Savings bank account has a simple concept. It is an interest-bearing deposit account held with financial institutions like banks or NBFCs. It canbe opened with thelender of your choice, wherein you can park your surplus fund in it. However, there are distinct types of savings accounts designed for distinct purposes.
Checkout some of the common savings account types here.
Regular savings account
Regular savings account is opened to serve the purpose of holding your fund in a secure place. In exchange, you earn interest on the parked amount. Interest rates differ from one financial institution to another. Regular savings accounts usually have the requirement for a minimum monthly average balance (MAB) and hence you need to ensure that your balance in your bank account does not fall below the MAB. In case it falls below the MAB, you will have to bear a penalty.
Basic savings account
Basic savings account provides access to banking without the need to maintain any minimum amount balance. Some crucial benefits of basic savings accounts involve free debit card, free passbook facility and on request, availability of mobile and internet banking.
Instant savings bank account
Instant savings bank account is like a basic and regular savings account. Major difference is that while the regular savings bank account might need you to visit the bank for opening it, an instant account can be immediately opened online from the comfort of your home with minimal documentation.
Many leading financial institutions have curated a savings bank account just for women. Such savings accounts provide beneficial offers in the form of discounts on lockers, preferential rates on home loan, personal loan and car loan, dedicated banking assistance etc.
Family savings account
Family savings bank account is an account that allows all family members to address their various banking requirements through a single platform. Such accounts come with a range of benefits like discount on locker, lifetime free debit card, free cash withdrawal at any bank ATMs, etc.
Such types of savings accounts are curated for the NRIs (Non-Resident Indians). NRE (Non-Resident External) account is opened in the name of NRI, which is used to park funds earned in the foreign countries in such accounts. NRO (Non-Resident Ordinary) account is also an account opened in the NRI’s name to park funds earned in India. Most leading Indian banks offer this account for NRIs.
Salary account is an exclusive product particularly formed for the salaried individual. Such an account usually offers all the same benefits of a regular savings account. Over this, a salary account comes with an additional benefit of zero minimum monthly average balance amount (MAB) requirement.
There are different saving account types in India. Except the salary account that is opened by your employer, the remaining types of savings accountsare opened by you as per your requirement and preference. For opening any type of savings bank account, you must run an in-depth review and select the account that best matches your requirement. Before choosing any savings account type also ensure to read its terms and conditions to make an informed decision.