Different Types of Savings Account

17 Oct 2022

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Savings give financial security and relieve stress. They are fundamental for a secure financial future. It is the fund that bails you out through rough times like the Pandemic. If it hadn't been for those wisely guarded pennies, people who went through layoffs or salary reductions could not have survived. Without their savings to fall back on, things would have been difficult. Saving account interest rates may have dropped but they still add 2.75 -3.35 % (subject to change) per year to your deposit. So, while we realise it is healthy to save, you should know the types of savings account that will best serve your purpose and be beneficial for your small, medium or large saving behaviour. Here’s a quick checklist that will help you to make a more informed decision.

Types of Savings Account

Within the savings account, different banks offer a variety of accounts depending on the utility of the account and the age of the account holder.

Some banks offer a zero-balance account, but these are done for salaried accounts or for some professionals and students.

Traditional or Regular Savings Account

These accounts are mostly for those who are looking for short-term savings. People depending on this savings account type are not looking for a good interest rate on their savings. These accounts are opened for making quick savings and withdrawals. All traditional banks support these types of savings accounts in India. These operate on low minimum deposits and limit daily withdrawals. The account can be opened online, as a digital saving account or you can open it in person. Your money grows as there is interest in your savings. You have the flexibility to visit a branch during business hours or anytime you can deposit through cash recycler machine, you wish to make a deposit. Everyone must maintain this regular savings account.

Corporate Salary Account

This savings account type is a privileged bank account that employees enjoy by being linked to a corporate institute in both the public and private sectors. These can be customised according to the business relationship that the corporate shares with the bank. Each bank floats its own set of customised advantages for the corporate. The account requires zero balance and there is no limit to a transaction from ATMs of Bank of Baroda bank. The employee can enjoy an overdraft facility in-built in the account as per the salary variant The account holder enjoys a waiver on retail loan processing charges, there is also a discount on locker rentals. You can take advantage of the sweep facility on making request.

Children Savings Account

If you have taken a piece of worldly advice from the 1964 musical classic Mary Poppins, on how to save tuppence with incentives of compounding amounts, then knowing more about the minor savings account will be of some interest. The account is for children between the ages of 0-18. This is a minimum deposit account where children can avail of Baroda Champ Rupay debit card, ATM, mobile banking, POS and e-Commerce facilities, if the age is 10 years and above for individual accounts. Withdrawals are met with a limit and maximum credit balance in the account can be Rs 1,00,000 /-. The good thing about opening a minor savings account is, your minor can get into smart saving habits early in life.

Women Savings Account

The women’s savings account offers immense opportunities for women to make more out of their savings. These are saving accounts that come with hefty benefits and facilities. These accounts are designed to financially empower women, taking them towards powerful investments. With Flexi fixed deposit facilities, shopping attractions, complementary minor saving accounts, personal accidental insurance and many other discounts, women should be consciously aware of what to expect. The account allows women to enjoy their financial independence with a 0.25 % discount on vehicle purchases of Auto loan with a 25 % waiver on processing charges. They can also adjust their expenses with the sweep facility available on request. Apart from these attractions, the annual maintenance charges on DEMAT are waived for first year and the initial joining fees on credit cards are exempted.

Digital Saving Account

In this day and age where time is of the essence, a digital saving account is a boon. Work that took hours has been reduced to minutes. Without having to visit the bank you can perform your banking work through digitized solutions. Through the mobile app or internet banking, you can manage your account from your phone or any other device. This should make you feel great as you are joining the paperless community. Opening and operating the account digitally is a seamless procedure with instant fund transfer, internet and SMS banking. The account makes possible instant e-commerce transactions with reward facilities on shopping and merchandise. You can also withdraw cash through your virtual debit card. Only for making a fresh deposit do you need to travel physically to the ATM counter or the nearest branch. With high-security coding and fraud management solutions, all you need is an internet connection for a digital saving account and a safe bank to depend on.

Savings Account for Central/State Govt. Employees

Central and State departments use this type of savings account in India that comes with a plethora of advantages. These accounts follow a hassle-free opening process with on boarding on the office premises or take advantage of the digital saving account under corporate banking facilities. Salary disbursement entails zero charges with a Free 150 cheque leaves per year, thereafter Rs. 5 per leaf., expanded sweep threshold, free internet banking, free statements, direct online payment to beneficiaries, and no charges for NEFT, RTGS, IMPS outward or inward payments facilities for online and through Branch. The USP of this account is that it offers Group Personal Accidental Death Insurance cover upto Rs.40.00 lacs. (subject to terms and conditions )

Savings Account for Defense Personnels

a) Salary accounts for Police forces

These savings account types are for 1. Central Bureau of Investigation 2. State Police Forces

These warriors are protected with lifetime free Rupay Debit Card along with a huge insurance cover from the card that comes with the salary package. Owing to the risk in their job, they are provided with a partial or complete disability cover, accident cover, along with death insurance. The account comes with a cover for the marriage and higher education of their wards. If they have an accident that requires plastic surgery the account provides adequate coverage. These savings account types can be treated as digital saving accounts and managed online or from any branch with ease. The salary account is power packed with discounts and waivers, and easy loan facilities from personal to educational. The personnel can embrace unlimited free transactions from any ATMs.

b) Savings Account for Indian Military Personnel

The savings account types also include savings accounts for Indian Military Personnel. This account comes with insurance, facilitated loan schemes and several other benefits. After retirement, the saving account upgrades to a pension account where military personnel can enjoy comfort and security from the account. The account covers accidental insurance for salaried personnel and pensioners. The processing fees on loans are waivered, and there are benefits on ATM transactions and debit & credit cards.

c) Savings Account for Indian Central Forces Personnel

Savings Account for Indian Central Forces Personnel can be opened in person, or it can be a digital saving account. It is a zero-balance account which is accompanied by insurance coverage and retail loans. ATM transactions are unlimited and free. Both debit and credit cards have added benefits.

Few other features of Defense personnel savings accounts are –

  • Minimum balance – Nil.
  • Cheque books- Free - Unlimited Cheque books.
  • Demand Draft/Banker's Cheque - Unlimited Free.
  • Lockers - Discount up to 50 % on locker rentals.
  • Digital Lending - Digital Lending available.
  • Discount on Depository Services/Demat AMC - 100% waiver in Demat Annual Maintenance Charges.

Joint Saving Account

In the list of different types of savings accounts, comes the essential joint saving account. This account is particularly important as not only it increases the accessibility of the account but also ensures that the deposits in the account fall in the hand of the joint holder after an unforeseen accident or demise of one of the account holders. A joint account, therefore, offers more convenience in the absence of the other account holder. The account offers the flexibility of operation depending on your choice, for either or all account holders. Other incentives like locker rentals can also be availed quite easily.

Senior Citizens Privilege Savings Account

Among the types of savings accounts listed, the Senior Citizens’ Privilege Savings Account offers the best interest rates with the advantage of flexible deposits. The senior citizens savings account allows more returns in savings with ease of banking convenience and several other benefits. The account holder can make large debits, avail discount on locker charges, make use of the sweep facility with waivered DEMAT annual charges for first year, benefits on mortgages. The interest is realised in the investor account on the first working day of every financial quarter. If the account is closed prematurely, before a year of opening the account, the interest paid on the deposit will be recovered by the bank. If the account is closed between one year or two years after its opening, then a deduction of 1% of the deposit will be made returning the balance to the account holder. In case of death of the senior citizen, the account will be closed and refunded along with the interest till the date of demise, at the rate of the saving account, till the final closure of the account.

Pensioners Savings Bank Account

After retirement with pensioners savings bank account, manage your pension funds with peace and ease. The account opening deposit is only Rs 5 only. You don't need a balance in this account that comes with an overdraft facility if you have no other credit from the bank. The account allows has unlimited chequebook facility.

Bottom Line

Your saving account choice depends on your requirement. Choose the best account that suits your purpose, and evaluate the rate of interest, minimum balance and the benefits that accompany the account. Study the digital saving account options to make your banking activity hassle free. Closely look at the transaction or service charges. Also, read about the offers that come with the debit card and check the density of ATM branches. Open a saving bank account with a Bank of Baroda, a trusted bank serving thousands of customers with customer first service. Avail the bob World App and Bank of Baroda Net Banking Facilities to make the most from your investments and save time by investing in a reliable savings account.

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    The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda 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 mentioned. Please consult your financial advisor before making any financial decision.

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What is Zero Balance Account

The growth of the Mutual Funds in India has created its edge in the personal finance industry in India and has opened up opportunities for investors to diversify their investments across various asset classes. Mutual fund is a type of financial intermediary product that empowers millions of small as well as large investors across the country to participate and invest in capital market and derive benefits from the same.

Features & Benefits of Savings Account

A savings account is the most basic bank account available. It is an account that allows you to pool in your finances and manage them. The funds are available to be withdrawn at any time. With the different needs and requirements of the customers, banks have begun offering different types of savings accounts to meet these different needs.

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