7 Types of saving account to help you save
Posted: Feb 22, 2019
Just like every individual is different, their banking needs also differ. And therefore, just opting for the same type of savings account by every kind of individual is not the right thing. You could be a businessman, a salaried employee, a homemaker, or a student, and your needs might not be same as the rest. And, to fulfil your requirements, and give you just what you need, there are various types of accounts.
Here are five popular types of account that you could consider opening, depending on what best serves your purpose.
- Regular savings account: A regular savings account is ideal for anyone trying to get into the habit of saving. Whatever your motto of saving is, savings account always come handy, and they come with many attractive features. The traditional account is where you can park all your extra money, earn interest on it, and withdraw it whenever you want. The account comes with a debit card, access to the bank's branches and ATMs, online/internet banking, and other amazing benefits.
- Student savings account: Regular savings account requires you to maintain a minimum balance in the account and they pay you interest for the same. When you’re not earning, keeping this minimum limit can be a problem. Therefore, you should consider a Student Savings Account, which is a type of savings account for students. These accounts come with a very low minimum balance requirement and offer benefits that prove beneficial to students.
- Salary savings account: If your new or current employer happens to have a banking relationship with the same bank where you hold your savings account, you can opt for the option of converting your savings account to a salary savings account. A salary account does not have any minimum balance requirements and the interest rate offered is usually the same as a regular savings account.
- Children savings account: As the name goes, Children’s Savings accounts are for kids, to help them develop saving habits and be money aware. These accounts are mostly zero-balance accounts and come with a small interest rate, and can be converted to regular savings account once the kid turns 18. These accounts are also helpful for parents to save money for the future of their kids, their education, wedding, and other purposes.
- Women savings account: To encourage today’s independent women to save and take up their financials in their hands, banks have come up with the concept of Women’s saving account. These accounts are much like the regular savings account but come with some added benefits like low minimum balance requirement, special banking services, monthly interest payout, features of family banking, etc.
- NRO accounts: If you are an Indian living abroad and have Rupee income generated in India in the form of rent, pension, dividends, etc.- an NRO (Non-Resident Ordinary) Account is best suited to maintain and manage this income. You would need to add an Indian Joint Account holder to operate your account locally, using chequebooks and mandate cards. An NRO account offers several benefits like DTAA tax benefit, hassle free money transfers and competitive exchange rates.
- Senior citizen accounts: Senior citizens have unique saving needs and banking behaviour. In order to suit their requirements, banks offer customized senior citizen accounts. The minimum age criteria for such accounts is 60 years. These accounts provide the facility to invest in the Senior Citizens Savings Schemes of the government that offers a higher assured return. Further, these accounts generally come bundled with other benefits like health insurance, lower locker fees, lower AQB requirement, etc.
All these types of accounts help you save money, earn interest, and allows you to have your money deposited at a safe place which is easily accessible. But, going for a type of account that best suits your purpose will give you more benefits.
Savings account are the most conventional methods of saving money, and they have been around for a long time.