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How To Determine Which Savings Account Is Right For You


Time to read: 10 Mins | May 31st, 2018

“The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.” -- Thornton T. Munger

This beautiful and thought-provoking quote by a pioneering research scientist for the U.S. Forest Service in the Pacific Northwest, known for founding research operations at the Wind River Experimental Forest, is relevant even to the world of personal finance.

How To Determine Which Savings Account Is Right For You

If you are disciplined in handling money, every penny saved will be a penny earned. Saving hard-earned money can enable you to lead a healthy financial life.

Money saved diligently, should be parked in a savings account. Everyone, irrespective of the economic strata, what you do for a living, and residential status, should open a savings bank account. For minors too, a savings bank account should be opened by their parents/guardians, so that they too learn to save at an early age, and value money.

A savings account is fundamental to manage personal finances: pay utility bill, transfer money, withdraw, to shop, to address contingency needs, to invest, to receive money, and so on. And the balance in the savings bank account can earn you interest at the rate of 3.5%-6% per annum, as opposed to it lying idle and perhaps unsafe at home.

Moreover, Section 80TTA of the Income Tax Act, 1961 provides a deduction upto Rs 10,000 in respect of interest income earned on savings account. This deduction is available to Individuals and Hindu Undivided Families (HUFs). Further, for senior citizens, this year in the union budget 2018, the exemption for interest income earned on deposits with banks and post offices is increased from Rs 10,000 to Rs 50,000.

There are various types of saving bank accounts today, with frills and no-frills, with distinguishing features catering to your needs. A regular savings account, salary account, senior citizen savings account, youth savings account, women’s saving account, zero balance savings account, linked savings account are some of the types of savings bank accounts.

Axis Bank, for instance, offers a diverse range of savings account to serve specific needs. Here’s the list:

Basic Savings Account

This savings account offer a zero balance facility as you save. Plus, it facilitates you to transact with ease and track the account with ease with monthly e-statements, passbook, and SMS alerts. You also get a free RuPay Debit Card, which can be used to withdraw money at ATMs and shopping. The daily withdrawal limits is Rs 40,000 at ATMs and Rs 1 lakh for shopping transactions.

The basic savings account can be opened by resident individual and Hindu Undivided Family (HUF) by furnishing necessary documents along with account opening form.

However, the condition to open this account is, the applicant should not have any existing savings account with Axis Bank prior to the opening of Basic Savings account. If any existing savings account is available or active, the customer needs to close it by providing a closure request.

Axis ASAP Instant Savings Account

This is a digital savings account that can be conveniently opened online. If you are considering opening a savings account right away, Axis ASAP Instant Savings Account is perfect for you.

This account comes with exciting benefits:

  • A zero-balance facility with no strings attached
  • Comes with a virtual debit card with exciting online shopping offers
  • You can do fund transfers
  • Pay utility bills
  • Book flight tickets and hotels and more
  • Earn Axis eDGE reward points
  • You can an invest in fixed deposits and recurring deposits
  • Earn a higher interest rate on auto-sweep deposits above Rs 10,000
  • Access to Internet and Mobile Banking; and
  • Get e-statements and SMS alerts to keep track of your transactions

Axis ASAP Instant Savings Account offers a stress-free banking experience and the account can be literally opened in few minutes by following these simple steps:

  • Go on to: https://digital.axisbank.co.in/AxisDigitalBanking/html_pages/main.html
  • Enter your name
  • Enter you mobile number, Aadhaar, and PAN
  • Enter the OTP shared on your registered mobile number
  • Finally, your AXIS ASAP account is opened with a number assigned to it

Want to know more about Axis ASAP Instant Savings Account? Click here.

EasyAccess Savings Account

The minimum deposit to open this savings account is Rs 10,000 (in metros) and this is the average monthly balance requirement too.

Along with this account you get:

  • RuPay Platinum Debit Card at a nominal issuance fee of Rs 200 ( Annual fee of Rs 200 in metro/urban and Semiurban)
  • Daily withdrawal limit is Rs 40,000 at ATMs, and Rs 1 lakh on shopping
  • One, free, payable-at-par chequebook per quarter
  • A personal accident insurance cover of upto Rs 2 lakh if the card is swiped once in every six months
  • Access to internet and mobile banking services.

The EasyAccess Savings Account can be opened by resident individuals and Hindu Undivided Families by furnishing the necessary documents along with account opening form.

Prime Savings Account

This savings account provides you with enhanced access and higher transaction limit. It comes with benefits such as:

  • Unlimited (free) cheque books, without any charge
  • Unlimited (free) Demand Draft (DD), without any charge
  • A Secure Plus Debit Card, at a zero issuance fee
  • Daily withdrawal limit of Rs 50,000 at ATMs
  • Daily limit of Rs 75,000 on shopping transactions
  • Earn Axis eDGE Reward points
  • Emergency Travel & Hotel Assistance of up to Rs.80,000 (while travelling abroad)/Rs.40,000 (while travelling in India)
  • Emergency Cash Assistance of up to Rs 5,000
  • A fraud protection cover of Rs 75,000
  • Personal accident insurance cover upto Rs 5 lakh with Secure Plus Debit Card
  • Access to internet and mobile banking
  • E-monthly statement, SMS alerts to track your transactions

The minimum amount of deposit to open the Prime Savings Account is Rs 25,000 (in metros), which is also the average monthly balance requirement.

This account can be opened by resident individuals and Hindu Undivided Families by furnishing necessary documents along with the account opening form.

Prime Plus Savings Account

The Prime Plus Savings Account makes you feel exclusive, as you enjoy higher transaction limits, preferential pricing, and entertainment benefits.

The salient features of this account are:

  • Free Prime Plus Debit Card
  • Two, free, payable-at-par chequebooks per quarter
  • 10% cash-back on movie ticket bookings (subject to a maximum of Rs 1,000 per year)
  • 25% discount on locker rent for the first year
  • High cash transaction limit every month
  • Unlimited free ATM Withdrawals at Axis and other Bank's ATMs
  • High daily withdrawal limits of Rs 50,000 at ATMs
  • Daily limit of Rs 1 Lakh on shopping transactions
  • Earn Earn Axis eDGE Reward points
  • Enhanced Combined Lost Card Liability and Purchase Protection Liability of upto Rs 75,000 to protect debit card from fraudulent use and also cover for damage or loss of articles purchased using debit card
  • Access to internet and mobile banking
  • Monthly e-monthly statement, SMS alerts to track your transactions

The minimum deposit to open the Prime Plus Savings Account is Rs 1 lakh across locations. And you have the flexibility to maintain an average monthly balance, it can be: Rs 1 lakh; or a Total Relationship Value (TRV) of Rs 5 lakh across your savings accounts and fixed deposits, for a minimum tenure of 6 months.

This account can be opened by resident individuals and Hindu Undivided Families by furnishing necessary documents along with the account opening form.

Women’s Savings Account

This savings bank account can be opened by all women residing in India. It empowers them with financial independence. The minimum deposit to open a Women’s Savings Account is Rs 10,000 (in metros), which is also the minimum average monthly balance requirement.

This account offers:

  • One, free, payable-at-par chequebook per quarter
  • A Visa Classic Debit Card at nominal issuance fee of Rs 200 ( Annual fee of Rs 200 in metro/urban and Semiurban)
  • Daily withdrawal limit of Rs 40,000 at ATMs
  • Daily limit of Rs 1 Lakh on shopping transactions
  • Personal accident insurance cover of upto Rs 2 lakhs, if card is swiped once, every six months
  • Combined Lost Card Liability and Purchase Protection Liability of upto Rs 50,000 to protect debit card from fraudulent use and also cover for damage or loss of articles purchased using the debit card
  • Access to internet and mobile banking
  • Monthly e-monthly statement, SMS alerts to track transactions

Furnish your necessary documents along with the account opening form to open this account today for your financial independence and experience simplified banking.

Future Stars Savings Account

This account is perfect for children below 18 years –– the future stars! For children below 10 years, the account can be operated by guardian for children.

Opening a savings account for children can inculcate the habit of saving and help them recognise the value of money from an early age.

The minimum deposit to open Future Stars Savings Account is Rs 2,500 (in metros), and this is also the minimum average monthly balance requirement. However, the minimum balance requirement can be waived-off if you maintain a fixed deposit of Rs 25,000 for 6 months or Recurring Deposit of Rs 2,000 for a year.

This account comes with the following features:

  • Visa Classic Debit Card at a nominal issuance fee of Rs 200 (Annual fee of Rs 200 in metro/urban and Semiurban locations)
  • Free ATM card for children below 10 years of age, with a daily withdrawal limit of Rs 1,500
  • Children above 10 years can get an image on their choice printed on the card
  • One, free, payable-at-par chequebook per quarter, in the child’s name or guardian’s name if the child is below 10 years of age
  • Personal accident insurance cover of upto Rs 2 lakhs, if card is swiped once, every six months
  • Combined Lost Card Liability and Purchase Protection Liability of upto Rs 50,000 to protect debit card from fraudulent use and also cover for damage or loss of articles purchased using the debit card
  • Free SMS alerts and internet banking services
  • Monthly e-statement to track transactions

Furnish the necessary documents along with your account opening form and give your child a bright financial start.

YOUth Savings Account

This savings account is for the youth, i.e. resident individuals between 18 to 25 years of age. It offers them the convenience of YOUth Mobile App that facilitates: checking account balance, transfer funds, settles accounts with friends holding Axis Bank account/s (without needing their bank account number) and recharging prepaid mobile phones.

In addition, the account offers customisable YOUth Debit Card (a choice of image on the card) loaded with feature viz.:

  • Multiple deals and discounts
  • Daily ATM cash withdrawal limit of Rs 40,000
  • Daily limit of Rs 1 lakh on shopping transactions
  • A combined Lost Card Liability and Purchase Protection Liability of upto Rs. 50,000 to protect debit card from fraudulent use and also cover for damage or loss of articles purchased using the debit card
  • Access to internet banking and SMS alerts
  • Monthly e-statement to track transactions

To know more about the necessary document required to open this account, click here.

Senior Privilege Savings Account

This account is for over resident individuals who are 57 years age or older, and the account holder will get priority treatment at Axis Bank branches to move up the queue.

The minimum deposit to open a Senior Privilege Savings Account is Rs 10,000 in metro and urban centres; Rs 5,000 in semi-urban centres; and Rs 2,500 in rural centres.

A power-packed debit card is issued at a nominal fee of Rs 200, and personalized Senior’s ID Card for availing discount at health-care centres and emergency use.

You are eligible to receive discounts upto 50% at 200 diagnostic centres, and upto 15% off on medicine purchases at 1400 Apollo pharmacies. You can access the complete list of diagnostic centres and pharmacies, here.

Further, for the benefit of senior account holders, who may not be tech savvy, there’s also a bill payment facility at the bank’s branches. There are over 146 billers registered across seven categories like electricity, gas, telephone, and more.

All you got to do is a simple one-time registration. Once that’s done, you, the account holder, will get an SMS when the bill is generated, and the payment will automatically be processed from your account. And in case you wish to stop the automatic payment, it is possible with intimation to the Axis Bank call centre.

The daily ATM cash withdrawal limit is Rs 40,000 and shopping limit upto Rs 1 lakh

When you move money from this savings account to a bank FD and/or recurring deposit (RD), you earn an additional 0.50% interest rate over the nominal rate of interest for the chosen tenure.

To keep track of your transactions, besides access to e-statements, you also have the option of getting one free pass book on request.

Moreover, this account provides free personal accident insurance cover of Rs 2 lakhs upon swiping your card once every 6 months. Also, a combined Lost Card Liability and Purchase Protection Liability of upto Rs. 50,000 to protect debit card from fraudulent use and also cover for damage or loss of articles purchased using the debit card.

To open Senior Privilege Savings Account and know the documents required, click here.

Pensions Savings Account

This account is suitable if you wish to enjoy stress-free banking post retirement. It is designed to access Central Civil Pension for existing and prospective pensioners of Central Government, Civil Ministries/Departments and Defence Ministry. You receive communication on receipt of the Pension Payment Order (PPO).

The Pension Savings Account can be opened by resident individuals who are employees of central government and civil ministries, employees of armed forces, employees of establishments with a workforce of more than 20, members of the EPS 95 scheme, and a member of Employees Family Pension Scheme.

The Pension Savings Account offers enhanced banking benefits such as:

  • Free and unlimited chequebooks
  • Free and unlimited transactions at all Axis Bank and non-Axis Bank ATMs
  • Nil charges on DD/PO issuance
  • Unlimited cash transactions with no cap on value
  • No average minimum balance quarterly balance requirement
  • Visa Classic Debit Card issued at nominal fee of Rs 200 (Annual fee of Rs 200 in metro/urban and Semi-urban locations)
  • High daily withdrawal limits of Rs 40,000 at ATMs
  • Daily limit of Rs 1 lakh on shopping transactions
  • Free personal accident insurance cover of Rs 2 lakhs upon swiping your card once every 6 months
  • A combined Lost Card Liability and Purchase Protection Liability of upto Rs 50,000 to protect debit card from fraudulent use and also cover for damage or loss of articles purchased using the debit card
  • Access to internet banking, mobile banking and free SMS alerts to keep track of your transactions.

To know the documents required for opening a Pension Savings Account, click here.

Insurance Agent Account

This account is specifically for insurance agents. It can be opened with a concessional minimum deposit of Rs 5,000 (in metros), and comes with high withdrawal limits and low balance requirements.

Some of the salient features of this account are:

  • Visa Classic Debit Card at a issuance fee of Rs 200 (Annual fee of Rs 200 in metro/urban and Semiurban locations)
  • Daily withdrawal limit of Rs 40,000 at ATM
  • Daily limit of Rs 1 lakh on shopping transaction
  • One, free, payable-at-par chequebook per quarter
  • Free personal accident insurance cover of Rs 2 lakhs upon swiping your card once every 6 months
  • A combined Lost Card Liability and Purchase Protection Liability of upto Rs 50,000 to protect debit card from fraudulent use and also cover for damage or loss of articles purchased using the debit card
  • Access to internet banking and mobile banking to keep track

To know the documents required to open the Insurance Agent Account, click here.

Trust/NGO Savings Account

For Trust and NGOs to power their efforts for social good, Axis Bank offers special services and complete banking experience. We offer a choice of Platinum Trust Account, Gold Trust Account, Silver Trust Account, and Standard Trust Account based on the trusts requirement.

Let’s look at the salient features of each of these accounts:

  • Platinum Trust Account – The average monthly balance requirement for this account is Rs 30 lakh, or balance across Savings and Term Deposits of Rs 1 crore.
    It offers unlimited access to funds, corporate internet banking, SMS alerts, and e-statements. Further, there is free locker and safe custody facility for Trusts, discounts on commercial vehicles and education loans, and special privileges viz. Burgundy accounts for trustees and salary disbursement solutions for trust employees.
  • Gold Trust Account – The average monthly balance requirement for this account is Rs 5 lakh, or balance across Savings and Term Deposits of Rs 25 lakh.
    Like the Platinum Deposit Account, this account too, offers unlimited access to funds, corporate internet banking, SMS alerts, and e-statements.
    However, locker and safe custody facility is at 50% discount; not free. Likewise, discounts are extended for commercial vehicle loan and education loans. Upto 20% discount can be availed on on setup and transaction charges for collection solutions such as Easy Pay online, EDC machines, and Payment Gateway. And there are discounts on payment solution, PayPro as well.
    In addition, there are special privileges for easy and convenient disbursement of Trust employees and free membership for Trustee to Axis Bank’s premium savings programme.
  • Silver Trust Account -The average monthly balance requirement for this account is Rs 25,000, even as the benefits of free unlimited access to funds, corporate internet banking, SMS alerts, and e-statements remain.
    But, there aren’t any discounts and special privileges extended as in the case of platinum and gold account.
  • Standard Trust Account – The average monthly balance requirement for this account is Rs 10,000, even as the account offers free unlimited access to funds, corporate internet banking, SMS alerts, and e-statements. However, discounts and special privileges aren’t extended to this account.

To precisely know who are eligible to open any of these accounts, and the documents required, click here.

To conclude…

There are a galore of savings bank and accounts. But you should opt for ones that best suit your needs and offer a host of benefits.

Make sure not to compromise on the safety of your hard-earned money, and therefore do thorough background checks before you park your hard-earning money. Apt customer service and tools are essential to make it a delightful banking experience.

Technology is an enabler; so opt for internet and mobile banking services for banking on-the-go and have better control over your personal finances.

Select your savings bank account wisely and lead a healthy financial life.

Happy Banking!

Disclaimer: This article has been authored by PersonalFN, a Mumbai based Financial Planning and Mutual Fund research firm known for offering unbiased and honest opinion on investing. Axis bank doesn't influence any views of the author in any way. Axis Bank & PersonalFN 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.

NOTE WORTHY

The balance in the savings bank account can earn you interest at the rate of 3.5%-6% per annum.

 

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