Savings Accounts- Types, Features, Interest Rates 2024

 Saving Accounts

A savings account is a type of bank account where individuals can deposit money and earn interest on their savings. Savings accounts usually offer lower interest rates compared to other investment options but provide liquidity and security for the deposited funds. They are often used for emergency funds, short-term goals, or a way to save money for future expenses.

The purpose of a savings accounts is to provide a medium for people to stash money that they do not intend to use regularly in a safe place . Accountholders earn decent interest on the amount deposited in their account at a pre-decided rate that changes from time to time. The interest is paid on a timely basics can be from monthly, quarterly,

Types of Saving Accounts 

 or biannually to yearly .The best thing about a savings account is that one can withdraw total funds almost immediately and use it as and when required.

In India, there are several types of saving accounts offered by banks, including:

1.Regular Savings Account

This is one of the most common simplest saving accounts that can open after completing e-KYC(know Your Customer) and earn interest from the deposit. A basic saving account with features like interest on deposits, ATM/debit card facilities, and online banking. Some banks maintain a minimum balance and charge a minimal annual fee for account maintenance.

2.Salary Savings Account

These accounts are for salaried accountholders who receive their monthly salary in these accounts. Some of the significant features of these accounts, such as free cheque book, international debit card, zero balance accounts, complementary personal accidental insurance cover, preferential interest rates on loans, etc.

3.Senior Citizens Savings Account

These accounts are specially designed for individuals above a certain age (usually 60 years), offering higher interest rates and other benefits catering to seniors needs and dedicated relationships manager, lower interest on credit, etc.

4. Women's Savings Account

  Designed specifically for women, with features like lower minimum balance requirements, higher interest rates, and special debit cards for women, preferential loan and credit offers, discounts on lockers, complimentary multicity cheque books, unlimited ATM cash withdrawals etc.                                                                   

5.Zero Balance Savings Account

These account does not offer any limitation of maintaining the minimum average monthly balance and this account can be opened and maintained even without depositing any amount .The banks limit the number of ATM withdrawals, do not offer cheque book facility, and limit the type of debit card available.

6.Student Savings Account

Parents or guardians of children under 18 years of age can open these accounts by providing identification prof and declaration of parents and guardians. Aimed at students, often with features like no or low balance requirements, and special benefits such as discount on educational expenses.

7.Joint Savings Account

Allows two or more individuals to open and operate an account together, often used by couples or family members. Joint account holders have equal access to funds but also share equal responsibility for any fees or charges incurred. Transactions conducted through a joint account may require the signature of all parties or just one.

8.Instant Digital Savings Account

Opened and managed entirely online, with features like paperless documentation, digital transactions, and higher interest rates. These accounts can be opened online within a few second via mobile or banking application by completing the KYC procedures. The bank keeps the account hold  in the case the accountholder does not complete KYC procedure within a specific period.

Features of Savings Account

A saving account acts as one of the simplest banking instruments for most people in India. Let us find out some of the most important features of saving accounts:

• Account holders earn interests on the amount in their saving account ranging from 2.70% to 7.55%

• Additional interest rate of 0.50% above regular rates offered to the senior citizen customers

• High liquidity for withdrawing or transferring money as many times as the account holders want to

• Enables accountholder to link savings account with fixed deposits in the same bank

• Accountholders get debit cards or ATM cards that can be used to make payments, online transactions, or withdraw cash from ATM

• Carry out fund transfers using UPI, NEFT, IMPS, or RTGS through net banking, mobile banking, or by visiting the bank branch

• Bank deposits up to 5 lakh are secured by DICGC

• Does  not impose any limitation on the amount that can be deposited

• Option to  operate the savings account via net banking, mobile banking, phone banking, or SMS banking

• Interest payment option can be chosen by the accountholder-monthly, quarterly, semi-annually, or annually

• Accountholders may have to adhere to Monthly Average Balance (MAB) requirements

• Offers various discounts and offers on savings account deposits and debit cards linked to it

Some of the Best Savings account Interest Rate

Here is the list of various types of banking sectors and their corresponding saving account interest rates:

•Public Sector Banks

Here is the list of top public sector banks and their saving account interest rates

Public Sector bank                   Interest Rates 

State Bank of India                   2.70% for less than 10 crore 3.00% for above 10 crore

Bank of Baroda                         2.75% to 3.35%

Bank of India                             2.90%

Punjab National Bank               2.70% to 3.00%

Central Bank of India                2.75% to 2.90%

Canara Bank                             2.90% to 4.00%

Indian Bank                               2.75% to 2.90%                          

• Private Sector Banks 

Here the list of top private sector banks and their savings account interest rates:

Private Sector banks               Interest Rates (p.a.)

ICICI Bank                           3.00% to 3.50%

HDFC                                    3.00% to 4.50%

Axis Bank                              3.00% to 3.50%

Induslnd Bank                        3.50% to 4.50%

Kotak Mahindra Bank            3.50% to 4.00%

RBL Bank                               4.00% to 7.50%

IDFC First Bank                     3.50% to 7.00%

Yes bank                                 3.50% to 7.00%

• Small Finance Banks

Here is the list of top small finance sector banks and their savings account interest rates

Small Finance Bank                 Interest rates (p.a.)

Suryoday SFS                            3.50% to 7.50%

Jana SFS                                     3.50% to 7.55%

Utkarsh SFS                                4.25% to 7.50%

ESAF SFS                                    4.00% to 7.50%

AU SFS                                          3.50% to 7.25%

Ujjivan SFS                                  Up to 7.50%

Equitas SFS                                   3.50% to 7.50%

• Payments Banks

Here is the list of top payments banks and their saving account interest rates:

Payment Bank                Interest Rates (p.a.)

Paytm Payment Bank        7.50%

FINO Payment Bank         2.50% to 5.00%

NSDL Payment Bank         2.50%

India Post Payment Bank    2.00% to 2.25%

Airtel Payment Bank           2.50% to 6.00%