Not satisfied with your current bank and looking for opening an alternate savings bank Account to another bank or confusing about which bank is the best for opening your first savings bank account or maybe you want to diversify your funds to the different bank accounts. There may be several reasons for opening a savings bank account.
Here in this article, we try to cover the best savings bank account in India for opening your first or alternate bank accounts which can be the best suit your needs.
After the launch of Govt of India’s Pradhan Mantri Jan Dhan Yojana(PMJDY) under the National Mission for Financial Inclusion, almost 85% of Indians have already bank accounts with any of the Private or PSU banks in India, but this percentage was merely 53% in 2014.
Today, almost all household members have bank accounts, it may be a single or joint account, the main reason behind this is due to all the social benefits from any State or National Schemes only can be routed through the Individual Bank Account. Even students also have the bank account for direct credit for their scholarship money. Many of us already have multiple accounts with different banks.
In a vast country like India with more than 1.30 billion people, we have only 14.06 commercial bank branches per 100000 population which is way below the global average. But we have another contrasting fact that the number of deposit accounts with commercial banks per 1,000 adults are 1731.27 in 2016 (Data: IMF ‘Financial Access Survey’ 2017 – India statistics). That means on average every Indian has more than one bank accounts if we consider the above statistics from the IMF.
In a country like India, though everyone has a savings bank account, the choice of banks is very meager. In most of the rural areas in India, you will find only one or two PSU Bank branches where you have to open your savings account. If you stay at any Semi-urban or Metropolitan cities, you may get access to different Private or Foreign bank branches. Therefore, selecting the best savings bank account is somewhat depends on your place of residence. Though you may open the Digital Savings Bank account with your Aadhaar and PAN Card, you need to complete the full KYC within one year of opening your bank account.
Before getting into the actual topic, let us have some idea about what types of savings account is suitable for you and how to choose the best savings bank account to cater to all your banking needs.
Types of Savings Bank Account in India
Savings Bank is a kind of demand deposit, i.e. you can withdraw cash from your Savings Bank account at any time as you want, though there is some certain restriction. Only four times you can withdraw cash from the branch with a paying slip, after that bank may deduct charges from your account. Savings Bank Accounts is the most important deposit product for any bank because banks have to pay a very low-interest rate, therefore banks can maintain a lower level of cost of fund.
Savings Bank Account is a Deposit Products of Banks, but it can be different types that are customized to serve the needs of the different categories of people. Different banks advertise these types of savings account by different names. But all the basic features of the savings accounts are the same. A savings account can be single or joint and personal or non-personal.
Here are the Different Types of Savings Bank Account you will find in India
1. Regular Savings Bank Account: This is the common savings bank account that is generally offered by every commercial bank in India. If you go to any branch to open any savings account, the bank will open these types of saving accounts. You have to maintain a minimum balance which depends on banks and the branch location, ie rural, semi-urban, urban or metro. If you fail to maintain the average monthly balance as per stipulation, banks may deduct charges from your account. You may get a free 25 leaves Cheque book per Financial Year and a Visa/Mastercard or Rupay Debit Card. You will also earn interest on the daily average balance and it will be credited to your account twice in a calendar year. Interest up to Rs.10000.00 on savings bank account also is exempted from tax under section 80TTA.
2. Premium Savings Bank Account: You will get some added benefits like discounts on service charges or retail & SME loan products, discounts in health insurance premiums, upgraded debit card features, etc from your savings bank account. But you have to maintain high relationship value like high quarterly deposit balance in the savings account to get these added benefits.
3. Basic Savings Bank Deposit Account (BSBDA): We are some times also called it Zero Balance Account. You will get all the basic features of a regular savings bank account, but you won’t have to maintain any minimum balance requirement. You will also get a Rupay powered Debit card and Cheque book as per your requirement. As per RBI rule, all commercial banks in India have to open basic savings bank Account to Indian citizens if they wish to open such an account. But, in reality, any Private Bank or even the PSU banks won’t initially open these types of Savings Account.
4. Minor Account: These types of savings account for those people who are below 18 years of age. If the account holder is below 10 years old, then he or she has to open the account jointly with the Natural Guardian and signatory of the account will be the Natural Guardian or Court Appointed Guardian. If the Account holder is above 10 years old, he/she can open the savings account with their own signature. The limit of cash withdrawal is Rs.5000.00 up to the age of 18.
5. Women Savings Account: This is a type of savings account that is specially customized for women. The basic features are the same as the regular savings account. But in the case of Women Savings Account, some facilities are added to woo the women customers, and these facilities vary from banks to banks. Some of the add-on features are Health Card with a low premium, special discounts of interest rate on personal or retail loans, a special type of debit card, discount on Locker rent, etc.
6. Salary Account: A salary account is a type of savings account where your monthly salary will be credited. These are zero balance savings account with all banking facilities at par with a regular savings account. You will get a free Cheque book, debit cards and personal or retail loans with some discounts in the interest rates or processing charges. Some banks also offer auto swipe facility if the balance of the account reaches a certain amount, the amount automatically transferred to high-interest FD account. But, one thing you have to remember that the zero balance features may be withdrawn if the salary stops crediting in the account. The salary accounts can be a corporate salary account or individual salary account. Mainly large corporates open these types of accounts to process their salary directly to the account.
7. Senior Citizen Savings Account: These types of savings accounts are specially customized for senior citizens. The main features of this type of saving accounts are high-interest rate. Sometimes it also calls as Pensioner Account. Some Banks also waive the minimum balance requirement for the senior citizen savings account. All the Indian commercial banks have this type of account.
8. Pradhan Mantri Jan Dhan Yojana Account (PMJDY): It is also a zero balance savings account just like Basic Savings Bank Account, which can only be opened at the Business Correspondence location. The accounts can be opened by the Adhaar Card and capturing the fingerprint on a device or providing valid OVD (Official Valid Documents) like EPIC Id or Driving license etc. You can avail of all the regular savings bank account features with some limitations, you will get a free Cheque book and Rupay PMJDY Debit card. You can not convert a PMJDY Account to regular savings bank account. You can get a free overdraft facility up to Rs.5000.00 if the account is Adhaar Linked and personal accident insurance cover of Rs.1.00 lacs if you have a Rupay Debit card. All the facilities from the State or Central Schemes can be credited to the PMJDY Accounts.
9. Non- Personal Savings Bank Account: These types of savings bank accounts is not for individual persons but for non-personal entities like HUF(Hindu Undivided Family), Clubs, NGOs, Organisations or any other Government or Non-Government Authority. These types of accounts are also eligible for the interest income as applicable to the regular savings bank account. The accounts are only operated by the Cheque book and no debit card facilities available to the account holders.
10. Virtual or Digital Savings Bank Account: This is a kind of virtual savings bank account which only can be opened online from the bank’s official website or their banking apps. You will get the account number instantly just after completing the account opening procedures. You will also get a Virtual Debit card and all the banking facilities at par normal savings bank account. I have already written a detailed article on best digital savings bank accounts in India, you can read the article here
How to choose the best Savings Bank Accounts?
Most of us do not open a savings bank account for interest-earning, the interest rate on savings bank deposits is very low only 3.5 to 4%. Many banks are also reducing the interest rate on savings bank deposits. Some Private Banks may offer a higher interest rate, but the higher interest rate is applicable only if you have a deposit balance above a certain level like above 1.00 Lakhs. In reality, 90% of savings accounts holders maintain deposit balance below Rs.1.00 Lacs. For investment purposes in liquid schemes, all of us generally consider Banks’ FD or Mutual Funds for a longer time frame.
Here are some factors you should consider before opening a savings bank account in India.
1. Purpose: You must consider what is the actual purpose to open the savings bank account, for example, if you are a student, then you don’t need a savings account where you have to maintain a high minimum balance.
2. Good Number of Branch Location: Choose a savings bank account from a bank that has a good branch network at every place in India. If you are in a transferable job, then you need to shift your home branch frequently to your place of posting.
3. Interest Rate: High-interest rate is also one of the important factors you should consider if you want to maintain a high deposit balance. But don’t go with the high-interest rate advertisement of some banks, all banks have almost similar interest rate up to Rs.1.00 Lac savings bank balance and all banks have the auto-sweep to FD facility above certain deposit balance.
4. Good Number of ATM Network: Its a very important selection criteria for the savings bank account. You can withdraw cash from any bank’s ATM, but you have to pay charges after a certain limit in a month.
5. Technology: Today, in this era of digital banking, technology is the most important factor in choosing the best savings bank account. You should consider opening the savings bank account which has a very good mobile banking app and internet banking portal.
6. Low Charges: Private banks have very bad reputations in this matter, but they have superior service quality than PSU banks. It’s a personal choice, if you can pay higher charges, then private banks are more suitable than PSU banks.
7. Low Minimum Balance Requirement: PSU banks have a low minimum balance requirement, but their customer service and facilities on the savings bank account are not at par with the Private bank’s savings account. It’s also a personal choice.
8. Debit Cards: Private bank’s debit cards have lots of add-on benefits and a high withdrawal limit in ATMs. Some types of debit cards can also be used for EMI in many eCommerce websites.
9. Offers & Discounts on eCommerce websites: Some banks offer many discounts and cashback facilities in online eCommerce websites like Amazon, Flipkart, BookMyShow, etc regularly for the transaction done from debit cards or NetBanking. Therefore, these types of saving bank account are most suitable for online shoppers.
Factors considered for Selecting the Best Savings Bank in India
I have considered some key factors while selecting these top savings bank accounts. I have not considered the interest rate as a deciding factor in selecting these accounts. These factors are
- Trustworthy of the Bank
- Technology like Mobile and Internet Banking
- Value-Added Services
- Charges
- Branch Network
- Customer Satisfaction
- Offers and Discounts
Best Savings Bank Accounts in India
Savings Bank accounts is a deposit product of a bank, therefore we must consider the best, secure & financially stable banks for opening the savings bank account because a good bank also has the best savings bank account. I will recommend you don’t risk your hard-earned monies by selecting a financially unstable bank. Here, I will discuss the bank-specific different types of savings bank account which might suit your needs.
I have already discussed some best banks in India, you may read the article here
These savings bank accounts are also the best in the respective categories as discussed above in types of savings bank accounts in India. But you should always keep in mind that you will not get any insurance coverage of the savings bank deposit balance above Rs.1.00 Lac.
These are the list of best savings bank accounts in India
1.# Best Regular Savings Bank Account
Best Regular Savings Bank Account in India
| Parameters | HDFC Bank SB Account | SBI SB Account | BOB SB Account | ICICI Bank SB Account | Axis Bank SB Account | Kotak Bank SB Account |
|---|---|---|---|---|---|---|
| Trustworthiness | High | High | High | Average | Good | Good |
| Technology | Good | Very Good | Average | Excellent | Good | Good |
| Branch Network | Good | Excellent | Good | Good | Good | Average |
| Value-added Services | Excellent | Average | Average | Very Good | Good | Good |
| Charges | Very High | Medium | Low | Very High | Very High | Very High |
| Offers & Discounts | Excellent | Good | Poor | Very Good | Good | Good |
| Customer Satisfaction | Very Good | Poor | Average | Good | Good | Good |
A. HDFC Bank Regular Savings Account
Why you should consider it?
- Best and most valuable brand in the Indian Banking Sector.
- Wide range of banking Products from Insurance to Mutual Fund. HDFC MF is one of the top 3 AMC in India.
- Very good service from branch banking. A good number of ATMs and branches.
- Very good phone banking support.
- Excellent offers and discounts with many eCommerce websites.
- One of the safe online banking portal amongst the Indian Private banks. A large number of billers for online banking users.
B. SBI Savings Bank Account
Why you should consider it?
- The largest bank in India with a huge number of branches and ATM.
- Very good internet banking and mobile banking portal. A large number of billers for online payments.
- Low minimum balance requirement. Low service charges.
- Auto-sweep to Fixed Deposit to get the higher interest rate on your deposit.
- Good banking products like Mutual Fund, Insurance, Demat & Trading services, etc.
- Very good offers and discounts for debit card and savings account holders.
C. BOB Super Savings Account
Why you should consider it?
- The largest number of international branches.
- Good branch and ATM networks.
- Low minimum balance requirement and lower charges for banking services.
- Good mobile banking and internet banking.
- Good service quality amongst the PSU banks.
D. ICICI Bank Regular Savings Account
Why you should consider it?
- Most technologically innovative bank in India.
- A wide range of banking products.
- Well trained branch staff.
- A good number of branches and ATMs across India.
- Excellent mobile banking and internet banking portal. A large number of billers for hassle-free online payment.
- Very good offer and discount programs for savings account holders.
- Earn Rewards points with Payback.
E. Axis Bank Regular Savings Bank Account
Why you should consider it?
- Wide ranges of banking products.
- Very good mobile banking app and internet banking portal.
- Good branch and ATM networks.
- Well trained branch staff.
- Very good merchant discount programs for debit card and savings account holders.
F. Kotak Bank Edge Savings Account
Why should you consider it?
- Good Mobile and internet banking portal.
- The higher interest rate for balance over Rs.1.00 Lacs.
- High withdrawal limit on Debit Card.
- Well trained branch staff.
- Good Phone banking support.
- Discount programs for the transaction made through Debit card and net banking.
2.# Best Premium Savings Bank Account in India
If you are looking for the best premium savings bank account in India, then these are the best premium account you can consider
A. HDFC Bank SavingsMax Account
Best Premium Features:
- Free Personal Accidental Hospitalisation cover of Rs 1 lakh per year.
- free unlimited ATM transaction at HDFC Bank ATM points with a high cash withdrawal limit.
- Free international debit card for all account holders.
- Discount in service charges.
- Auto sweep to Fixed Deposit facility above Rs.1.00 lakh deposit balance.
Monthly Average Balance (MAB): 25000.00
B. ICICI Bank The One Savings Bank Account
Best Premium Features:
- Discount in services charges for retails loans.
- The upgraded international transaction enabled Visa debit card and unlimited cash withdrawal at any bank’s ATM.
- Discounts in brokerage fee and annual maintenance charges for Trading & Demat account holders.
- Merchant discount with websites like Zomato, BigBasket, SRL Diagnostics.
Monthly Average Balance (MAB): Rs. 1.00 Lacs (For Magnum Variant), Rs.2.00 Lacs (For Titanium Variant)
I am not very much fond of a premium savings bank account, because it does not make any sense to keep a high average monthly balance on a savings account. You won’t find any difference in the service quality from the branch officials if you are a premium account holder of the bank. These are all marketing gimmicks of the banks to increase their low-cost deposits.
3.# Best Salary Accounts in India
Only criteria of these types of accounts that the salary should credit to this account, otherwise the account will be converted to a regular savings bank account and you have to maintain MAB. Salary accounts are best for obtaining retail loans from the bank.
Best Salary Accounts in India are
A. Citibank Suvidha Salary Account
- Premium and global class Banking services but not good for bill payments in India.
4.# Best Senior Citizen Savings Account
A. HDFC Bank Senior citizen Account
- High insurance coverage for Debit Cardholders without paying any premium.
- Good for hospitalization and other health products.
B. Axis Bank Senior Privilege Savings Account
- Attractive benefits for health products.
C. Baroda Senior Citizen Privilege Saving Account
D. Kotak Bank Senior Citizen Account
- Great benefits for health products.
5.# Best Savings Account for Students
If you are a student and looking for a best savings bank account, then I will recommend you to select the account which requires the lowest minimum balance requirement and has the all the banking facilities and a very good mobile banking and NetBanking portal.
Here’s my choice for the best savings account for the student
A. SBI Regular Savings Bank Account
- MAB- Rs.3000.00 (Urban Areas)
B. Axis Bank Youth Savings Account
- MAB- Rs.3000.00
C. Kotak 811 Account by Kotak Mahindra Bank
- MAB- Nil
D. Indus Online Savings Account by IndusInd Bank
- MAB- Nil
E. BOB Super Savings Account
- MAB- Rs.1000.00
6.# Best Savings Account for Women
There is not so much difference between a Regular Savings Account and a Women’s Savings Account, some banks offer some added benefits like premium discounts in Health Insurance, Discounts in Locker Rent or interest rates on Retail Loans like Housing Loan or Car Loan. But, before opening any women-centric savings bank account, carefully compare the features and benefits which will suit your needs. Otherwise, I will recommend you to open the Regular Savings Bank accounts as discussed above in the article.
These are some best Savings Bank Account for Women
A. Bank of Baroda Mahila Shakti Savings Account
B. HDFC Bank Women’s Savings Account
C. ICICI Bank Advantage Women’s Savings Account
D. Kotak Bank Silk Women’s Savings Account
7.# Best Digital Savings Bank Account in India
Digital Savings Bank Account is the complete online process of opening a savings bank account where you will get a virtual Account Number immediately after completing the account opening procedure. I have already written a detailed article on the best Digital Savings Bank Accounts in India.
Here’s the list of some best Digital Savings Bank accounts in India
A. Kotak 811
B. Axis Bank ASAP
C. Digisavings by DBS Bank
D. Indus Online Savings Account by IndusInd Bank
Final Word
Here’ in this article, I try to cover only the savings bank accounts offer by the best commercial banks in India, I did not include any Payments Bank’s accounts, because there are so many limitations in Payment Bank’s Accounts and the future of Payment Banks is not looking very promising.
I also have not mentioned the Basic Savings Bank Deposit Account (BSBDA) in this article, though you can open BSBDA account from any Commercial Banks in India, still, I won’t recommend you because these types of Account has so many limitations. If you are looking for a Zero Balance Account, then the Digital Savings Accounts are the best option.
You can open your savings bank account from any bank you wish, but one thing you must keep in mind, always choose the best & financially stable bank to open the savings bank account, otherwise, you may risk your hard-earned monies for nothing.
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