What are the Different Types of Savings Account?
The concept of Savings Account is simple. It is an account with a bank of your choice, where you can deposit a part of your income as savings. There are, however, different types of Savings Accounts. Usually, these are simple variants of the main idea. Most banks have similar variants, depending upon the applicant. Here are some of the variations of Savings Accounts you can find at any bank:
- Regular Savings Account
This is the simplest and most common type of Savings Account. With a regular Savings Account, you will have to maintain a minimum account balance. This account is perfect for your day-to-day banking needs.
- Zero Balance or Basic Savings Account
This is similar to the regular Savings Account, but unlike that account, you are not required to maintain any minimum balance for this account. It does, however, come with an ATM/Debit Card for your daily transactions.
- Women’s Savings Account
This is a regular Savings Account customized to fit the requirements of women. A minimum balance is, of course, required. But the account holders get certain benefits for shopping and other transactions.
- Kids’ Savings Account
This is a Savings Account tailor-made for parents who want to put away a certain sum of money for their children. Also, should the parent decide to allow the child access to the account through the debit card, then this is a good way to inculcate money management skills in children.
- Senior Citizens’ Savings Account
Provided solely for senior citizens’ requirements, this type of Savings Account usually comes with health and investment related benefits. Further, account holders get insurance benefits and preferential rates on fixed deposits.
- Family Savings Account
Another variant of the regular Savings Account, this type of account allows an entire family to enjoy the benefits from one Savings Account.
- Salary Account – Salary Based Savings Account
These are usually opened by banks on the request of large corporations and companies, as an organized means of distributing their employees’ salaries. However, the employees handle the accounts themselves. They are usually not required to maintain a minimum balance here. On the date of disbursement of salaries, the bank withdraws the money from the company’s account and distributes the attributed amount to the accounts of the employees.
If you look around, you will find different types of Savings Account, with different names and slightly different benefits and features, but they are all pretty much minor variations of the above-mentioned accounts. Sometimes, banks will also offer Savings Accounts under a government scheme.