← GlossaryBanking
Savings Account
A savings account holds money you may need at any moment, paying a modest interest rate, often 2.5% to 4% at large banks. It is linked to a debit card, UPI and net banking.
Why It Matters
A savings account is for liquidity, not growth. Money parked there for years quietly loses to inflation.
In India
Under India’s Jan Dhan programme, over 50 crore basic savings accounts have been opened since 2014, many for people who had never had a bank account.