Savings has always been the need of the hour, regardless of your income, spending habits, or your age. Being one of the predominant factors in building financial stability, savings allows one to prepare themselves for the unpredictable nature of the economy.
No one could deny the need for saving, in fact, it is a culture inculcated in us since childhood through the practice of keeping a piggy bank. As we grow older we migrate from piggy banks to established banks and other financial institutions to safeguard our life savings.
So, what is a savings account? It is a simple interest-bearing account where you can deposit your funds for safekeeping with the bank, an easy and profitable way to protect your savings.
Moreover, apart from the obvious advantages of safekeeping, you can easily access these funds as and when you need them, which means it offers liquid cash to handle crisis situations.
And to add to it, even after withdrawing the required funds, the remaining funds will still earn you interest. Additionally, online saving account opening in the digital age has made banking even more convenient.
Different Types of Savings Account
In a study conducted during the pandemic, it has been observed that Indian households have saved around 7.1 lakh crore (7.1 trillion) rupees during the pandemic.
This proves the typical saving behaviour of the Indian population, which has significantly aided to cushion the financial stress the country faced during the pandemic. Catering to this behaviour, several banks usually offer different types of savings accounts, each depending on the need for the account, such as:
Regular savings account
A regular savings account is your basic savings account which acts as an account for your general customers who wish to deposit their savings. Sometimes these accounts come with a minimum balance requirement and daily limits, which is helpful if one wants to keep a check on their expenses.
Salary savings account
A salary savings account, as the name implies, is savings account for salaried individuals, usually set up by the organisation for which the applicant work.
The customer’s monthly salary is credited to this account by their establishment, and usually, such accounts do not require a minimum balance. Customers can use this account just like any other savings account.
Senior citizen savings account
A senior citizen savings account caters to the elderly. This bracket of society is usually dependent on their pensions and their savings, so banks offer savings accounts with special privileges and higher interest rates to help them in their retirement age.
Minor savings account
Minor savings accounts or children’s savings accounts are for those parents who wish to have an account for their children to save money for their futures or for the child’s own savings which often become a helping hand as they step into adulthood. There are banks that offer specialized savings accounts to students like Karnataka bank KBL Kishore account.
Women’s savings account
The social conditioning from patriarchal ideologies has driven women to the habit of saving for ages. A women’s savings account often offers special privileges to women to cater for their financial and lifestyle needs.
Moreover, banks help women avail easy business loans to them at affable rates to help them build a foundation for their entrepreneurial aspirations.
Availing of a savings account means freedom, security, and stability. In addition to serving as a safeguarding account, it also pays interest on any funds that are left after a withdrawal is made to cover expenses. ‘Do not save what is left after spending, but spend what is left after saving’ are famous words by Warren Buffet, one of the richest men in the world.
So keep these words in mind as you make your choice for the right kind of savings account that caters to all your needs, and start your savings journey.