Not satisfied with your current bank and looking to open an alternate savings bank Account to another bank or confused 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 that can 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, which may be a single or joint account, the main reason behind this is due to all the social benefits from any State or National Scheme only can be routed through the Individual Bank Account. Even students also have a 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 100,000 population which is way below the global average. But we have another contrasting fact the number of deposit accounts with commercial banks per 1,000 adults was 1731.27 in 2016 (Data: IMF ‘Financial Access Survey’ 2017 – India statistics). That means on average every Indian has more than one bank account 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 are staying in any Semi-urban or Metropolitan city, you may get access to different Private or Foreign bank branches. Therefore, selecting the best savings bank account 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.
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Types of Savings Bank Accounts in India
A Savings Bank is a kind of demand deposit, i.e. you can withdraw cash from your Savings Bank account at any time you want, though there some certain restrictions. 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 are 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 funds.
A Savings Bank Account is a Deposit Product of Banks, but it can be different types that are customized to serve the needs of different categories of people. Different banks advertise these types of savings accounts 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 accounts 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 savings accounts. You must maintain a minimum balance that depends on banks and the branch location, i.e. 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 checkbook 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 a 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 a high quarterly deposit balance in the savings account to get these added benefits.
3. Basic Savings Bank Deposit Account (BSBDA): We are sometimes 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 checkbook as per your requirement. As per RBI rule, all commercial banks in India have to open basic savings bank Account for 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 Accounts.
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 the 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 for cash withdrawal is Rs.5000.00 up to the age of 18.
5. Women’s 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’s Savings Accounts, some facilities are added to woo women customers, and these facilities vary from bank to bank. Some of the add-on features are a Health Card with a low premium, special discounts on interest rates on personal or retail loans, a special type of debit card, a 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 accounts with all banking facilities at par with a regular savings account. You will get a free checkbook, debit cards, and personal or retail loans with some discounts in interest rates or processing charges. Some banks also offer an auto swipe facility if the balance of the account reaches a certain amount, the amount is automatically transferred to a high-interest FD account. But, one thing you have to remember is that the zero balance features may be withdrawn if the salary stops being credited to the account. The salary accounts can be a corporate salary account or an 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 feature of this type of savings account is the high-interest rate. Sometimes it is also called a 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 with the Adhaar Card and capturing the fingerprint on a device or providing valid OVD (Official Valid Documents) like EPIC ID or driver’s 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 a 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 are 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 checkbook and no debit card facilities are available to the account holders.
10. Virtual or Digital Savings Bank Account: This is a kind of virtual savings bank account that 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 the 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 account holders maintain a 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 of opening a 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 Locations: 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: A 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 rates up to Rs.1.00 Lac savings bank balance, and all banks have the auto-sweep to FD facility above a certain deposit balance.
4. Good Number of ATM Networks: It’s a very important selection criterion for a 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 a savings bank account that 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.
9. Offers & Discounts on eCommerce websites: Some banks offer many discounts and cashback facilities on online eCommerce websites like Amazon, Flipkart, BookMyShow, etc. regularly for the transactions done from debit cards or NetBanking. Therefore, these types of savings bank accounts 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
- Branch Network
- Customer Satisfaction
- Offers and Discounts
Best Savings Bank Accounts in India
Savings Bank accounts are a deposit product of a bank, therefore we must consider the best, most secure & financially stable banks for opening a savings bank account because a good bank also has the best savings bank account. I will recommend you don’t risk your hard-earned money by selecting a financially unstable bank. Here, I will discuss the bank-specific different types of savings bank accounts that 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 for the savings bank deposit balance above Rs.1.00 Lac. (Updates: As per Budget2020, the insurance coverage on savings deposit has been enhanced to Rs.5.00 Lacs)
This is 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|
|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 Funds. HDFC MF is one of the top 3 AMCs 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 portals 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 ATMs.
- 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 Funds, Insurance, Demat and 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 offers 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 range 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 a balance over Rs.1.00 Lacs.
- High withdrawal limit on Debit Cards.
- Well-trained branch staff.
- Good Phone banking support.
- Discount programs for the transactions made through Debit cards 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 accounts 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 transactions 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 retail loans.
- The upgraded international transaction enabled Visa debit card and unlimited cash withdrawal at any bank’s ATM.
- Discounts in brokerage fees and annual maintenance charges for Trading & Demat account holders.
- Merchant discounts with websites like Zomato, BigBasket, and SRL Diagnostics.
Monthly Average Balance (MAB): Rs. 1.00 Lacs (For Magnum Variant), Rs.2.00 Lacs (For Titanium Variant)
C. Citi Gold Account
One of the best premium and global class banking accounts from Citi Bank with dedicated relationship managers helps you to grow your wealth, but the main drawback is the limited number of branches. Citi Bank branches are only available in Metro Cities and big cities. You can open a Citi Gold Account if you have a minimum yearly income of Rs.15.00 Lacs.
*Ownership of Citi Bank’s India is now transferred to Axis Bank.
Best Premium Features:
- Global Banking access, i.e. you can use the account anywhere in the world.
- Dedicated investment Manager.
- Door-step banking.
- Premium and feature-riched debit cards, earn rewards points which can be converted to cash.
- Many other exclusive benefits for Gold customers.
Net Relationship Value (NRV): Rs.1.00 Lacs.
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.
The only criteria for these types of accounts are that the salary should be credited 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 like housing loans or car loans from the bank.
Some banks also offer an advance salary of one month as an overdraft to their customers.
To choose the best salary account, you must consider the Internet banking and mobile banking facilities the bank provides to the account holders. Because a salaried person hardly has time to visit bank branches.
Here are the best salary accounts in India from the top Indian Banks
- Premium and global class Banking services with more than 200 billers in India.
- Overdraft limits up to 5 times monthly salary credit.
- Zero fee Feature-rich debit card with Citi Rewards points which can be readable to cash.
- Very good mobile banking App.
- You may avail of retail loans like Housing or personal loans with preferential rates of Interest.
- Very Good Phone Banking facilities.
- One of the safest banks in India for opening savings accounts.
- A large number of online billers for payment of utility bills or insurance premiums.
- Free Times Points debit card with a higher cash withdrawal limit and POS limit for shopping.
- Preferential Rate of Interest in Housing Loan or Personal Loan customers.
- Free personal Accidental death covers up to Rs.1.00 Lacs.
- Very good customer support and branch networks.
- A large number of banking products like Mutual Funds, Insurance, Credit cards, etc from a single platform.
State Bank of India has several salary account packages for different categories of employees like salary accounts for corporates, Central Government Employees, State Govt. employees, etc. According to your needs, you can choose the right package for your needs.
Although, SBI has withdrawn the minimum balance requirement for all types of savings accounts, and the Rate of Interest is 2.70% in all types of accounts.
SBI has four types of packages according to your Net Monthly salary, these variants are
- SILVER: Between 10000 to 25000
- GOLD: Between 25000 to 50000
- DIAMOND: Between 50000 to 100000
- PLATINUM: Above 100000
- Largest Bank in India with a huge number of branches and ATM networks.
- Safest Public Sector Bank.
- Low interest rate on Housing Loan, you might also get preferential treatment from the bank if you are a salary account holder of the bank.
- Very Good mobile banking and Online Banking portal.
- A large number of online Billers from different categories like Mutual Funds, Insurance, Gas, Electricity, etc.
- Very Good Credit Card Products from SBI Card, a subsidiary of SBI.
Axis Bank has different types of salary accounts according to the Monthly salary credit. Axis Bank Prime Salary Account is for those who have a monthly salary between 25000 to 100,000. You may choose a different variant if your salary falls into different categories. For more details, you may visit here.
- Feature Rich Visa Debit card with Rewards points and high cash-withdrawal limit.
- Personal Accidental Insurance covers up to Rs.5.00 Lacs.
- Very Good Branch and ATM networks.
- Good Mobile banking and Internet banking portal.
- Preferential Rate of Interest in Housing or Personal Loan schemes.
4.# Best Senior Citizen Savings Account
- High insurance coverage for Debit Cardholders without paying any premium.
- Good for hospitalization and other health products.
- Attractive benefits for health products.
- Great benefits for health products.
5.# Best Savings Account for Students
If you are a student and looking for the best savings bank account, then I will recommend you select the account that requires the lowest minimum balance requirement and has all the banking facilities and very good mobile banking and NetBanking portal. Now, Neobank or Online-only banks are providing customized banking solutions to the customers that can be best suited for the students.
Here’s my choice for the best savings account for the student
A. SBI Basic Savings Bank Account
SBI’s Basic savings account or BSBDA is so far the best account for students, because of several factors. The basic account of SBI does not require maintaining any minimum balance, and you will get all the basic banking requirements from the basic Savings Accounts.
- Zero balance account, lowest charges.
- Instant bank account opening through the SBI Yono App.
- Wide reach, tied up several educational institutes in India.
- Very good online banking and mobile banking app for daily banking requirements.
- MAB- Rs.3000.00
C. Kotak 811 Account by Kotak Mahindra Bank
Kotak 811 is a Video KYC based digital account, that has all the facilities required as a normal savings account.
- MAB- Nil
D. ICICI Digital Savings Account
Recently, ICICI Bank started to provide zero-balance video KYC-based digital account service in India, the account also does not require to maintain any minimum balance. You can visit here to open the ICICI Bank digital account.
- 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 on Health Insurance, Discounts on Locker Rent, and interest rates on Retail Loans Housing loans, or Car loans. But, before opening any women-centric savings bank account, carefully compare the features and benefits that will suit your needs. Otherwise, I will recommend you open Regular Savings Bank accounts as discussed above in the article.
These are some best Savings Bank Accounts for Women
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
C. Digisavings by DBS Bank
D. ICICI Bank Digital Savings Account
Here in this article, I try to cover only the savings bank accounts offered by the best commercial banks in India, I did not include any payment bank accounts, because there are so many limitations in Payment Bank 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 a BSBDA account from any Commercial Bank in India, still, I still won’t recommend you because these types of accounts have so many limitations. If you are looking for a Zero Balance Account, then 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, is always choosing the best & financially stable bank to open the savings bank account, otherwise, you may risk your hard-earned money for nothing.
Meanwhile, you may also like to read the other articles written in this blog…
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- Best Expense Manager Apps in India for Smooth Money Management
- Best UPI Payment Apps in India