Nobody wishes to have their hard-earned money fall into the wrong hands. We endeavor to keep it safe for current and future use. Depositing money in banks’ savings account is a trend that has been around for decades.
A majority of the Indian population has one or more savings accounts. Such accounts are preferable due to their convenience. Moreover, opening a savings account is a good investment, as you earn interest every year.
Due to technological advancements, opening a savings account has never been easier. Most banks offer online and mobile app services. The options allow you to get an account by simply dialing a number; thus, no need to visit the bank physically.
So, what are the benefits of opening a savings account?
- Safety – We can never predict incidences or accidents. Hence, open a savings account to protect your money from loss or damage.
- Easy account-opening process –Most banks do not demand many requirements from customers when opening a savings account. Others have online and mobile services where clients can register for an account in minutes.
- Liquidity – Savings accounts are easily accessible, unlike fixed accounts. In case of an emergency, you can withdraw money from the savings account.
- Convenient money management – A savings account is open to many options. You can deposit, withdraw, or transfer money conveniently.
- Investment – A savings account is one of the best investment options, as the account earns you interest after some time.
Types of Savings Accounts
- Regular Savings Account – It’s a savings account based on a bank’s fundamental terms or service.
- Salary–based Savings Accounts – Most employers open savings accounts for their employees and send monthly contributions directly from their salaries.
- Savings Accounts for Women – They’re exclusive and beneficial to women.
- Savings Accounts for Senior Citizens – Such accounts only serve the senior citizens and usually have higher rates than regular savings accounts.
- Zero Balance Savings Accounts – They are savings accounts that do not charge penalties when the account holder’s balance falls below the minimum amount.
- Savings Accounts for Minors – Parents or guardians open such accounts to save money for their children (below the legal age). They can use these finances to educate them or as an investment plan.
Now that we have covered various types of accounts, let us highlight several factors that you should consider when choosing the ideal bank to open your savings account.Banks for Savings Accounts in India
- Minimum Balance Requirements – Most private banks will require you to maintain a minimum amount of money for your account to remain active. You will incur some charges if your account falls below this threshold. However, some banks have zero-balance policies.
- Interest Rates – Most banks offer interest rates between 3% and 4%. Some banks may give up to 5% interest for large amounts of money. You can consider such a bank to get good returns from your savings.
- Customer Service – It’s preferable to choose a bank with impeccable customer support.
- Available Facilities – Consider a bank with reliable and effective facilities, including mobile banking apps, online services, and ATM access.
- Charges – Before choosing a bank, check out for extra or hidden charges.
- Availability of Branches – A bank with various branches across the country is a perfect choice, especially for frequent travelers.Banks for Savings Accounts in India
Best Banks to Open Savings Accounts in India
Kotak 811 Savings Account – Fastest Online Account Opening
Kotak Mahindra Bank’s 811 Edge is one of the best savings accounts in India. The account is ideal for clients seeking high returns from a zero-balance account. Unique features of the 811 Edge account include:
- It has the fastest online account-opening process.
- It offers up to 4% interest rates.
- The account has a zero balance minimum requirement.
- Its scan-and-pay feature allows account holders to make in-store purchases.
IndusInd Bank Savings Account – 3-in-1 account with Upstox
IndusInd Bank’s savings account is ideal for investors in the stock market. The account offers among the highest interest rates in the country. Moreover, the bank allows account holders to open a 3-in-1 account for stock trading.
Here are additional features:
- The bank offers a 7.5% interest per annum for the savings account.
- It is a zero-balance savings account.
- You can earn rewards through card transactions.
- It allows cashback options via the Indus Money Program.
- The bank provides the savings account’s monthly e-statements.
- It allows account number customization.
- You can also earn interest from stock trading funds.
- The bank has no brokerage charges for delivery.
ICICI Bank Savings Account – Best Technology
If you love high-tech services, ICICI bank is a perfect choice. You can access your savings account on ICICI bank any time on your desired device. The account has various unique characteristics, including:Banks for Savings Accounts in India
- It has a user-friendly interface.
- ICICI bank has a top-notch iMobile banking application.
- The bank offers 24/7 customer support.
- It is the leading bank in advanced technology.
- ICICI has several savings accounts, including the Regular, Gold, Silver, and Platinum accounts.
HDFC Bank Savings Account – For Best Products
HDFC is a prestigious banking institution that offers high-quality and customized products. The bank’s savings accounts earn 3% to 3.5% interest rates per annum. There are several types of savings accounts, such as DigiSave Youth, Saving Farmers, Kid’s Advantage, and Savings Max accounts.
Additional features include the following:
- The bank has unique products, such as HDFC Smart Buy, Diners Club Black Debit Card, and personal loans on ATMs.
- It also offers premium solutions to tax payments, insurance, investment, and portfolio management. Premier services require minimum balances between Rs. 1 Lakh to Rs. 10 Lakh.
- The bank has online and mobile banking options.
- It also offers Payzapp, Smarthub, and Samsung pay options.
Axis Bank Savings Account – For Good Services
Axis Bank is ideal for clients seeking exceptional services and additional benefits. The bank offers rewards in various instances, such as account opening and making ECS transactions. The bank’s interest rates range between 3% and 3.5% per annum. Due to its high-quality services, Axis bank has won several accolades.
Here are more appealing features:
- Clients enjoy discounts at restaurants that have partnered with Axis bank.
- It provides preferential prices to Demat holders and lockers.
- The bank has several savings accounts, including Easy Access, Prime, prime Plus, Priority, and Burgundy.
- It has mobile and net-banking services.Banks for Savings Accounts in India
Citi Bank Savings Account – Global Presence
You don’t have to worry about running out of cash when traveling around the word with a Citi Bank’s savings account. The bank has numerous branches in 42 countries; hence, a global banking institution. It also provides exceptional solutions, such as Wire and Global Transfers, Foreign Currency Draft, and Automated Clearing House.
More features include:
- It offers free e-mail and SMS alerts.
- Clients enjoy zero charges in Citi Bank’s affiliated Indian Oil outlets.
- It provides receipts for its easy money transfers.
IDFC Bank Savings Account – High Interest Rates
IDFC Bank offers significantly higher interest rates than other banks. The rates for savings accounts range from 6% (below Rs. 1 Lakh) to 7% (Rs. 1 lakh to Rs. 10 Crore). The bank charges for some transactions, such as replacing debit cards and checkbook re-issuance.Banks for Savings Accounts in India
Other features include:
- IDFC has mobile and net banking services.
- It supports free online bill payments with receipt generation.
- IDFC offers unlimited funds transfer.
- The bank provides free ATM transactions.
Savings accounts are an essential investment component. Interest rates, customer service, and available facilities are among the vital factors you should consider when choosing the best bank to open your savings account.