Four Popular Private Sector Savings Account Options

A savings bank account is considered to be the most basic of investment instruments that an individual can possess. A savings account offers you a relatively modest return (3-6%) on the amount that you keep in the account while offering you immediate access to the money either via a debit card linked to the account at an ATM or at the bank via cheque. In fact, providing savings accounts is the primary business of a bank.

There is no limit on the number of savings account that an individual can maintain simultaneously however many banks specify a minimum balance requirement. If the balance in the account is less than the specified limit, the bank charges a penalty fee, which is deducted from the balance available in the account. Apart from the basic function of providing you with a safe way to manage your earnings, savings bank accounts may also provide a range of additional facilities such as access to online deposit accounts, a portal for recharging prepaid mobiles and online payment of utilities. For additional information and other savings account options that you can compare before taking your pick, use the Savings Account Eligibility Checker.

Let’s take a look at the savings accounts offered by four leading private sector banks:

Axis Bank

Axis Bank, which earlier operated as UTI Bank, is currently one of largest private sector bank in India. This bank is a popular option for savings account in India as it has multiple branches and ATMs in even the smaller towns across India. This bank is among the few private sector banks in India where an individual can open a PPF account, which, is a key tax saving instrument under section 80C.

HDFC Bank

The Housing Development Finance Corporation Bank, popularly known as HDFC Bank, is currently ranked as one of India’s leading banks. As a major player in the banking landscape, HDFC Bank boasts of extensive operations and a large network of banks across the country including many rural branches.

Citibank India

Citibank India, a fully owned subsidiary of the US-based Citi Group, is ranked among the premier private banks in India in terms of the facilities that it provided apart from basic deposit and withdrawal functions. Such add on services includes phone banking, rewards on debit card spends and various preferential banking services.

Standard Chartered Bank India

Standard Chartered Bank India is the wholly owned Indian subsidiary of Standard Chartered PLC, a leading UK-based multinational financial conglomerate. Standard Chartered Bank provides retail as well as business banking services in India apart from providing debt instruments like credit cards to its Indian customers.

The following table compares key features and charges of savings accounts provided by the above banks*:

*The figures provided in the table above are liable to change, log on to Paisabazaar.com for updated information. According to an RBI directive, maximum limit on withdrawal at other bank ATM is Rs 10,000, which is subject to revision later on. A range of benefits and charges may be applicable to your savings account as well, which differ based on type of account and the bank.