Vanilla no more: Nine freebies you can get with savings accounts

The good old savings account is no more a vanilla instrument that is used to be. Nowadays, a simple savings account can give you multiple attractive features, thanks to the increasing competition among banks to win over customers.

Let us have a look at nine special features that leading public and private banks are offering to their customers. We have considered SBI, BoB, PNB, HDFC, ICICI, Axis, IDFC First Bank, Bandhan and Kotak Mahindra Bank.

Life insurance

Almost all leading PSU and private banks offer life insurance cover including air accidents to savings account holders. Some of them charge a very nominal premium while some offer it absolutely free.

The amount varies from Rs 2 lakh to Rs 10 lakh. State Bank of India Savings Bank Account holders can get a personal accident insurance cover of Rs 4 lakh just for a nominal annual premium of Rs. 200.

PNB, Axis Bank and Bandhan Bank offer free accidental death coverage up to Rs 5 lakh. The minimum cover is of Rs 1 lakh.

On the other hand, IDFC First Bank, HDFC, Kotak Mahindra and ICICI Bank offer free air-accident cover up to Rs 10 lakh for its privileged customers free of cost.

Deposit insurance

According to Reserve Bank guidelines, all deposits with all commercial banks and cooperative banks are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme up to Rs 5 lakh.

This includes all deposits held by a person in current account, savings account, fixed deposits and so on. All public sector banks and private lenders like SBI, PNB, HDFC, ICICI, Axis, Kotak Mahindra and others are offering it to their customers.

Unlimited ATM withdrawal

Banks like IDBI, Citi, Yes, RBL, Bandhan, IDFC First are offering unlimited ATM transactions to its customers depending upon the character of the savings accounts.

But banks like SBI, PNB, BoB, Axis, HDFC, Kotak Mahindra bank are not offering unlimited ATM transactions. In these banks, the unlimited ATM transaction facility is for premium customers.

ATM limit

Generally, normal savings account customers can withdrawal Rs 10,000 from ATMs of other banks and Rs maximum 25,000 from home ATM. But premium savings account holders in ICICI, Bandhan, IDFC, AXIS Bank can withdraw cash up to Rs 1 lakh in a single day.

But public sector banks like SBI, PNB or BoB have generally fixed the ATM withdrawal limit to Rs 25,000 in a single day for all savings account customers.

This limit goes up to Rs 50,000 for premium or current account holders. It is the almost same for every public sector bank.

Airport lounge access

Banks like SBI, HDFC, ICICI Bank, Axis Bank and IDFC First offer free airport lounge access to their premium savings account holders only. This service is for selective customers, who maintain a high balance account with the bank.

The number of free lounge access varies from one and three in every quarter depending upon the bank. Besides, some banks such as HDFC Bank, Axis, ICICI, Citi and IndusInd also offer attractive rates on goods purchased from airport duty free shops.

Free transactions

A savings account holder can send and receive payments free of cost and it serves as a base for all transactions. Financial transactions can also be carried out swiftly by using NEFT/RTGS/IMPS facilities.

This facility is the same for all savings account holders of PSU and private banks. But a few banks such as HDFC, Axis, IDFC and ICICI Bank offer free IMPS transactions to the customers whose average monthly balance is maintained at or above Rs 1 lakh.

Passbook, cheque facility

Almost all banks offer this facility to their savings account holder. When you open a savings account, you get a passbook and cheque book consisting of 10/25 leaves carrying your account details. While the passbook lists your transactions, you can withdraw cash using the cheque leaves.

You can also issue a cheque to someone. Banks generally charge for cheque books beyond the first one with 10/25 leaves every year. But ‘privileged’ or premium customers of HDFC, Kotak Mahindra, ICICI, Axis Bank are entitled to free cheque book with 75/100 leaves in a year.

Debit card 

Most savings accounts offer debit card facility, which is the most common way of withdrawing money from a savings account nowadays.

Banks usually insure a debit card user with a death coverage. The holder can also get a life insurance up to Rs 20 lakh depending upon the facility of the card.

A normal customer of SBI, PNB, BoB, ICICI, HDFC, Axis, BoB, Kotak Mahindra Bank is eligible for a minimum accidental death benefit of Rs 1 lakh if he/she holds a credit card.

This amount goes up to Rs 20 lakh according to the nature of the account.

Mainly private banks offer the coverage of Rs 20 lakh. Only SBI offers this much accidental benefit to its premium customers.

Additional free benefits

Many banks offer additional benefits along with their saving account. IndusInd, Citi, ICICI, HDFC, Axis and some other banks allow a customer to open a free demat account along with a premium savings account. A demat account is needed for trading in stock markets.

Some banks may offer a free-locker facility or locker facility with minimum charge when you open a savings account with them. SBI, PNB and BoB offer a discount up to 35% of the locker charges for the premium customers.

Private banks such as HDFC, ICICI, IDFC, Kotak Mahindra and Axis offer 50% to 100% discount on locker charges for the first year for super premium customers.

Free locker insurance cover is also offered by some leading private banks.