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What Are Different Types of Savings Bank Accounts?

There are different types of Savings Bank Accounts. After providing the bank address proof, photo identity proof a savings account is opened. There are different types of savings accounts. They are as discussed below:

– Normal Savings Account: These accounts have no special features. They can be operated by maintaining a minimum balance daily or an Average Balance per quarter.For Government Banks the daily balance is 1000 rupees and for private ones the average balance per quarter is 5000 rupees.

– No Frills Account: These are mainly zero balance accounts meant for deprived classes of society. But these accounts come with lot of rules and regulations. Axis Bank, H D F C and Corporation bank are some institutions those offer No Frills Accounts.

– Salary Account: In these accounts employees’ salaries are deposited and hence they are zero balance. These accounts also come with overdraft facility that is calculated keeping the amount of salary drawn in mind.

Pension Account: In these account, pension is deposited and hence it is also zero balance. Axis Bank offers zero balance pension accounts.

Woman’s Account: Institutions like Axis Bank, Corporation bank etc provide special account or women keeping specific demands in mind.

Child Account: These are also zero balance in nature. They are structured in such a manner to inculcate the habit of savings in growing children.

Conclusion: Today Savings Bank Accounts come with so many features like ATM, better service, anywhere banking and even credit cards. H S B C bank offers free credit card to its account holders subjected to terms and conditions.

Public Savings Bank Card

A Public Savings Bank Card is secured card and issued by an FDIC insured bank that is located in the state of Pennsylvania. It is a great way for people that have no previous history to start to build their credit worthiness. Applications are also considered from those who have experienced past problems, and would like to build some positive history.

This type or offer works in largely the same way as a traditional card, and is accepted for purchases anywhere that you see the Visa or MasterCard logo. There is however one key difference. Users are required to place an initial deposit on their account. This money then acts as a guarantee in case you default on your payments. If managed well and closed on good terms, the deposit will be refunded in full. Bear in mind though that this deposit will not be earning interest while it is withheld.

There is a minimum deposit of $200, and this deposit will be used to establish your limit, as you will be given a limit equal to your deposit, up to a maximum of $3,000. After you account has been opened you may add to your deposit, which will increase your limit on a dollar for dollar basis.

There are a number of benefits for example it will report monthly to all three major bureaus. This is a great benefit over a prepaid or debit card, as these types do not offer this facility. There is also an introductory rate of 0% APR on purchases for 6 months, a $0 fraud liability, free 24-hour online account access, and online and telephone support to contact if you have a problem.

The application process is relatively easy. Most people apply online, and once the Public Savings Bank receives your deposit and verifies your identification, social security number and address you will be approved. There is no actual credit check as the bank isn’t taking on any real risk because of your down payment. Additionally there are a variety of methods to open this account that secures your card.

The Public Savings Bank Secured Card is a better option than a prepaid visa card, as it allows you to build your FICO score. If, however, you have previously managed your finances well, you should consider applying for a standard card, which will not require you to make an upfront payment. And remember to always read the full terms and conditions for any financial product before applying.

Looking for the Right Bank

There are various factors you need to consider when choosing a bank to handle your finances. Firstly, it is important to note that banks are profit organizations and their primary goal is to maximize profits for their shareholders. This means that all their programs, products and services are geared to making the most profits from your financial transactions. Therefore, on your side, you must select the bank that gives you the most value for the services that they give you. Keenly review the terms and conditions, their fees and their products to get any hidden costs before settling for a bank. There are different types of banks and each type has its advantages and disadvantages.

Traditional Banks

Traditional banks provide us with a convenient way of accessing our funds and making payments for bills and other payments. They have a large network of ATMs that make it easy to withdraw our funds and make deposits whenever we need to. However, banks are known to have excessive and hidden fees that eat into our finances. It is therefore important that you shop for a bank that charges less fees and still gives you quality services.

Online Banks

Unlike the traditional banks, online banks have reduced fees and they give a higher interest rate on savings. This makes the banks ideal for a savings account. Opening the account and operating the account is easy since you can open and transact from the comfort of your personal computer. Some online banks will even reimburse you ATM fees since they do not have their own ATMs. However, the pitfall of these bank account types is that it is hard to make deposits.

One way of capitalizing from both types of banks is to have a checking account with a regular bank to handle all your transactions with convenience. However, ensure that you get a low-fee bank to reduce on your banking expenses. You can then have an online account linked to your checking account to maintain your savings so as to gain from the high interest rates.

Credit Unions

Credit unions are banks that are run as non profit organizations. The banks are owned by the members. Since they are not driven by the profit agenda, they have a much lower fee structure. However, many of these credit unions have fewer ATMs and their accessibility are not as convenient as those of traditional banks. When considering whether to open an account in a credit union, you should check for the services they offer for supporting small businesses. Some credit unions do not offer facilities and services for small businesses. You should also check whether they have advanced online banking that provides online-bill-pay services.

Points and Reward System

Most major banks offer a points and reward system on their credit cards. Reward points are accumulated any time you spend using the credit card. When considering whether to join such a scheme, you should actually consider whether you will ever use such points and what it takes to redeem such reward points. There is no need of applying for the reward system if you will never get to use the points. You should also check whether such a system is free or you are charged an ongoing cost once you join the system.