What Are The Different Types Of Savings Account

Keeping expenses under control, and saving your hard-earned money is inevitable today. Banks help you do that with a savings account, which is a type of bank account that enables you to keep your money securely for later use.

How about stashing some money in this account to meet your short-term needs? The one with a good annual personal yield (APY) can help pay off your debt or make a down payment on a home. To help you, there are different types of savings account, and they are designed for different purposes. Here are some common ones explained to help you compare, and choose the appropriate one.  

1. Regular or Traditional

Most people prefer regular savings account to save money for meeting short-term or long-term needs. All banks offer this online bank account to help customers receive their pay, which is usually deposited in customers’ bank account. You are required to maintain a minimum deposit in this regular savings product, and it helps you earn interest too. However, there are restrictions in the number of withdrawals you can do without a fee in a month.

2. Corporate Salary Account

A salary account is generally preferred by organizations to credit their employees’ salary. Like the regular savings bank (SB) account, you can operate this account, but you are not required to maintain minimum balance. Your salary account is credited every month with the specific amount as agreed, and you can withdraw all the money keeping a zero balance.

The salary account may become a regular SB account if you do not receive salary for 3 consecutive months. In such a case, you are required to maintain a minimum balance to save you from penalty.

3. Basic Savings or Zero Balance Account

With the basic savings account, you can have all the facilities of a regular account, except for no minimum balance requirement. You can avail easy banking online, use debit cards, download e-statements, and many more, without any fees for the services. Nevertheless, you cannot hold or open any other SB account in the same bank if you have this account. 

4. Senior Citizens’ Savings Scheme Account

Anyone who is above 60 years old can open a senior savings scheme account. It comes with several privileges such as health benefits, a high interest rate, a special debit card, free insurance and preferential rates on recurring and fixed deposits. For instance, IDFC FIRST Bank offers an account for senior citizens with lifetime free-health benefits, which include a free-health check-up once, free pharmacy voucher, personal accident insurance and easy access to leading diagnostic centers or hospitals.

5. Women’s Savings Account

Most banks have women savings account designed to benefit women in several ways. You can enjoy many complimentary offers like vouchers for shopping, beauty products and treatments, and movies, as well as health benefits. However, the account requires you to maintain a minimum balance.

6. NRI Account

This is opened by non-resident Indians who are abroad on an employment, studies or vocation. The NRI account offers several benefits such as the best exchange rates, high rate of interest, easy fund transfer, tax exemption, and more.

7. Children’s Savings Account

With this customized account, parents can set aside some money for their children. As a parent, you can operate the account on behalf of your child, and avail several benefits like the free e-statements and passbook, insurance and debit card. By having minor savings account, your child will know the value of saving money and learn to concentrate on priorities.

8. Savings Account for Students

Students who study in recognized or premium educational institutions are offered this Future FIRST Savings Account. As an account holder, you can enjoy a range of banking services such as free fund transfers, Visa Platinum debit card, complimentary Times Prime membership, and more.

9. Savings Account for Indian Armed Forces

With this Honour FIRST Defence Account, Indian army, air force, navy, paramilitary personnel and veterans are honoured for their sacrifice to the country. The savings account offers them several benefits like free personal accident, child education and girl child marriage coverage; lost card liability; and air accident insurance.

10. 3-in-1 Savings Account

It consists of three accounts, which are a trading, demat and savings bank account. They are linked together to allow you to invest and conduct seamless transactions in various financial assets such as currency, equity and commodity.

Thus, you can find several types of savings accounts, and you should remember that choosing one is based on what your financial goal is and not just picking one. You can open a savings account online with IDFC FIRST Bank and enjoy numerous benefits. 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.