Compared to traditional India, more and more women are stepping up for financial independence and breaking up the male-biased working culture. Increasing access to education, government initiatives, social awareness and equal opportunity employers are a few of the core reasons for the growth in women’s employment.
Employment and business activities by women augment the use of savings bank accounts to carry out their day-to-day transactions. Various commercial banks in India offer attractive interest rates for women’s savings bank accounts. Other institutions provide the best savings accounts for women business owners with medical and insurance coverage.
Features of Women’s Savings Account
Below are some of the features of the best savings account for women:
- Financial Freedom
A savings account is essential to carry out daily personal and business transactions. A savings account, especially for women can ensure small saving habits and interest earnings on deposits for not just women entrepreneurs or business owners, but also for homemakers and labour-centric working women. Funds saved by woman contributes to the welfare of the family and ensures their financial freedom.
- Digital and Instant Services
Educated and working-class women usually take full advantage of the digital services offered by banks. Complete information on the best savings account for women is available online with instant fund transfer facilities. Homemakers and working-class women can avail of instant savings bank account options online with a few clicks.
- SIP and SWP
The savings account offer an SWP (Systematic Withdrawal Plan) for women to ensure higher savings with small timely withdrawal amounts set for every month. The withdrawal limit enables women to accumulate higher funds in the account. Similarly, female account holders might adopt a SIP (Systematic Investment Plan) to invest a fixed sum of money in mutual fund holdings every month.
- Proof of Financial History
Women entrepreneurs might need loans for business expansion or general liquidity, and working women might need loans for education and property purchase. A women’s savings account might help them with proof of their financial history, one of the mandatory documents for loan applications and credit score generation.
Benefits of Women’s Savings Account
- Fund Safety with Interest Earnings
Instead of the traditional way of saving hard cash and gold at their homes, working-class women are able to financially secure themselves by savings bits now and then. The funds reserved in the account are secured, and banks provide sufficient interest rates for the savings. The withdrawal of funds is allowed 24×7 by institutions through various services.
- Free Children’s Savings Account
It is a free add-on benefit provided to women with a savings account. The children’s savings accounts are usually zero balance accounts without certain charges compared to other account types. The mother has complete access to the children’s accounts, and it enables them to diversify their funds across both accounts.
- Insurance Cover & Fee Waivers
Insurance coverage is one of the best benefits offered when opening a savings bank account for women. Personal accident insurance, hospitalisation daily cash allowance, and accidental death cover are some of the perks offered to attract more women customers. Some institutions even enable AMC (Account Maintainance Charges) fee waivers, interest waivers on vehicle and personal loans, and free demat accounts.
- Investment Goals
The SIP facility for mutual funds allows women account holders to invest small amounts of their savings every month. Although with some risk, women can improve their investments by connecting their savings accounts with a demat and a trading account. This exposure leads them to create their portfolio holdings into various asset classes for long-term investment returns.
Also Read: Senior Citizen Investments: SCSS vs. Fixed Deposits
- Debit Cards and Cashback Offers
Almost all institutions offer debit card and credit card facilities based on savings accounts. The digital payment methods by debit cards and vendor acceptance allow women to increase their spending and earn rewards based on their debit card usage. Numerous cashback offers and point-based rewards as per the bank and institutional policies are earned.
Conclusion
The savings bank account empowers women to handle their finances and investments without any dependency on their spouses or family members. Moreover, the perks and benefits offered by government-backed schemes can enable women to take full advantage hassle-free. Every woman saving small amounts in cash for household and monthly expenses, deserves a suitable savings account for interest earnings and financial security.