Imagine you are thinking about your financial future. Whether you are a teenager just starting to earn your first
allowance, a young adult managing your first job or a retiree looking to secure your savings, opening a Savings
Account is an important step. Each age group has different needs and goals, so it is essential to consider what
matters most for you at this stage of life. Let's discuss the perfect age for a bank account in detail.
How old do you need to be to open a Savings Account?
The good news is that a Savings Account has no minimum or maximum age limit. It can be opened by anyone, from a
newborn to a senior citizen. Generally, banks offer different types of Savings Accounts for different age groups. A
broad overview is as follows -
1. Infant: As a parent, you can open a Savings Account for your newborn baby to start saving money
separately to fund their education or marriage. These accounts are under guardian supervision and can be operated by
your children independently once they turn 18 years.
2. Young child: Many banks offer a Savings Account for children aged 10 years and below. They have
a smaller limit on ATM withdrawals and card transactions. For instance, Axis Bank's Future Star
Kids Account offers many features, such as a free ATM card with a personalised image of your child on the
card.
3. Teenager: Opening a Savings Account for your teenager is a great way to introduce them to
financial responsibility and help them start managing their money responsibly.
4. Young adult: This is the life stage when individuals begin their professional careers. If you
join a company, you will have a Salary Account opened. If you are self-employed, you must open a Savings Account to separate your savings from your
business transactions. Savings Accounts are commonly used at this age for saving funds for various purposes,
including leisure, marriage, emergencies and retirement.
5. Middle-aged: Most people in this age group are well-settled in their careers and busy managing
their finances. Having a Savings Account will make your life easier with the use of Debit Cards, NetBanking, and mobile app services.
6. Senior citizen: During retirement years, a Savings Account becomes particularly useful. Setting
aside money for medications, daily expenses and unexpected future costs becomes more crucial than ever. Banks offer
special benefits to senior citizens, such as doorstep banking, higher interest rates, and preferential banking
services.
Why open a Savings Account?
1. Keep funds secure A Savings Account helps you keep your funds safe and accessible. For example,
if you are saving for a down payment on a house, you can deposit your money into a Savings Account. This way, your
money is not only secure but also earning interest, helping you reach your goal faster. Unlike investing in stocks,
which can be risky, a Savings Account offers a low-risk way to grow your money.
2. Deposit options Savings Accounts offer various deposit options to make managing your money
convenient. You can deposit funds through direct deposit, mobile check deposit or by visiting a bank branch. For
example, when you get your salary, you can arrange a direct deposit to move part of your income into your Savings
Account. This ensures that you consistently save money without having to remember to make manual deposits.
3. Debit Card Many Savings Accounts come with a linked Debit Card, providing easy access to your
funds. For example, if you need to make a purchase or withdraw cash, you can use your Debit Card at ATMs or
point-of-sale terminals. This option lets you control your finances without the risk of holding too much cash.
Additionally, some Debit Cards offer rewards or cashback on purchases, adding extra value to your savings.
4. Fund transfer Transferring funds between accounts is straightforward with a Savings Account. You
can use electronic funds transfers (EFTs) to move money between your Savings and Current Accounts or to pay bills.
For example, if you need to cover an unexpected expense, you can quickly transfer money from your Savings to your
Current Account using your bank’s online or mobile banking services. This flexibility ensures that your money is
always accessible when you need it.
5. Insurance Savings Accounts in India are protected by Deposit Insurance and Credit Guarantee Corporation (DICGC), which operates under the Reserve Bank of India. This scheme insures deposits up to ₹5 lakh per depositor for each bank, offering a shield in case the bank encounters financial trouble or bankruptcy. This protection ensures your savings are safe, giving you confidence and financial security.
Also Read: How to open a bank account for a minor?
Conclusion
While a lot of people believe the best time to open a Savings Account is when you get a job and earn money, however,
there is no ideal age to open a Savings Account — you can open one at any point in your life, even for your child on
the day they’re born. You can open an Axis Bank Digital Savings Account online instantly and enjoy a wide range of benefits, such
as cashback offers on your Debit Card, and insurance coverage.
Disclaimer: This article is for information purpose only. The views expressed in this article
are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd.
and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader
for taking any financial decisions based on the contents and information. Please consult your financial advisor
before making any financial decision.
