Women Savings Account: Do They Make Sense For You

Many banks offer special savings accounts for women. These accounts come with additional benefits that make them more attractive and rewarding to women. The benefits can be briefly split into three categories: specialized financial products, preferential rates, and debit and credit card offers. 

Attractive Benefits

“Women account holders might enjoy lower interest rates on loans or maybe be linked to other financial products tailored for women, such as gold loans, two-wheeler loans, or small business loans with preferential terms. Certain women’s accounts may offer advantages in investment services, like lower fees on mutual funds or demat accounts,” says Adhil Shetty, CEO, BankBazaar, a fintech company. 

Women's savings accounts come with features like accidental insurance benefits, which cover a lump sum benefit in case of death, and hospitalization benefits in case of injury. They may be available for all savings accounts, but women’s accounts may have a higher sum insured. 

“Women love shopping and hence some banks offer double reward points on purchases made via debit cards. They also extend shopping limits if the purchase is made online,” says Madhupam Krishna, Securities and Exchange Board of India (Sebi) registered investment advisor (RIA) and chief planner, WealthWisher Financial Planner and Advisors.

Not only the account holder, but the banks also offer discounted accounts for kids and aged parents linked to these women's savings accounts. Most of them include social accounts like Sukanya Samriddi Yojana (SSY) for girl children and NPS for herself.

Women's savings accounts thus give women control over their finances, allowing them to contribute to family well-being, pursue education, and build a secure future.

Should You Opt For One 

“If selected carefully, the women’s savings account can make life simpler with discounts, cashback, preferential loan interest rates, and more,” says Shetty. 

The truth is, that most additional services are not known or not used by women depositors.

“However, some "women's" accounts might provide a small initial bonus or discounts on financial products. However, these offers tend to be temporary and may be found through other promotions as well,” says Krishna. 

“So, don't be swayed by the discounts and freebies. Prioritize your individual financial needs and choose the best savings account for you, regardless of its marketing strategy,” says Krishna. 

Here’s a table to illustrate the details of women's savings accounts of different banks and the features, and benefits associated with those.

Source: Bank websites