InvestorQ : What is a savings account?
Debbie Mascarenhas made post

What is a savings account?

Rishita Das answered.
2 years ago
Well, there are many types of saving account such as Savings account for senior citizens, Savings accounts for small children. Since you have not mentioned here I am talking about the basic understanding of saving account here;

Regular savings account

This account is used for those individuals who want to keep their money safe in a bank and do not make many transactions. Neither is there any regular money being deposited nor withdrawals being made.

Salary (savings) account

As the name suggests, it’s the account where you will get your salary. Banks have tie-ups with companies and offer them preferential rates and specific terms for salary accounts. At the last date of the month, on whenever salaries are credited, the bank withdraws money from the company account and disburses the required amount among the salary-based savings accounts opened for the employees.

Different bank offers certain interest rates as per the minimum average balance maintained in the account. Thus the rate differs from bank to bank. The interest rate of saving bank account ranges from 4% to 6.5% p.a.

As on Jan 2020, Bandhan Bank ranks high offering 6.55% following to Yes Bank and Kotak Mahindra.