Savings Account is an essential financial product and is a sign of financial inclusivity. To cater to the varied needs of the individuals, banks have introduced different types of savings account for their customers.
Regular savings account, online savings account, zero balance savings account, women’s savings account, children’s savings account and senior citizen savings account are the few popular types of savings account. However, customers of all the different types of savings accounts earn interest on their deposits that is credited to their account on a quarterly basis.
Regular Savings Account
Any individual can open a regular savings account if they are above 18 years of age with valid KYC documents.Most of the savings account have minimum average balance that customers need to maintain every month or quarter to avoid paying penalty. The minimum average balance requirement will also vary from bank to bank. Customers can walk into their nearest bank branch and submit the necessary KYC documents to open the savings account.
Zero Balance Saving Account
Zero Balance Saving Accountis a type of savings account that do not have any minimum average balance. This means that you can use your money from the account without worrying about maintaining any minimum average balance. Zero balance accounts can be opened online or by visiting the nearest bank branch.
Online Savings Account
Thanks to advancement of digital technologyin the banking segment and easy access to internet, people can now easily open a digital savings account online without any paperwork or visiting the bank branch.
You just need your PAN card and Aadhaar card to open an online bank account instantly.
Now, banks offer Aadhaar OTP-based and Video-based KYC online account opening process to their customers. If you open an online savings account through the Aadhaar OTP verification process, you have to meet the bank executive to complete the full KYC process to continue using your account. However, if you open a full-fledged savings account through Video KYC and don’t have to visit the bank branch to complete the KYC formalities.
Customers can open an OTP account at any time of the day including bank holidays while Video KYC account opening process is available during the working hours on bank working days.
Woman Savings Account
As the name suggests, Woman Savings Account is a type of savings account that is exclusively meant for women. This type of bank account offers better perks than a savings account. Woman Savings Account offer attractive offers on online and offline purchases, lower processing fees on loans and low interest on loans among others. Woman Savings Account may also have a higher cash withdrawal limit than a regular savings account.
Senior Citizen Savings Account
This type of bank savings account is meant for senior citizens who are above a certain age limit say 55 or 60 years of age. Senior citizens can earn marginally higher interest on their deposits than a regular savings account. These bank accounts come with additional benefits like accidental hospitalisation cover, discounts on treatments, doorstep banking and dedicated senior citizen desk.
Children or minor savings account
Children or minor savings account can be opened for children and students who are below 18 years of age. Children savings account can help children to inculcate savings habits. Parents can also save money for their children’s future in this savings account. Usually, parents who have an existing relationship with the bank can open this type of savings account.
Parents need to submit birth certificate of the child for age verification. Parents need to share various details such as PAN Card details, address proof to open the bank account.
Conclusion: Thedifferent types of savings account have unique benefits that specifically caters todifferent customers.Explore the different types of savings accounts to select the right savings account for your needs.