Types of Savings Accounts: Which one should you open? 

If you have recently started your financial journey and are wondering which savings account you should open, then you have landed on the right blog. It is completely natural to get confused regarding different types of savings accounts. There are various features, perks, and requirements for various savings account types. Whether you are saving for an emergency fund, vacation in holidays, or your child's education, opening the right savings account can make a huge difference.

In this blog, we will explore the various types of savings accounts and their features and perks. Thus, you can easily choose the one that matches your financial requirements. Let's begin with the basics. 

What is a savings account? 

A savings account is a financial service often offered by banks and other financial institutions to help people store and grow their money safely. You can access a savings account through both online and offline platforms. It simplifies transactions and also gives you access to services like ATMs, debit cards, mobile banking, internet banking, and others.

Types of Savings Accounts:

There are five major types of savings accounts that serve a specific purpose and meet the various needs and goals of account holders. Whether you want to open a basic account to manage everyday savings or something that will help grow your wealth faster, it is necessary that you have different savings account types. These are the different savings account options:

1. Regular Savings Account:

If you are new to saving, then this can be the perfect savings account for you. It is not just easy to open but also offers great flexibility and provides access to funds whenever required. In these accounts, there is often a minimum balance requirement, but it gives a straightforward medium to build your savings. It is perfect for people who want a simple, accessible savings account without too many prerequisites. 

Perks: Online banking, debit cards, mobile banking, and others. 

2. . High-Yield Savings Account:

There are many financial institutions that offer higher interest on the amount present in savings accounts. These are called high-yield savings accounts. Though it may require maintaining a higher minimum balance in these accounts, the returns can help accelerate your savings goals. 

Perks: Perks of Savings Account + Higher Interest 

3.  Zero-Balance Savings Account:

If you don't want to keep a minimum balance, then you can opt for a zero-balance savings account. As the name indicates, this account doesn't compel the holder to maintain any fixed minimum amount. It is highly suitable for students or anyone with limited or unpredictable income. 

Perks: No minimum balance, fewer restrictions and fees. 

4.  Senior Citizen Savings Account:

These accounts are specially built for senior citizens so they can get higher interest on their savings along with priority banking and even health-related benefits. These accounts are specially curated to make retirement easier and more rewarding. 

Perks: Higher interest, Health-related benefits, and priority banking services. 

5.  Kids/Minor Savings Account:

If you want to introduce your child to saving, then this is the perfect account for this purpose. These accounts can aid in the early development of children's financial literacy and frequently have parental controls. 

Perks: Limited or Controlled Withdrawals, Interest-Earning, and others 

It is not a difficult but indeed an important task to choose the right savings account. With multiple options available, you can narrow down your requirements and goals and open an account accordingly.