1. Build your Credit Score
2. Reduce your Current Borrowing / EMI Costs
It is hard to not notice that the women's literacy index has been growing exponentially, and more women have been joining the workforce and becoming financially independent in India. Homemakers are becoming increasingly dominant in personal finance management, which is not surprising given the fact that women have always been more efficient in saving money diligently. Despite the gender pay gap which is still prevalent, things have definitely improved.
The cherry on the cake is that now companies and banks are shifting their focus towards women as a target group while launching new schemes and financial products, which only empowers them more. Women's savings account is one of the examples of such financial products. These accounts come with various benefits such as cashback offers, less processing fees on loans, discount vouchers, etc.
Banks like HDFC, ICICI, IDBI, and Axis provide savings accounts that are tailored to suit the needs of a woman and are popular among the modern womenfolk for their lucrative offerings. However, before you proceed to sign up for any of the women's savings accounts, let's first discuss in detail the many reasons to do so.
In banks like ICICI, the number of transactions remains limited to five in ICICI Bank ATMs, and three in Non-ICICI Bank ATM in a regular savings account, whereas in women's savings account, there is free unlimited access across different ATMs in India.
A women’s savings account in ICICI bank can earn you a cashback of Rs.750/month on dining, jewelry, and entertainment. HDFC Bank also offers a cashback of Re.1 every Rs.200 spent using EasyShop Woman's Advantage Debit Card, along with some exclusive healthcare benefits. Such lucrative offers do not apply to a regular savings account. RBL Bank provides cash vouchers worth Rs.2500 and more on using the debit card within 30 days of issuance.
Through ICICI women's savings account, you can enjoy a triple advantage - 50% waiver on processing fees of any new home loan, top-up of an existing home loan, and zero charges on balance transfers. There are various exclusive offers on loans for women's savings accounts provided by Axis Bank as well, such as a 50% discount on processing fees, 90% financing of the on-road price in case of auto loans, and 2% lower interest rate on two-wheeler loans. Offers like these are not available in a regular savings account.
HDFC Bank provides accidental hospitalization cover of Rs.1 lakh/year and accidental death cover of Rs.10 lakh/year with its women's savings account. To be eligible to apply for an insurance claim, the primary account holder should make at least one purchase through the debit card three months immediately before the date of the accident. Bank of India also provides a free group personal accident cover of Rs.5 lakh in women's savings account. Also, you can avail of a personal accident cover of up to Rs.2 lakhs if you swipe your Axis Bank debit card at least once every six months.
ICICI Bank provides a 50% discount, IndusInd Bank offers 25%, and Kotak Mahindra Bank provides a 35% discount on first-year locker rentals. These offers are exclusively available for women's savings account.
This facility allows you to enjoy the flexibility of a savings account and the higher interest rate made available on fixed deposits at the same time. Under this facility, you provide standing instructions to the bank to create fixed deposits once your account balance exceeds a predetermined threshold. Banks like Axis, HDFC, IDBI, and ICICI provide this complimentary facility with women's savings accounts.
RBL Bank offers discounts on diagnostics and health check-ups with the Woman's First Savings Account. It also provides medical concierge services available at hand.
Some of the banks offer accounts in tie-up with different companies, such as health & lifestyle, cab service, e-commerce, entertainment, travel, and financial management companies, to provide additional perks. Some banks also offer airport lounge access with their debit cards for women’s savings accounts. With all these perks on offer, make sure that you carefully choose the card that can provide you maximum benefits.
Although the average minimum balance requirements are very often the same in a regular savings account and women's savings account, the latter is more beneficial than the former due to its lucrative offers, discounts, extensive insurance cover, and cash backs.
It is advisable to compare the cost and benefits of different savings accounts and finalize the one that perfectly suits your requirements. Happy Savings!