What are the various types of Savings Account?
There are different types of savings account as following –
- Salary Account
In salary account minimum balance clause is waived off. There is no restriction on maintaining minimum balance. Salary account holders also enjoy the facility of maintaining zero balance.
- Joint Account
This account is operated by more than one account holders. Generally it for two account holders but now days banks are allowing upto 4 account holders for single account.
- Minor’s Savings Account
Minor account is of two types (i) account for below 10 years (ii) account for above 10 years.
- If the minor is below the age of 10 years, the account opens jointly with parent or guardian.
- If minor is above the age of 10 years and can sign, the account can be opened solely on the name of minor.
- Women’s Savings Account
Women savings account can be opened by only woman. Account holder enjoys special features like: Accidental death cover, accidental hospitalization cover, special discounts and offers on shopping using debit card, special interest rate discount on loans and high interest on idle money deposited in the account.
- Senior Citizen’s Savings Account
This savings account is generally opened by senior citizens, above 60 years of age. For this account tenure is fixed upto 5 years. And rate of interest is as decided by Ministry of Finance, time to time.
- Pradhan Mantri Jan Dhan yojana Savings Account
There is no minimum balance requirement and annual fees for this account. Additionally account holders enjoy the insurance cover of Rs. 30, 000 and accidental cover of Rs. 1 Lakh, that too without any charge.
What are the types of accounts based on minimum balance requirement?
Savings account is classified into 3 categories based on minimum balance requirement:
- Classic Account
- Gold Account
- Platinum Account
Classic Account: For Classic Account, the minimum balance should be Rs. 10, 000.
Gold Account: For Gold Account, the minimum balance should be in the range of Rs. 10, 000 and Rs. 25, 000.
Platinum Account: For Platinum account, you have to maintain more than Rs. 25, 000; usually it should be within range of Rs. 50, 000 and Rs. 1, 00, 000.
What is the difference in Savings Account offered by Private Banks and Public Banks?
The services offered on savings bank account by private banks and public banks are almost same in features. Still there are some differences like: minimum balance requirement is generally high in private banks and public banks offer many free of charge benefits.
How does a saving account become dormant?
According to RBI guidelines, the account becomes dormant if the customers do not make any transactions continuous for a period of two years.
How to active a dormant Savings Accounts?
In order to active a dormant account, you will have to:
- Contact your Branch Manager.
- Submit a written request to activate your dormant account.
- Produce and submit copies of current ID proof and address proof for verification.
- Initiate a transaction using cash or cheque to activate your account.