The first step we take towards financial savings as we grow up is to start by opening a savings bank account. It can easily be termed as one of the most fundamental financial products needed in the present times. You can open a savings bank account in any of the legitimate banks of the country, post offices and the co-operative banks of India.
Other than gaining profits out of your saved funds another interesting and important fact about a savings bank account is that it comes in different types to fit the needs of the person looking to open one. An individual can opt from the different types of savings accounts, one that suits them and best fulfils their checklist of requirements.
1. Regular savings accounts
The first and foremost is the regular or traditional savings account that can be opened at any financial institution in India. The basic purpose of this bank account is to save your funds in a secure place. In this account when you save funds you are offered an interest amount that can be earned on the saved amount. It has a minimum balance requirement in most cases.
You will have to be aware of the fact that the amount does not fall down the set limit to save yourself from added charges.
2. Zero balance savings accounts
This savings account comes with a twist. As the name suggests if you open a zero balance savings account then you are free from maintaining any minimum balance requirement in your account.
In this account, the bank gives you a privilege to open or even maintain zero balance in your account without any penalty or charges with the added advantage of interest earnings. Also, a point that you must keep in mind is that you cannot open any other savings account in the same bank if you have a zero balance account.
3. Women’s savings accounts
This can be considered a regular savings bank account but as the name says, it is customized to fit the requirements of a woman. This account can be held only by women, and they receive added advantages of rewards and discounts on select stores and items.
However, the minimum balance requirements in such bank accounts are set by the bank and can start from zero balance as well.
4. Kid’s savings accounts
It is a savings bank account that is specially customized to fit the requirements of parents who want to save some funds for their kid’s future. It can be for education, a wedding, or some other plans.
It is also a good way to inculcate money management skills in the child by making him or her a part of it and explaining the banking process to them from a young age. They can also learn what are the different types of savings accounts, how banking works and more.
5. Family savings accounts
This type of savings bank account allows all the members of a family to look for their distinguished banking requirements through one common platform.
The bank account offers the clients a variety of advantages over the regular or traditional Savings Account, such as less minimum balance maintenance, added banking privileges and extra advantages as offered by the banks.
6. Senior citizens’ savings accounts
A Senior Citizen’s savings account is the kind of bank account that is tailor-designed for people who are above the age of 60. The account is created to fit the requirements of senior citizens. The accounts holders of this bank account can avail of preferential rates on fixed deposits as well as insurance benefits. In some of the banks, they can also avail special debit cards.
7. Salary account - salary based savings accounts
Salary accounts are like savings bank accounts but are created for salaried employees of different organizations.
Generally, it has all the features of a basic savings bank account that a person opens in a financial institution but in some cases, it offers zero-balance requirements, which means that a salaried individual does not need to maintain any balance in their salary account and can use all the money as and when required.
8. NRI savings accounts
A NRI Account alludes to the accounts opened by a Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) with a bank or monetary establishment which is approved by the Reserve Bank of India (RBI), to offer different types of assistance. Here are the types of NRI Accounts that you can select, to meet your monetary prerequisites.
- Non-Resident External (NRE) Accounts
- Non-Resident Ordinary (NRO) Accounts
- Foreign Currency Non-Resident (FCNR) Accounts
9. Health savings accounts
The Health Savings Account, as the name says, helps a person in saving funds to look after any health emergency, and in case of any hospitalization or health related treatment, the account will enable you to claim the amount through reimbursement. It offers people with different advantages and is great when in need of any health-related emergency.
These are some of the different types of savings bank account that one can opt for as per the requirements and needs. You can also choose a bank and talk to the relationship managers for best advice on which account suits your requirements the best.
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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
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