For citizens that wish to save for the future, they can open a savings account in the banks listed below. Catering to the specific needs of customers, banks across the country are offering specialised savings account, such as - savings account for senior citizens, savings accounts for women, children, salary savings accounts and regular savings accounts. Savings accounts come with the advantage of tax free interest up to Rs.10,000 under Section 80TTA. Listed below are the features and benefits of savings accounts, the facilities available and the list of banks across the country offering different types of savings accounts.
Features and Benefits of Savings Account
- Savings accounts allow salaried individuals to save for the future using their regular monthly net income.
- Earn interest over deposits.
- There is no limit as to how long an individual can hold a savings account.
- Savings accounts comes with internet banking facilities, allowing account holders to check their balance, initiate a fund transfer, request for a cheque book, get a detailed description of the money in and out of their account, etc.
- Customers can make purchases from their savings account either by using their credit card, debit card or online on merchant websites.
- For customers that do not wish to go through the hassle of maintaining a minimum balance requirement, they can opt for a zero-balance savings account.
- Customers can park their short-term savings.
- Customers can enroll in the Public Provident Fund scheme through their savings account.
- No limit to the amount of deposits and withdrawals a customer can make. That said, certain charges are applicable after a point.
Savings Account Facilities
Listed below are the facilities customers can avail with a savings account:
- Customers can make bill payments, recharge their mobile phone, make a DTH top-up, etc.
- Make fund transfers through the NEFT, RTGS and IMPS facilities.
- Make withdrawals from ATMs across the country.
- Make ATM deposits and deposits at any bank branch holding your account.
- Customers can purchase goods online through the internet banking facility.
- Reward points for every transaction. The reward points can be redeemed in the form of vouchers, movie tickets, travel tickets, etc.
- Pay electricity bills through the e-banking facility.
- Through the savings account, customers can pay their EMIs, clear their credit dues, etc.
- Avail attractive loan schemes at low interest rates through one’s savings account.
- Check detailed or mini statement of money flowing in and out of one’s account.
Documents Required to Open a Savings Account
Customers wishing to open a savings account have to submit the below listed documents when submitting the account opening application form at the bank branch.
- Proof of identity - Passport, Voters’ ID, Aadhaar card, etc.
- Proof of address - Passport, Driver’s license, Aadhaar card, etc.
- PAN card copy
- 2 passport size photographs
Types of Savings Account
As already mentioned, banks across the country are offering specialised savings accounts to cater to the individual needs of their customers. The different types of savings accounts are listed below:
- Regular savings account
- Salary savings account
- Senior citizen savings account
- Children or minor savings account
- Women’s savings account
Regular savings account:
This account is a basic type of savings account. Customers earn interest over their deposits and this sort of an account typically comes with minimum balance requirement. Customers can make deposits and withdrawals. That said, withdrawals comes with a daily limit.
Types of regular savings accounts offered by top banks:
Listed below are the regular savings accounts offered by top banks along with the current interest rate and minimum balance requirement.
|Bank||Interest Rate||Minimum balance requirement|
|DBS Bank Digi Account||4.00% - 7.00%||NA|
|HDFC Bank Regular Savings Account||3.50% - 4.00%||Rs.10,000 for metro and urban branches Rs.5,000 for semi-urban branches Rs.2,500 for rural branches|
|SBI Savings Plus Account||3.50% - 4.00%||Rs. 25,000|
|ICICI Bank Regular Savings Account||3.50% - 4.00%||Rs.10,000 in metro and urban branches Rs.5,000 in semi-urban branches Rs.2,000 in rural bank branches|
|Citibank Citi Banking Savings Account||4.00%||Rs.25,000|
|Axis Bank Basic Savings Account||3.50% - 4.00%||NA|
|Yes Bank Savings Value Account||5.00% - 6.25%||NA|
|Kotak Bank Nova Savings Account||5.00% - 6.00%||Rs. ,000|
|Bank of Baroda BOB Savings Account||3.50% - 4.00%||QAB of Rs. 500 for rural branches QAB of Rs.1,000 for urban branches|
|Standard Chartered Bank Basic Banking Account||4.00%||NA|
|PNB Saving Deposit(General) Account||3.50% - 4.00%||Between Rs.500 to Rs.1,000 for urban and rural branches|
|IDFC Bank Savings Account||4.00%||Rs.25,000|
|South Indian Bank Regular Savings||4.00%||NA|
|Andhra Bank Abhaya SB Account||4.00%||NA|
|IDBI Bank Super Savings Account||4.00%||Rs.5,000 Metro and Urban branches Rs.2,500 for semi-urban branches Rs.500 for rural branches|
|Canara Bank Savings Bank Account||4.00%||Rs.1,000 for Metro, Urban and semi-urban branches Rs.500 for rural branches|
|Indian Bank Savings Bank Account||3.50% - 4.00%||Rs.250 for non-cheque operation savings accounts Rs.500 for cheque operation savings accounts|
|UCO Bank Saral Savings Deposit Scheme||4.00%||Between Rs.250 and Rs.1,000 for rural and urban branches|
Salary savings account:
This sort of an account is usually set up by the establishment the customer works for. The customer will receive his/her monthly earnings in this type a savings account and this sort of an account typically does not come with any minimum balance requirement. Customers can avail a number of facilities through the internet banking facility that comes with this account. If by chance no salary is credited to this account for a span of three months, the salary savings account will automatically be converted to a regular savings account with a minimum balance requirement.
Senior citizen savings account:
Specifically designed only for senior citizens, the senior citizens savings account comes with special privileges and higher interest rates for depositors. Senior citizens can facilitate the use of this account to link their pension funds and manage it using the savings account.
Types of senior citizen savings accounts offered top banks:
Listed below are some of the top senior citizens savings accounts offered by top banks in the country.
|Banks||Savings account name|
|HDFC Bank||Senior Citizens Account|
|ICICI Bank||Life Plus Senior Citizens Savings Account|
|Kotak Bank||Grand- The Savings Programme for the 55+|
|Axis Bank||Senior Privilege Savings Account|
|IDFC Bank||Senior Citizen Savings Account|
|IDBI Bank||Jubilee Plus (Senior Citizens) Account|
|Canara Bank||Canara Jeevandhara|
Children and minor savings account:
In a bid to encourage children to save for the future or to enable parents or guardians save for their child’s future, banks across the country offer specialised children and minor savings accounts. This type of a savings account does not come with a minimum balance requirement and shares similar features and facilities with a regular savings account.
Children and minor savings accounts offered by top banks:
Listed below are children and minor accounts offered by different banks.
|Bank||Savings account name|
|HDFC Bank||Kids Advantage Account|
|ICICI Bank||Young Stars Savings Account Smart Star Savings Account|
|PNB||PNB Junior SF Account PNB Vidyarthi SF Account|
|Axis Bank||Future Stars Savings Account|
|IDBI Bank||Power Kidz Account|
|Kotak Bank||Junior- The Savings Account for Kds|
|IDBI Bank||Power Kidz Account|
|IDFC Bank||Minor Saving Account|
|Indian Bank||IB Smart Kid SB Account|
|South Indian Bank||Junior Savings|
|Canara Bank||Canara Junior Saving Account|
|Andhra Bank||AB Kiddy Bank AB Little Stars AB Teens|
|UCO Bank||UCO Smart Kids Savings Bank Scheme|
|SBI||Savings Bank Account For Minors Savings Account for Minors: Pehla Kadam and Pehli Udaan|
Woman’s savings account
Catering specifically to women, banks around the country have rolled out a number of women’s savings accounts that allows them to avail high value loans at attractive interest rates for female entrepreneurs or for them to start a business. Apart from this, the women’s savings account comes with all the features and facilities of a regular savings account.
Types of woman’s savings accounts offered by top banks:
|Bank||Woman Savings account name|
|HDFC Bank||Women's Savings Account|
|ICICI Bank||Advantage Woman Savings Account|
|Axis Bank||Women's Savings Account|
|Kotak Bank||Silk-Women's Savings Account|
|PNB||PNB Power Savings|
|IDBI Bank||SuperShakti (Women’s) Account|
|South Indian Bank||Mahila Plus Savings Bank|
Savings Account Charges
Listed below are the approximate charges for various services and non-maintenance of a savings account.
|Non-maintenance of account||Between Rs.150 - Rs.300|
|Cash transactions at own bank branch||Free for first three transactions per month. Rs.150 per transactions after the first three free transactions.|
|ATM withdrawal from other bank||Free for first 3-4 transactions. Rs.10-Rs.20 will be charged after the free transactions.|
1. Can you tell me who is eligible to open a savings account.
A savings account can be opened either by:
- Any Indian resident
- By parents or guardians on behalf of minors
- Hindu Undivided Family (HUV)
2. Is it possible to add a nominee for my savings account?
Yes, individuals can make a nomination when opening the account. For this, the details of the nominee has to be submitted as well. The nominee can be either a family member, spouse, or a trusted member of the primary account holder.
3. Are there any tax deductions with regard to savings account?
Yes, the interest earned over the deposits are tax free upto Rs.10,000 under Section 80TTA.
4. Can Non-resident Indians open a savings account in India?
Yes, Non-residents can open a savings account. They have the choice of either opening a NRE (Non-resident external) savings account or a NRO (Non-resident ordinary account). For the NRE savings account, account holders can park their money earned abroad in the account. Whereas, in the case of the NRO savings account, NRIs can park the money they earn in India in the account.
5. Is it possible for a savings account to be inactive or dormant?
Yes, if the savings account holder has not made any transaction from or to the account for a period of two years, then the savings account is considered dormant or inactive. In this case, the account holder will have to contact the bank to activate the account, if he/she wishes.