Types of Savings Accounts: Know them all
3 min read
Jan 15, 2024
Savings Accounts are the best way to start saving your money and make it grow via interest. Also, they are the easiest way to access funds at any point in time.
There are multiple Savings Account options available, each designed to meet specific financial needs and goals. There are Savings Accounts specifically designed for kids and senior citizens as well! Let us learn the nuances of various kinds of Savings Accounts.
What are the different types of Savings Accounts?
Regular Savings Account
A cornerstone of personal finance, Regular Savings Accounts offer a secure and straightforward way to save. Many savers choose these accounts for their convenience and ease of access. They are ideal for day-to-day transactions, providing a reliable and convenient way to manage your funds. You need to maintain a specific minimum balance to operate this account.
Zero Balance or Basic Savings Accounts
Basic Savings Accounts with no minimum balance requirement cater to those who desire simplicity and minimal banking services without the worry of maintaining a balance. They are also known as Zero Balance Savings Accounts. They are particularly beneficial for students, low-income individuals, or those who prefer minimal banking services. Axis Bank’s Amaze Savings Account , a Zero Balance Savings Account, offers additional benefits such as automatic issuance of an instant virtual debit card, zero charges on domestic banking transactions and various discounts and welcome benefits.
Corporate Salary Accounts
Specially designed for working professionals, Salary Accounts are typically opened by employers. These accounts often come with benefits such as not requiring a minimum balance, making them a smart choice for salaried individuals. Some accounts may also offer additional benefits like complimentary credit card, various insurance plans or preferential rates on loans, adding value to your financial portfolio.
Children’s Savings Accounts
Children's Savings Accounts serve as an educational tool, teaching the habit of saving to kids. They often come with engaging features and incentives to make saving a fun and rewarding experience for the younger generation. Axis Bank offers the Future Stars Savings Accounts which comes with benefits of low opening deposits, low average monthly balance requirement, free chequebooks and personal accident insurance cover etc.
Women's Savings Accounts
Recognising the unique financial needs of women, Women's Savings Accounts offer customised features such as lower fees, higher withdrawal limits and added benefits, empowering women in their financial journey. They may also provide additional perks like discounts on certain retail products or services and special insurance coverage.
Senior Citizens’ Savings Accounts
Keeping in mind the needs of the elderly, Senior Citizens’ Savings Accounts offer higher interest rates on Fixed Deposits and special services, ensuring seniors can manage their finances with ease and dignity. Benefits often include low opening deposits, priority banking services, and even health-related benefits, making these accounts a valuable tool for managing retirement funds.
Also Read: Complete guide on how to open a Savings Account in 5 easy steps
Family Savings Accounts
Family Savings Accounts are a boon for families, allowing members to manage their collective finances efficiently while still maintaining individual account benefits. These accounts simplify banking for the entire family, allowing the linking of multiple accounts to enjoy combined benefits like higher interest rates or lower fees.
Joint Savings Accounts
Joint Savings Accounts, ideal for partners or business associates, simplify the management of shared finances, providing a unified platform for collective saving and spending. These accounts are particularly useful for managing household expenses or for small businesses that require a simple banking solution for partners.
Conclusion
Understanding the differences between the various types of Savings Accounts in India is vital in making an informed financial decision. Each account type offers unique benefits and features tailored to meet specific financial needs and goals. As you consider your options, it's worthwhile to explore the range of Savings Accounts provided by Axis Bank.
With its diverse offerings, Axis Bank Savings Accounts cater to a wide spectrum of banking preferences, ensuring that you find the perfect match to support and enhance your journey towards financial success.
Frequently Asked Questions
Q1. Which Savings Account is best?
Determining the best Savings Account depends on your unique financial needs and goals. If you're looking for simplicity and accessibility, a Regular Savings Account might be ideal. For those seeking to avoid minimum balance requirements, a Zero Balance Account is a great option. For specific demographics like children, women or senior citizens, specialised accounts offer unique benefits. Evaluate your personal banking habits, financial goals and the perks each type offers to make the best choice.
Q2. What types of Savings Accounts should I have?
The types of Savings Accounts you should have largely depend on your financial objectives and life stage. For day-to-day transactions, a Regular Savings Account is essential. If you aim to steer clear of minimum balance obligations, a Zero Balance Account presents an excellent choice. A Joint Savings Account could be beneficial for managing household expenses with a partner.
Q3. Is a Savings Account an asset?
Yes, a Savings Account is considered a liquid asset. It's a financial resource that you own and can readily convert into cash without significant loss of value. The money in your Savings Account not only represents a part of your net worth but also earns interest over time, contributing to your financial growth. It's a crucial component of your overall financial health, providing both security and accessibility.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision
