Ladies, here are 5 reasons you should go for a customised bank account

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If you have been ignoring those calls for the woman special bank accounts, here's why you should consider one NOW.

With a tangible increase in the number of educated women, Indian households are witnessing a new financial set up. While traditionally, the purse strings of the house were very much a man's domain, double-income families are making it possible for women to have an equal say in household finances.

Urban women are now earning as much as their partners and are equally sharing the financial burden. They are also now active participants in savings, investments and expenditures.

Owing to this trend, many banking organisations are changing their strategy to cater to this growing section of educated and high income group of women. In fact, most of them are even designing accounts specially for them. But if you already have a bank account, should you still opt for a customised bank account for women? Or should you be vary of such marketing strategies?

The biggest question remains, what are the benefits of opting for a customised bank account for women?

Women bank accounts in India

There are many options for customised women bank accounts. Most of them offer special investment and interest options for women and some even to children.

  • Kotak Silk Account for Women
  • ICICI Bank Zero Balance Savings Account
  • HDFC Bank Women's Savings Account
  • IDBI Bank SuperShakti (Women’s) Account
  • Axis Bank Women's Savings Account
  • YES FIRST for Women
  • State Bank of Travancore's Pratibha Savings Account
  • Corporation Bank's Corp Mahila Power

 Advantages of women bank accounts in India

  • It's okay to maintain minimum balance in the account: Banks are wooing women with savings account that can be opened with low balance. For instance,  State Bank of Travancore's Pratibha Savings Account allows women to open an account at a minimum balance of Rs 250. For that matter, ICICI Bank has gone a step ahead and allows women to open a savings account at zero balance.  This type of account is especially beneficial, if you have not been able to maintain constant amount in your account.
  • You can also open a child's account: Another feature that many banks are offering includes opening of a children's account with zero balance. Take for instance, Kotak Bank's Silk Account. It offers a Non-Maintenance Charge (NMC) Junior account basis that is linked to an RD (recurring deposit) or Mutual Funds- Systematic Investment Plan (MF-SIP) of Rs 2,000 monthly installment. You can do this for up to 36 months. Not only will this help secure a safe financial future for your kid, but also inculcate the habit of savings.
  • You can avail shopping discounts: Most women bank accounts also offer lucrative deals on shopping and even reward points. For instance, SBI offers reward points on purchases of lifestyle items and Kotak Mahindra offers a cashback on movie tickets purchased with debit cards. In addition, women also get cashback or reward points on purchase of jewellery, health and beauty products, and apparels.
  • You can isolate expenses and manage finances: You also have the option of isolating your expense account. So a woman bank account will give you the freedom to avail cashbacks and reward points on purchases, even if you do not have a fixed income. It can also function as a fallback independent account that gives you interest on your savings.
  • You can avail loans at a very low interest rate: Another interesting feature of woman bank account is that it allows you to avail loans on low interest rates. For instance, Corporation Banks, Corp Mahila Power promises loan up to Rs 1 lakh when needed most, and extends a Personal Accident Cover of Rs 1 lakh per account holder until the account is alive.
  • You can insure your jewellery and avail add-on facilities: Some banks are also offering insurance on jewellery, advisory services and even rewards points on debit cards and ATM cards. Banks are also offering special discounts for women and luring them into opening add-on benefit savings accounts. For instance, Kotak Preferred term life insurance, offers a Rs 50 lakh cover for 25 years to a 30-year-old female. This is for an annual premium of Rs 5,984.

Though most of the schemes and offers seem attractive, one must go ahead with the full knowledge of their financial position and basic requirement. Taking a plunge to in for a customised woman bank account is a good option, however, make sure you weigh the pros and cons.

(Image courtesy: Livemint)

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Written by

Deepshikha Punj