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.

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.

A big difference between a savings account vs a current account is how often you access your money. The idea of a savings account is that it's a pot of money you leave alone, gradually building up over time. You'll also earn interest at an agreed rate.

A savings account is a type of bank account designed for saving money that you don't plan to spend right away. Like a checking account, you can make withdrawals and access the money as needed. But with savings accounts, the bank pays you compounding interest just for keeping funds in your account.

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.

A basic bank account is a banking option for those who are facing financial difficulty or have a poor credit history, which means they may not be eligible to open a standard current account.

A savings account is most suitable for people who are salaried employees or have a monthly income, whereas, Current Accounts work best for traders and entrepreneurs who need to access their accounts frequently. Savings accounts earn interest at a rate of around 4%, while there is no such earning from a Current Account.

A current account is usually a better choice for the everyday management of money, and for transactions such as withdrawing cash and paying your bills. A savings account, as the name implies, makes an ideal home for your spare cash and lets you earn interest on it.

Current and savings accounts are made for different things, and they offer different benefits. Current accounts are designed for routine transactions of businesses and companies, whereas savings accounts are for people who desire to save. Interest rates in Savings Accounts are higher than those in current accounts.

What is the difference between a basic savings account and a time deposit? ›

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.

Banks typically have three kinds of savings accounts: Regular savings account: earns interest and offers quick access to funds. Money market account: earns interest and may provide check-writing privileges and ATM access.

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.

Conversion of Small account to regular Savings Bank account or BSBD account (at the option of the customer) would be done by the home branch manually on full compliance with KYC requirement. After such conversion, the same account number will continue.