The different types of savings accounts: Which one is right for you?

Posted on Tuesday, September 12th, 2023 | By IndusInd Bank

When it comes to keeping your money safe and simultaneously earning interest on it, savings accounts are a reliable choice. There are many types of savings accounts to choose from, including the ones that are specifically tailored for women and senior citizens. With so many options available, it is easy to find an account that aligns with your unique needs and preferences.

 Let us explore the different types of savings accounts and discuss their specific features and benefits, besides finding out the ones that would align with your needs.

Understanding savings accounts 

Savings accounts allow you to deposit and withdraw funds. These accounts serve as a secure place to park your money and allow you to receive interest on the balance amount.  

Online savings accounts provide you with useful banking features like ATM access, online banking and mobile banking. Additionally, you can effectively manage and transfer your funds via these accounts from the comfort of your home. 

Features of savings accounts 

Here, we will discuss some key features of savings accounts: 

Interest earnings 

Savings accounts offer attractive interest rates on the deposited funds. This helps you earn returns on your savings.  

Liquidity 

You can easily withdraw money from your savings accounts through ATMs, cheques, online transfers, and demand drafts. It is one of the most liquid avenues to deposit your money. 

Accessibility 

You can access your money deposited in the savings accounts anytime and from anywhere. Most savings accounts provide ATM debit cards for convenient cash withdrawals. You do not need to visit the bank to withdraw your money. 

Online banking 

With digitization, more customers are moving towards online banking. You can access your accounts, make transactions, download statements, and manage your finances through online banking platforms and mobile applications. These days, you can even open your savings accounts online.  

Security

Savings accounts are regulated and insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to a certain limit. This ensures the safety of your deposited funds (up to ₹5 lakhs). However, you should ensure that the DICGC covers your bank or financial institution. 

Attractive rewards 

In exceptional cases, savings accounts also offer attractive rewards and cashback. For instance, the IndusInd Bank online savings account offers discounts on top brands across different categories, including Swiggy, BigBasket and BookMyShow.  

Types of savings accounts  

We discuss below the various types of savings accounts along with their key features: 

• Regular savings accounts: This is the standard type of savings account offered by all banks. It comes with the usual banking features, such as interest earnings, ATM access, online banking, and a chequebook facility. Unless specified otherwise, savings accounts are by default opened as regular savings accounts. 
• Women’s savings account: These accounts are exclusively for female account holders. They often offer additional benefits, such as discounts on bank lockers, special discounts on loans, and exclusive access to financial seminars aimed at bringing financial literacy and awareness among women.  

For instance, the Indus Diva Women’s Savings Account is a women’s savings account that is designed keeping in mind the needs of new-age women. It offers various benefits, including 35% off on lockers, free movie ticket offers (buy one get one), and free family accounts for up to 2 family members, among others. You can save up to ₹23,000 across various benefits each year.  

• Kids’ savings accounts: These accounts are tailored for minors and allow them to develop saving habits from a young age. They often come with features like parental controls and educational initiatives to teach children about money management. 
• Senior citizens’ savings accounts: Catering to the elderly population, these accounts are exclusively available for senior citizens (people aged 60 years and above) and offer higher interest rates. Senior citizen savings accounts offer additional benefits such as preferential treatment at branches and waivers on certain charges. 
• Family savings accounts: This type of account allows multiple family members to pool their resources into a single account. This makes it easier to manage finances collectively as a family. 
• Salary account: Offered to employees by their employers, a salary account ensures hassle-free salary deposits and provides several benefits. Some of these benefits are free ATM transactions and preferential loan terms. Companies often tie up with a particular bank to open the salary accounts of all their employees. 
• Instant online savings accounts: These accounts are designed for the digital-savvy generation. It allows you to open your account instantly through online platforms without visiting a bank branch.  
• FD-linked savings account: While savings accounts offer convenience, they provide modest interest rates. Fixed deposit (FD)-linked savings accounts are meant to mitigate this. These accounts automatically transfer excess funds from your savings account to a fixed deposit. Hence, you do not lose the flexibility that a savings account offers. This helps optimize returns while maintaining liquidity. 

For instance, the Indus Multiplier Max Savings Account automatically converts your savings account balance above ₹20,000 into multiple FDs of ₹1,000. This helps you earn higher returns. You can access funds from your FDs whenever you need them and pay via your linked FDs when your account balance runs low. 

Conclusion 

The several types of online savings accounts reflect India’s commitment to financial inclusivity and customisation. Each account type caters to specific needs and ensures that you can find an account that suits you.  

Whether you are a student, a working professional, a senior citizen, or a parent – there is an account designed to cater to your requirements. By understanding the features and benefits of these account types, you can make an informed decision about which savings accounts align with your financial goals and lifestyle.  

As the Indian banking sector continues to evolve, the diversity of savings accounts ensures that banking services are not a one-size-fits-all solution. It is a tailored experience that empowers you to efficiently manage your finances. All you need is to select the right bank to hold your account. 

Opening a savings account with IndusInd Bank is all about experiencing new-age banking services. With digital account opening, you can open your account anytime from the comfort of your home. You even have the flexibility to choose your own account number via the MAMN (My Account My Number) facility. You can easily manage your account via the IndusMobile app. Explore the different types of savings accounts from IndusInd Bank and find the one that suits your unique needs. Apply now!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author 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.