ savings accounts, from which funds are withdrawn from pension funds or retirement accounts to meet necessities.
