Updated on March 17, 2023
The term savings account refers to the bank account opened by an individual where they can deposit their money and earn nominal interest along the way. This account is one of the basic accounts by banks and some of the key features of this account include,
Nominal interest is usually at the rate of 2% to 7%, with a marginally additional interest rate for senior citizens.
Access to ATM cards, Debit cards, cheque facility, net banking facility, mobile banking facility, phone banking, and SMS banking facility.
Savings bank account can also be linked to bank FDs.
Individuals can open various types of savings accounts like joint savings accounts, zero balance accounts, senior citizen accounts as well as open a minor account (which will be supervised by the legal guardian till the child is of 18 years), etc.
Security of the amount deposited in savings account
Deposits of upto Rs 5,00,000 are insured through the Deposit Insurance and Credit Guarantee Corporation of India(DICGC). The bank in which your savings account is held will have to pay a premium to get this insurance from DICGC