Empowering Women Financially: A Guide to the Best Savings Accounts Tailored for Women

savings accounts

While women’s participation in the workforce is steadily rising, we still have a long way to go before achieving gender parity in salaries and financial independence. However, specialised women savings accounts that offer preferential higher interest rates can accelerate the process of building an emergency corpus.

This comprehensive guide covers women-centric savings accounts – their key features, associated benefits, smart tips to maximise savings growth, and reasons women need targeted financial empowerment. Read on to make well-informed choices!

Why Women Need Financial Empowerment

Despite notable progress, women still face socio-economic challenges that limit their economic participation, career growth and earnings potential:

  • Pay gaps: The average urban working woman still earns 20-30% less than her male counterpart in India
  • Career breaks: Motherhood responsibilities and family caregiving roles impact continuity in jobs, impeding growth
  • Limited access: About 30% of Indian adult women have independent bank accounts in their name

These limitations have a cascading effect by reducing discretionary savings and restricting access to formal credit and investment channels. This consolidates a prevalent financial dependence rather than empowering women towards financial independence.

Specialised women savings accounts from multiple banks help alleviate some of these issues through tailored products.

Standard Features of Savings Accounts Made for Women

While offerings vary slightly across banks, here are some usual features of thoughtfully designed women’s savings bank accounts:

1. Insurance Coverage

Complimentary insurance is a key feature. Bank accounts such as IDFC FIRST Bank account comes bundled with fixed personal accident coverage (up to ₹30 lakhs) and air accident coverage (₹1 crore). This risk protection is free with women’s savings bank accounts.

2. Health Benefits

Leading women’s savings accounts partner with health tech platforms. Account holders receive subscriptions to free online doctor consultations, discounts on pharmacy orders, diagnostic tests, and annual health checkups.

3. Locker Discounts

Most banks, such as IDFC FIRST Bank offer their female customers up to 50% off on annual locker rentals if they open a ladies’ savings account. This facilitates the safe storage of their valuables.

savings accounts

Key Benefits of Using Women’s Savings Accounts

Opting for thoughtfully designed savings accounts tailored for women’s usage offers these valuable advantages:

1. Safeguard Future

Higher interest earnings on savings accounts allow women to build a sizeable corpus over time, which provides financial stability and aids in safeguarding their future.

2. Risk Protection

Inbuilt accident insurance covers and shields women account holders from uncertainties. Complimentary health insurance gives risk protection against medical emergencies.

3. Tax Planning

Higher interest income up to a certain limit is tax-free under income tax laws. This allows women to efficiently plan their taxes.

4. Retirement Planning

Retirement planning becomes easier as women start saving and investing early in instruments like savings accounts, fixed deposits, etc., that build a retirement kitty.

5. Financial Awareness

Digital banking features help women track expenses, monitor savings and understand investments better. This drives higher financial awareness.

Smart Tips to Maximise Savings

Adopt these actionable tips to grow your money faster using women’s savings accounts as your primary bank account:

1. Open Early

Consider opening a dedicated best bank for women saving accounts before major personal milestones like marriage or childbirth. This allows you to start benefiting from higher returns from the initial days.

2. Automate Transfers

Set up monthly standing instructions to automatically transfer a portion of your surplus household income or savings into these remarkable women’s accounts. Automation ensures discipline.

3. Invest More

You can use accounts to invest lumpsum funds in fixed deposits, recurring deposits, or mutual funds. FDs often allow higher rates for women.

Conclusion

Stay consistent and leverage digital tools to maximise savings returns tailor-made for women.

In summary, best savings accounts for women offer a supportive environment through tailor-made products that empower women financially. Open one today to take charge of your money.

digital asset Previous post 6 emerging benchmarks in digital asset valuation
Next post How Outrunner Brushless DC Motors Are Transforming the Electric Vehicle Industry