What is basic savings bank account? How it is different from regular savings account? (2024)

FAQs

What is basic savings bank account? How it is different from regular savings account? ›

The Basic Savings Bank Deposit Account or BSBDA is a savings account that does not have a minimum balance even at the time of opening the account. You will get an ATM-cum-debit card without any fees, not even the annual maintenance fee. Deposit and withdrawal services are free of cost, and so is the passbook facility.

This savings account has all the features and benefits offered by the Regular Savings Account (except that it allows only four cash withdrawals in a month). The aim of the basic savings account is to provide primary banking services at a very nominal charge.

Zero Balance or Basic Savings Account

This is similar to the regular Savings Account, but unlike that account, you are not required to maintain any minimum balance for this account. It does, however, come with an ATM/Debit Card for your daily transactions.

A savings account is a good place to keep money for a later date, separate from everyday spending cash, because it offers safety, liquidity and interest-earning potential for your funds. These accounts are a great place for your emergency fund or savings for shorter-term goals, such as a vacation or home repair.

Banks are community, regional or national for-profit business corporations owned by private investors and governed by a board of directors chosen by the stockholders. Savings institutions (also called savings & loans or savings banks) specialize in real estate financing.

With a regular savings account, you commit to paying in a certain amount each month. In return, the bank or building society gives you a higher interest rate than you'd get with their current account or ordinary savings account.

If you don't qualify for a standard bank account, such as having a poor credit history, you might be offered a basic bank account instead. This has the same features, just without a cheque book or overdraft – so you won't be able to borrow money.

Basic bank accounts don't provide an overdraft, meaning you won't be a credit risk to your provider. You have no credit history – sometimes having no credit history can be just as damaging, as providers have no record of your ability to reliably borrow or spend responsibly.

Basic current accounts usually offer the same basic services you get with a standard account, but without a chequebook or arranged overdraft facility.

Who is eligible for basic savings account? ›

The following people are eligible to open a Basic Savings Bank Deposit Account: Resident Individuals (sole or joint account) Hindu Undivided Families. Customer should not be having existing BSBD Account with any other Bank.

Banks such as HDFC, ICICI, and SBI typically offer it with a low minimum balance and negligible interest. It is the best savings account India as it is a simple and easily accessible option for regular banking needs because it may be used for minor savings, bill payments, and recurring transactions.

There are different types of savings accounts to choose from, and they're not all alike. The options include traditional savings accounts, high-yield savings accounts, money market accounts, certificates of deposit, cash management accounts and specialty savings accounts.

The Basic Savings Bank Deposit Account or BSBDA is a savings account that does not have a minimum balance even at the time of opening the account. You will get an ATM-cum-debit card without any fees, not even the annual maintenance fee. Deposit and withdrawal services are free of cost, and so is the passbook facility.

The interest rate is higher, but unlike a checking account, a savings account typically does not have a debit card or checkbook. In terms of similarities, both accounts are flexible and protected by FDIC insurance.

Savings account benefits include safety for your savings, interest earnings and easy access to your money. However, savings accounts may have drawbacks, such as variable interest rates, minimum balance requirements and fees.

Accessibly: A Digital Savings Account provides its holders with complete access to all features, at any time of the day, from the comfort of their homes or office. However, to manage or operate a Regular Savings Account, the customer has to visit the bank branch within the working hours.

You can also add to your savings account whenever you like – either on a regular basis or when you have extra money to put in it. With a term deposit on the other hand, once you've made the initial deposit you won't be able to add any more to the balance until the agreed term has ended.