2. What is Savings Account?
• A deposit account held at a bank or other financial
institution that provides principal security and a
modest interest rate.
• Depending on the specific type of savings
account, the account holder may not be able to
write checks from the account.
• Savings account funds are considered one of the
most liquid investments outside of demand
accounts and cash.
3. Types of Accounts
Traditionally banks in India have following types of
– Current account
– Saving account
– Recurring Deposit account
– Fixed deposit account
4. How Savings Account Work
• You open savings account with the bank.
• The bank pays you certain interest on the money
that you deposit in your account.
• The bank then loans that money out to other
people, only they charge a slightly higher interest
rate on the loan than what they pay you for your
5. How Savings Account Work
Loan given by Bank
Repayment of Loan
Interest paid on the
amount used by
6. Benefit of Savings Account
• Bank savings account are relatively safer and helps
save your money.
• The bank pays you interest on the money you keep
in your account.
• High-yield savings options
• Get started with minimal cash
7. Features of Savings Account
• Helps keep your money liquid with interest rates.
• You can use your account to shop online.
• Provides facility to transfer your money to other
• Now a days all banks provide with Debit card which
helps you remove money from your savings
account using bank ATM.
8. Saving Account VS Other Accounts
Savings Account Current Account
To promote savings To facilitate multiple transactions
Used by salaried person Used by Business person
Less amount required Higher amount required
4% to 6% interest rates No interest is paid
9. Banks Offering Savings Account
Name of bank Max. rate of interest
YES Bank 6%
Kotak Mahindera Bank 5.50%
IndusInd Bank 5.50%
Axis Bank 5.25%
ICICI Bank 5%