WHAT IS A SAVINGS ACCOUNT?
A savings account is held at a bank or other financial institution as an interest- bearing account. These accounts usually pay a moderate interest rate. This is a deposit account that an individual keeps with a bank or any financial institution that provides principal security with the modest interest rate. This account is considered to have high liquidity so that one can withdraw the amount at any point of time.You can open free savings account with creditkaro.com.
Savings account pays interest to the account holder and the deposited funds are easy to withdraw, which is a good option for liquidity in case of an emergency.
Savings account generally earn you lower rate of interest than other saving instruments and investment models.
The interest that you earn from savings account is considered as taxable income.
BASIC SAVINGS ACCOUNT
This is a deposit account that an individual keeps with a bank or any financial institution that provides principal security with the modest interest rate. This account is considered to have high liquidity so that one can withdraw the amount at any point of time.
This is a type of account where the salary of an individual is usually disbursed. In this account the minimum balance clause is waived off and is restricted to one account per person.
This is a type of account is usually handled by multiple account holders. Banks allow 2 to 4 account holders for a single joint account currently.
WOMAN’s SAVINGS ACCOUNT
This type of account is only provided to a woman and holds special features and interest rates applicable..
MINOR’s SAVINGS ACCOUNT
This type of account is held by an adult, making a minor child its secondary holder. Generally, Parents open this account for their children in order to help them save money for themselves.
SENIOR CITIZEN’s SAVINGS ACCOUNT
This is an account which is offered only to people who are above the age of 60, this account holds special features and waivers accordingly.
|SAVINGS ACCOUNT||CURRENT ACCOUNT|
|Savings account is relevant for those who are looking to save money.||Current accounts are designed for regular large size transactions|
|Savings account accrues higher interest.||Current account accrues lower interest than a savings account|
|Savings account cater to individuals.||Current account caters to companies and firms.|
|Savings account has a monthly transaction limit.||Current account does not have any transaction limit.|
|Minimum balance requirement is low compared to current account.||Minimum balance requirement is more than any savings account.|
|Rate of interest varies between 3.25% to 7.00%||Rate of interest is nil.|
|Overdraft facility is not allowed.||Overdraft facility is available|
|SAVINGS ACCOUNT||FIXED ACCOUNT|
|Savings account allows you to savemoney in the bank and earn intereston it, but that amount can bedeposited and withdrawn at any pointof time.||Incase of fixed deposit a fixed sum ofmoney is deposited for a fixed periodand withdrawal is only allowed afterredemption date.|
|Savings account is suitable for atemporary period.||Fixed deposit is suitable in case oflong-term investments.|
|Savings account offers facilities likeonline banking, phone banking, ATMfacility, cheque book facility, ECS,NEFT, RTGS.||Fixed deposits offer the facility ofavailing loan against it withoutbreaking the FD.|
|Rate of interest range between 3.25%to 7.00%||Rate of interest range between 3.00%to 9.25%|