Everything You Need To Know About The Different Savings Accounts In India

by Shashank Bhaskar Finance Adviser

Everyone who starts earning money looks for a safe place to park their savings in. And what better than a savings account to begin your investment journey. Every citizen above the age of 18 must have a savings account. These accounts serve as the pillar for you to start your savings, make investments and ultimately build your wealth. It is up to you whether you choose to open your account in nationalized (public sector) banks, private banks or even paperless online banks like DIGI Bank by DBS. But it is important to choose an account for savings, that best suits your needs. Here’s everything you need to know about the different savings accounts in India.

Basic/Regular savings account: Almost everyone who has a bank account usually begins with a basic or regular account for savings. There is no limit to the amount of money you can deposit into this type of account; however, you must adhere to the daily withdrawal limit set by the bank. Additionally, you get a limited number of ATM withdrawals on the complimentary debit card that comes with this account. You also get a free chequebook with this account. You must also maintain an average monthly balance in this account.

Joint Accounts: Banks allow you to open a savings account with members of your family. A joint account can typically include 2 or more individuals in different permutations and combinations. It could be a couple, a couple and their children, a single parent and his/her child/children and so on. The account can be controlled by more than one individual who can withdraw and deposit money into the account. Every account holder receives their own debit card; however the group must adhere to the joint withdrawal limits.

Salary Accounts: Commonly known as zero balance accounts, salary accounts are opened for individuals by the companies in which they are employed. Salary accounts typically allow its account holders to withdraw all the funds from the account, with no need to maintain an average monthly balance. They are opened instantly, and come with a debit card that may or may not have your name imprinted on it, along with a free cheque book.

Pradhan Mantri Jan Dhan Yojana Account: In August 2014, Prime Minister Narendra Modi introduced the Pradhan Mantri Jan Dhan Yojana account to facilitate people from all walks of life to be able to open a savings account. With this special account, customers no longer have to maintain a minimum monthly balance. This account comes with a special Rupay debit card. Furthermore, it comes with a free accidental and insurance cover worth ₹100,000 and ₹30,000 respectively.

Other than these accounts banks also allow Individuals over the age of 60 years to open a senior citizen’s account, women over the age of 18 to open a women’s savings account and minors under the age of 18 to open a minor account. Each of these account come with their own benefits.