Types of Savings Accounts
Last Updated : April 10, 2021, 6:02 p.m.
Whenever the discussion on the types of bank accounts, the first name that comes across most is a savings account that helps to park money and earn interest on the same. The interest, which is given on a daily basis, gets credited quarterly. Adding a greater degree of flexibility and convenience, banks offer several types of savings account to appeal a wide range of customers. These accounts can be offered to a single individual or more than one. Depending on the accounts one may have, the mode of function and operation varies. So, are you ready to be detailed on the types of savings accounts? If so, then be explained in this article.
Types of Savings Accounts
You can choose from any of the following savings accounts , depending on your likes and applicability.
- Basic Savings Bank Account
- Salary Account
- Senior Citizen Account
- Women’s Account
- Minor Account
- Joint Account
- Post Office Savings Account
- Pradhan Mantri Jan Dhan Yojana Savings Account
Basic Savings Bank Account – This is the most common form of a savings bank account wherein you are required to maintain a minimum average balance as specified by a bank. On failing to maintain the balance, banks can debit a penalty from your account. You could even find a savings account with a zero balance facility, means there’s no requirement to maintain a specific balance in the account.
Salary Account – Salaried professionals can relate to this type of savings account as their remuneration is credited here month-on-month. The beauty of this account is that there’s no requirement to maintain a balance. Plus, you can enjoy benefits that you experience in a normal savings bank account, such as fund transfer, mobile recharges, utility bill payments and much more.
Joint Account – A joint account is opened for more than one individual, maybe two or more. Either all the account holders or only one or few of them can withdraw the money. Similarly, debit cards can also be issued separately to the account holders with their names printed on the plastic device. Based on how you fill the standing instructions in the form, the services and privileges can be offered accordingly.
Minor Account – Offered for individuals aged below 18 years, the account would have a parent or a guardian of the minor. In this case, minor won’t get debit cards, internet banking access and other banking privileges. These privileges, however, can be granted to the account holder acting as minor’s parent or guardian.
Senior Citizen Account – Going by the name, individuals attaining more than 60 years of age are the ones only who can open this account. These accounts come with benefits like higher interest rates on deposits, no minimum balance requirement, etc. So if you or your parents come under the category of senior citizens, the account can help maintain the savings and raise interest income with higher rates.
Women’s Account – As the name suggests, this type of savings account is exclusively for women. Often the account comes with special interest rate offers, attractive insurance cover, etc.
Post Office Savings Account – You can open this account in cash only. In an account with no cheque facility, a balance of ₹500 is to be maintained. If you want the account with a cheque facility, the account has to be opened and maintained for a sum of ₹500 each. The interest you earn is tax-free up to ₹10,000 for each financial year u/s 80TTA of the Income Tax Act, 1961.
Pradhan Mantri Jan Dhan Yojana Account – There's no requirement to maintain a minimum balance in your account, making it accessible to everyone. You'll earn interest on your deposits every month, helping your money grow. A free ATM or RuPay debit card is provided for convenient access to your funds. New PMJDY accounts opened after August 28th, 2018 come with an enhanced accidental insurance cover of Rs. 2 lakhs (increased from Rs. 1 lakh). Eligible account holders can avail an overdraft facility of up to Rs. 10,000, providing a financial safety net for unexpected needs.
Eligibility Criteria for Savings Account
The basic eligibility criteria required for a Savings Account is that you need to be more than 18 years old and have valid ID proof.
- Any Indian resident
- By parents or guardians on behalf of minors
- Hindu Undivided Family (HUV)
Documents required for Savings Account
The list of documents that you need to open a savings account are mentioned below:
- Proof of identity – Passport, Voters’ ID, Aadhaar card, etc.
- Proof of address – Passport, Driver’s license, Aadhaar card, etc.
- PAN card copy
- 2 passport size photographs
How to Open a Savings Account Online?
You can open a savings account online by visiting the official website of the bank where you are interested to do so. Search the application form online and mention a few personal details there. In addition, you may have to upload your identity and address proofs online. The bank will scrutinize the details and may even send an executive to your residence to check the authenticity. Once the bank is assured on the KYC, it can intimate you regarding the opening of an account.
How to Open a Savings Account at Branch?
The savings account can be opened even at the nearest bank branch. You need to go there, ask for an application form, fill the relevant details and submit it along with your recent photographs and documents to the concerned official to process your case. The KYC details will be checked thoroughly before you get the news of account opening.