In the finance world, several kinds of bank accounts are available in the markets. The individual has to select one from the list based on his requirements. Each bank account has its own positive and negative sides and different kinds of features.
This blog post will explore different kinds of bank accounts and popular bank savings accounts interests like SBI, Axis, HDFC, and Post Office. Let’s see which one best suits you.
Table of Contents
1] Savings Account
Savings accounts are specially made for small-amount holders. Saving accounts provide some rate of interest to the people. Interest rates may vary from one bank to another.
Characteristics of Savings Account
1] Provide Interest: Savings account provides interest to the people. Although the interest rate is not much, it’s a simple procedure from the bank to make customers happy.
2] Limited Transaction: There will be a limit on the number of transactions the savings account holder can do.
3] No charges: Savings account does not include any kind of charges for maintaining the savings account in turn, they provide the interest on the money kept in the bank. One had to confirm with bank officials because some banks had different charges.
Some of the popular banks saving account interest rates.
| Sl No | Bank Name | Rate of Interest ( p.a) |
|---|---|---|
| 1 | SBI Savings account | 2.7 % to 3 % |
| 2 | IDFC Savings account | 3.5 to 6.75 % |
| 3 | RBL Saving account | 4 to 7 % |
| 4 | Kotak Mahindra | 3.5 % to 4 % |
2] Post Office Savings Account
Post Office Savings account is a kind of savings account that provide more interest rates on the money present in the account when compared to a traditional savings account. It would be worthwhile to consider the interest rates.
Post office savings account interest rate will normally be 3 – 4 % per annum.
Features of Post Office Savings Account
| Sl No | Type | Amount |
|---|---|---|
| 1 | Minimum Deposit | Rs.500 |
| 2 | Maximum Deposit | no limit |
| 3 | Minimum Withdrawal | Rs. 50 |
| 4 | Interest Rate | 4 % p.a |
| Sl No | Rate of Interest |
|---|---|
| 11 months to 11 month 30 days | 6.8 % |
| 1 year to 1 year 11 months 30 days | 6.9 % |
| 2 years to 2 years 11 months 30 days | 7 % |
| 3 years to 4 years 11 months 29 days | 7.5 % |
3] Current Account
Current Accounts are mainly built for the business where the daily transaction can be unlimited. But the banks do charge for the current account maintenance.
Characteristics of Current Account
1] Zero Interest: The main focus of the current account is to provide a way to quickly and easy of more the number of transactions, so for that reason, it does not provide any kind of interest on top of the balance amount.
2] More Transactions: This kind of account helps to make more transactions, withdrawals, and deposits. We can use different methods for this, including Direct debits, Oline Transfers, Checks, and Debit cards.
3] Charges Associated: There are different kinds of savings accounts, so the fees may vary based on the bank you choose and the type of account you want to open.
Conclusion
On the basis of one’s requirements and convenience, one has wisely selected the type of bank account. Before opting for any kind of account, one must check the interest rates offered by popular banks like SBI, HDFC, Axis, and Bank of Baroda. This will help to maximize the savings.
Zero balance current account opening online: Several banks offer zero balance current account opening, including Axis Bank, Bank of Baroda, ICICI Bank, etc.
FAQs on Saving and Current Accounts
1] Current account minimum balance?
The current account minimum balance should be managed at around Rs. 10000.
2] Current account is which type of account?
The current account is a non-interest-bearing bank account.
3] Similarities between savings and current accounts?
Common facilities offered by both of them are online banking, ATMs, Debit cards, etc.
4] Types of Current Accounts
- Standard
- Basic
- Premium
- Packaged
- Foreign
5] which bank gives the world the highest interest rate on saving accounts?
RBL provides up to a 7% rate of interest on savings accounts.
