Special Savings account

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Another type of savings account offered by Banks is a special kind of savings account which provides a much higher interest than savings account but has few clauses attached to it wherein funds are not accessible as easily as they are accessible in a savings account.

The basic idea of such accounts are that they are operated using Internet Banking or Mobile Banking and teller transactions or basic branch transactions are restricted. Another restriction that is levied for such accounts is the number of transactions that a customer can perform on this account in a month to earn the high rate of interest. Once the customer exceeds the number of transactions, interest rate will drastically drop and reaches next to zero wherein customer earn nothing.

A special savings account is provided with a debit card but no cheque book as money can be withdrawn from such accounts using ATM. Again the restriction on debit transactions apply, for eg; if the number of withdrawals allowed by the Bank are 3 and the customer withdraws from the ATM 4 times, the interest rate drops.

Internet Banking services and mobile banking services are offered to such accounts and the customer can perform all the required banking transactions using these services. If a customer wants to withdraw cash from such accounts using teller counters or branches, they can do so at a charge and the Bank may waive such charges if the amount to be withdrawn is higher than the daily withdrawal limit of a Debit card.

Before i proceed further, let me tell you that a debit card or a credit card has a withdrawal limit again to protect the customers interest that incase if the debit card and pin falls in wrong hands, customers loss will be minimized as the person will not be able to withdraw beyond that amount in one day, further they are transaction limits and ATM limits also in place for security purposes.

So, if the amount that the customer wishes to withdraw is more than the amount he/she can withdraw using their Debit Cards, the Bank may waive the applicable charges based on customer profile and the need of the customer.

No charges are levied by the Bank for non maintenance of minimum balance in such accounts as interest is paid on the amount kept in the account by the customer which again has a maximum cap or amount on which interest is paid. If a customer keeps an amount higher than the amount capped by the Bank on which it will pay interest, Bank will not pay any interest on that amount.

Every Bank has such zero balance savings accounts with different names, ask your Banker for such account and enjoy a higher rate of interest on your money with the features of a savings account.