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Savings Account is the oldest and most common form of savings. The reason behind people preferring a savings account over any other form of savings is that here the principal amount is always safe no matter how much interest is earned. It can thus be said that the convenience of keeping the money in a savings bank account and earning interest is also the simplest form of investment.
Savings Account: Features & Benefits
Even though there are so many options to save money, the charm of Savings Account is still noticeable. Zero balance savings account has also got so much attention for its advantage of having the privileges of a savings account without maintaining any minimum balance in it. The features and benefits of Savings Account are as follows
- Safe and secure way to save money
- You can earn interest up to 8% per annum
- There is no minimum balance requirement for zero balance accounts
- Any Indian resident with valid ID proof can open this account
- There are no restrictions on how many bank accounts you can have
- You get ATM withdrawal option and Netbanking
- You can open a joint account with your family member
- Debit card issued can be used for payments
What is the minimum balance for a Savings Account?
The minimum balance required to maintain a savings bank account is subject to change from one bank to another just like the rate of interest. There are mainly two types of savings account - regular savings account and zero balance savings account. Banks have a certain minimum balance limit which an account holder has to maintain else he/she has to pay the penalty.
However, with the changes in other banking products, a savings account has also seen a major shift from being minimum balance account to zero balance savings account . Many banks now offer zero balance savings account due to increased demand as compared to the age-old pattern of keeping thousands in the bank account to avoid penalties. The savings account interest rate on these accounts are also high which makes it even more appealing.
List of All Banks Savings Account Interest Rates and Minimum Balance
|List of Banks||Minimum Balance Required(INR)||Interest Rates (p.a.)||Features|
|Allahabad Bank Saving Accounts||1000||3.00%||
|Andhra Bank Saving Accounts||0/5//100/1000||3.00%||
|Axis Bank Saving Accounts||0/10000/25000/100000||3.50% - 4.85%||
|Bank of Baroda Saving Accounts||0/5/1000||2.75% - 3.00%||
|Bank of India Saving Accounts||500/5000/10000/20000/100000||3.00% - 3.25%||
|Bandhan Bank Saving Accounts||0/2000/5000/25000/100000||4.00% - 7.15%||
|Bank of Maharashtra Saving Accounts||1000||2.75%||
|Canara Bank Saving Accounts||500/1000||3.00%||
|Central Bank of India Saving Accounts||50||2.75% - 3.00%||
|Corporation Bank Saving Accounts||0/250/500/2500/15000/100000||3.00%||
|Dena Bank Saving Accounts||0||2.75% - 3.00%||
|Dhanlaxmi Bank Saving Accounts||0/5/1000/5000/10000/25000||3.50%||
|Digibank Saving Accounts||0||3.50% - 6.00%||
|Federal Bank Saving Accounts||0||2.25% - 3.65%||
|HDFC Bank Saving Accounts||2500/5000/10000/25000||3.00% - 3.50%||
|ICICI Bank Saving Accounts||0/1000/2000/2500/5000/10000||3.00% - 3.50%||
|IDBI Bank Saving Accounts||500/2500/5000||3.30% - 3.80%||
|IDFC Bank Saving Accounts||25000||6.00% - 7.00%||
|Indian Bank Saving Accounts||250/500/1000||3.00%||
|Indian Overseas Bank Saving Accounts||500-1000||3.25% - 3.50%||
|IndusInd Bank Saving Accounts||0/10000/25000/2500000||4.00% - 6.00%||
|Jammu & Kashmir Bank Saving Accounts||0/500/1000||3.00%||
|Karnataka Bank Saving Accounts||0/500/1000/2000||3.00% - 5.00%||
|Kotak Mahindra Bank Saving Accounts||0/2000/3000/5000/10000/20000||Upto 4.00%||
|Lakshmi Vilas Bank Saving Accounts||1000/3000/5000||3.25% - 6.00%||
|Oriental Bank of Commerce Saving Accounts||0/500/1000||3.50% - 3.75%||
|Punjab National Bank Saving Accounts||500/1000/2000/50000||3.50% - 3.75%||
|Punjab and Sind Bank Saving Accounts||500/1000||3.10% - 3.50%||
|South Indian Bank Saving Accounts||0/2500/5000||2.35% - 5.00%||
|State Bank of India Saving Accounts||0/1000/2000/25000||2.70%||
|Syndicate Bank Saving Accounts||0/100/500/1000||3.00%||
|UCO Bank Saving Accounts||0/100/250/500/1000/1500||2.50% - 2.75%||
|Union Bank of India Saving Accounts||0/20/100/250/500/1000||3.00%||
|United Bank of India Saving Accounts||0/50/100/500||3.50% - 3.75%||
|Vijaya Bank Saving Accounts||500/1000/2000||2.75% - 3.00%||
|YES Bank||0||Upto 6.00%||
How to Open a new Savings Account Online
The procedure for online savings account opening with zero balance is very simple through Wishfin. The portal allows paperless process with no upfront verification. There is instant approval facility available which makes the zero balance savings account opening process the easiest thing ever. The details required to apply for online savings account are as follows:
- Full name
- Mobile number
- Email ID
Once the above details are provided, the applicants can compare different banks offering a zero balance savings account with zero balance and then apply for the bank as per the choice. The complete process just takes a few minutes.
Savings Account Interest Calculator
Savings Account interest calculator can be used to calculate the estimated investment growth over time. It helps you set a goal and then save money accordingly. The calculation can be done by mentioning the annual interest, invested amount and time period. For a shorter time period, you need to invest more money and vice versa.
Difference between Savings and Current Account
Savings account and current account have some similarities as well as some differences. A current account, on one hand, is one of the important things to have for businessmen as it allows a higher number of transactions on a regular basis as compared to the savings account. There is no interest provided by a current account by most of the banks but the overdraft facility can be availed easily. The minimum account balance (MAB) required on a current account is also very high as compared to the savings account. For better understanding, have a look at some of the basic difference between savings and current account.
|Features||Savings Account||Current Account|
|Type of Account||Deposit Account||Daily Transactions|
|Minimum Balance Amount (MAB)||0||Minimum ₹10,000|
|Interest Rate||Up to 7%||NIL|
|Free Transactions Allowed||Limited||Unlimited|
Thus, savings account, especially online savings account, is suitable for anyone who wants to earn interest on their deposits. Current account, on the other hand, is preferred by the individuals and firms who require monetary transactions on a day-to-day basis. Also, the highest savings account interest rate can be earned on a zero balance savings account and not on a regular bank account.
Open Zero Balance Savings Account Online at Wishfin
For an online bank account opening with zero balance at Wishfin, the only details required are your full name, mobile number, email address and your residing city. The Wishfin portal allows instant and paperless process of zero balance account opening online which makes the complete process hassle-free. Once you provide the above information, you can compare the various zero balance savings account opening from different banks and choose the best zero balance account online.
Different Bank Saving Accounts with Higher Interest Rates
SBI Savings Account: SBI online account opening procedure is quite easy as it can be done both on the website or by using the SBI YONO application. SBI account opening online is done at 2.70% interest rates with no limit on maximum balance. To open SBI account online, you can visit the official website of the bank or download the SBI YONO application. The SBI new account opening online comes with benefits like safe deposit lockers, nomination facility, auto-sweep facility with SMS alerts and many more.
HDFC Bank Savings Account: HDFC zero balance account opening online can be done at 3%-3.5% interest rate. The HDFC minimum balance for savings account can be Rs 2500, Rs 5000, Rs 10,000 or Rs 25,000. The HDFC bank zero balance account comes with customized banking service and no annual maintenance charges for the first year. HDFC online account opening is an easy process and comes with safe deposit lockers.
Axis Bank Savings Account: Axis bank zero balance account can be opened instantly. Axis Bank account opening is easy and you can get your account number instantly. The Axis bank savings account minimum balance can be axis zero balance account, Rs 10000, Rs 25000 or Rs 1,00,000. The axis bank savings account comes with an interest rate of 3.50% to 4.85%. The Axis bank online account comes with an auto FD feature for balances above Rs 10,000.
ICICI Bank Savings Account: The ICICI zero balance account will get you added benefits of ICICI EPF account. The ICICI zero balance account opening online can be done instantly and you can choose your own account number. The ICICI bank zero balance account comes with mobile banking and contactless mobile payments. The ICICI bank account online comes with an interest rate of 3% to 3.5%.
Bank of Baroda Savings Account: The Bank of Baroda online account comes with the benefit of zero balance account. The Bank of Baroda online account opening minimum balance can be Rs 500 or Rs 1000. The Bank of Baroda zero balance account comes with an interest rate of 2.75% to 3%. The Bank of Baroda account opening comes with the benefits of unlimited chequebook facility and free debit card.
Kotak Mahindra Bank Savings Account: The Kotak Mahindra Bank account opening has a digital bank account. The Kotak Mahindra Bank online account opening can be done 24/7 through Kotak 811 plan. The Kotak Mahindra Bank zero balance account opening online can be done instantly with the help of your Aadhaar card, at the interest rates of up to 4%.
Union Bank Savings Account: The Union Bank of India account opening can be done at the interest rates of 3%. The Union bank of India savings account comes with added benefits of free accidental insurance, banking facilities, reward points on debit card spend, free ATM and many more.
Frequently Asked Questions (FAQs)
Below are some of the queries frequently asked about a savings account.
You can check your Savings Account balance through ATM, NetBanking, SMS and Passbook.
India Post also facilitates internet banking service through DoP internet banking. You can check your account balance or for any other banking services, you can login through its internet banking portal with the help of a username and password.
Under Income Tax Act 80TTA, interest up to INR 10,000 is exempt from tax. For senior citizens, the tax exemption on a savings account interest rate is up to INR 50,000 under Income Tax Act 80TTB.