As the name suggests, all types of savings accounts are financial products where one can save money. These are the bank accounts that permit one to deposit money in the account and enjoy a modest interest rate. It is a decent spot to save money for a later date, separate from ordinary spending money, for safety, unwavering quality and liquidity. These accounts are an excellent spot for your emergencies or reserve funds for more limited term objectives, like a vacation or home repairs or reconstruction. These accounts are advantageous as they act as a quick spot to get money. But, they are also preferred over checking accounts due to the high-interest rate provided. 

Advantages of Savings Bank Account

  • High-liquidity: One of the most appreciated advantages of a savings bank account is that with a savings account, you can withdraw money from an ATM anytime. This is because there is no lock-in period for the money in this account. 
  • Safe option to save: Carrying cash might make it prone to getting stolen or lost. But, a savings account is a piggy bank, just a safer one. 
  • Earn interest: Unlike a checking account, a savings account offers a high-interest rate. 
  • Enjoy debit card offers: Most savings accounts accompany a debit card you can use for shopping, whether online or in stores. This implies you won’t have to convey cash with you consistently. Banks additionally offer limits on selected brands and cashback offers on debit card buys, which you won’t get while paying cash. 
  • Provides money quickly during emergencies: This account is an optimal spot for you to store your emergency money. It teaches the propensity for saving. These assets fill in as a reinforcement if you require cash for unexpected costs like medical purposes. In such cases, these accounts will help you get money instantly and without many formalities. 

The Several types of Savings Account

Salary Savings Account

For salaried professionals, this type of savings account is specially designed. Usually, these accounts are opened for the employees by their employers to transfer salaries. 

Features 

  • Does not require a minimum balance
  • The account holder is provided with a passbook, cheque book, debit card, monthly e-statements, phone banking facilities, credit card offers, and net banking access.
  • It can be utilized to pay utility bills and transfer funds.
  • Account-holders are provided with multiple loan offers.

Regular Savings Account

These are the most basic types of savings account where account holders can deposit money and enjoy interest on it. 

Features 

  • Account-holders can earn interest on the money deposited 
  • Permits the user to withdraw money anytime and from anyplace
  • Users can utilize debit cards for online, offline and ATM transactions
  • Users are granted access to the net and mobile banking
  • These accounts require the user to maintain a minimum balance to avoid penalties
  • For tracking and making payments, account holders are provided with a passbook and cheque book

Zero Balance Savings Account

These savings accounts do not require the holder to maintain a minimum balance. 

Features

  • These account holders are not charged with ATM or debit card transactions
  • Zero balance savings accounts are the best option for people who earn just enough to meet their needs
  • A cheque book, passbook, debit card and other services are provided to the users

Family Savings Account

As the name suggests, these are the accounts where individual family members deposit their savings into a single account. The members of this account are provided with a Family ID to access the account. 

Features 

  • If the minimum balance is not maintained, the primary account holder has to bear the penalties
  • The account can be dissolved with the consent of every member of, the primary member who wishes to leave
  • These accounts allow balance sweeping

Kids Savings Account

This is an account for kids who can use it under 18 years. To ensure a minimum balance, this account must be with the account of a parent or guardian. 

Features

  • Inculcate money-saving habits in kids
  • With daily withdrawal limits, a debit card is issued to the kid
  • The benefits of a kids savings account are the same as that of a traditional savings account
  • After the age of 18 years, this account must get converted to a regular savings account

Senior Citizen Savings Account

This account is designed specifically for people above the age of 60 years. The account holders can earn high-interest rates on deposits in these accounts.

Features 

  • Citizens above 60 years of age can open these accounts and enjoy tax breaks.
  • Under the Voluntary Retirement Scheme, citizens above 55 years who have taken early retirement can also open these accounts.
  •  If meeting all requirements, retired military personnel are also eligible to open a senior citizen savings account.
  • Individuals can also open a joint account with their spouses. 
  • NRIs and HUFs cannot open this account.

Conclusion

One might have heard of the HDFC savings bank account or other bank and confused them with a checking account. But, savings accounts differ from checking accounts. These are the accounts where the account holder can deposit and save money. Savings accounts are also beneficial due to the high-interest rates it provides to the users. Also, there are numerous types of savings account from which one can choose to open an account based on their necessities and eligibility.