Most banks have segmented savings bank accounts based on your needs. The higher balances that you are willing to maintain, the better services you will get. So, don’t just look at the interest rates when opting for a bank account.
You will also need to maintain the specified balance based on the account type, which can vary from one bank to another. For example, small savings banks can ask a monthly average balance (MAB) of Rs 5,000 in metros and Rs 2,500 in non-metros. Large private banks may require Rs 10,000-15,000 MAB in metros and Rs 500-1,000 in semi-urban areas. Public sector banks have the lowest MAB requirement.
If we take an example of SBI, The no-frills account—a basic savings bank deposit account—requires zero minimum balance, and there’s no limit on the maximum amount. But you don’t get free checkbooks, according to the bank’s website. Free withdrawals are only available at the bank’s branch or ATM. The customer gets a Rupay ATM-cum-debit card.
But if you opt for a savings account, you can get a whole host of services. There’s mobile banking, SMS alerts, 10 cheque leaves in a financial year, customers can transfer online. There is no requirement for minimum balance either. Then there’s the savings plus account. The bank account is linked to a deposit scheme. Whenever your account balance is above a specific limit, the money is automatically transferred to a deposit. Besides all the features of a savings account, the customer also gets a loan against the money transferred to the linked deposit, 25 free cheque leaves, the money transferred to the deposit earns higher interest.
There are premium accounts as well if an individual customer has Rs 30 lakh worth of relationship, that is, the money in a bank account, fixed deposit, mutual fund, and Demat crosses the threshold. If there’s a new customer, the initial deposit should be Rs10 lakh, and within 12 months, the relationship crosses Rs 30 lakh.
According to the bank’s website, It’s also available for those with monthly salaries of Rs 2 lakh or more or if the home loan value is over Rs 1 crore.In large private banks, you can also get an instant savings account that can be opened online; there are women savings accounts that mostly offer benefits on shopping and children’s savings account for those below 18 years. Some may have a savings account for seniors catering to their pension needs. Therefore, check the MAB and account type best suited for you before signing up for one.