A savings account is a bank account where you deposit money to earn interest. It offers a secure method for saving cash that you don’t require right away. Different banks provide varying interest rates and have distinct eligibility criteria for account opening. Although savings accounts typically offer lower interest rates than deposit accounts or mutual funds, they present a low-risk investment option with the flexibility to withdraw funds at any time, all while earning a decent amount of profit.
In Pakistan, savings accounts have become vital for individuals wrestling with severe inflation and related economic challenges. This blog is a must-read if you consider investing your money in a savings account. Its goal is to offer detailed insights into different savings accounts, including their eligibility requirements and advantages.
Types of Savings Accounts
Numerous types of savings accounts exist. When choosing one, consider the interest rate, how easy it is to access your money, and any fees or penalties.
Regular Savings Accounts
A regular savings account is a specific savings account that mandates a monthly deposit of a predetermined amount. In return, it offers a higher interest rate than a standard savings account.
- Created to save a specific amount of money regularly.
- It may provide higher interest rates compared to other account types.
Easy Access Savings Accounts
This savings account lets you withdraw money at any time you need it. It is also known as an immediate-access account or a no-notice account.
- Interest is earned on the funds you put into the account.
- Offers variable interest rates.
This can be a suitable choice for short-term savings objectives.
Fixed Rate Bonds
A fixed-rate bond is a savings instrument offering a stable interest rate throughout a designated period. This interest rate remains consistent for the entire duration of the account.
- Provide a better interest rate compared to other savings accounts.
- Hold your money for a set period, usually with a guaranteed interest rate.
- The duration can range from several months to multiple years.
Notice Savings Accounts
A notice savings account is designed to require prior notification before you can withdraw funds. In return, you benefit from a higher interest rate compared to traditional savings accounts.
- Used to save for future goals, such as a home or wedding.
- You must notify your provider before withdrawing your funds.
- Can offer a higher interest rate, but you might lose some interest if you withdraw without notice.
High Interest Savings Accounts
A high-interest savings account offers a better interest rate compared to a regular savings account, allowing you to earn more from your savings’ interest.
- Feature a higher-than-average interest rate.
- You can usually withdraw or deposit funds at any time.
- Account fees may include minimum balance requirements or withdrawal charges.
Children’s Savings Accounts
A children’s or junior savings account is a safe place for children to save money and can help them learn how to manage money.
- They can help children learn how to save money.
- They can help children prepare for college.
- Help children in developing good habits of managing money.
Features of Savings Account
- Personalised account numbers for account holders.
- You can open the account with a low initial deposit.
- No limit on withdrawals and deposits.
- Profit added to the investment periodically.
- Debit and ATM cards for seamless transactions all across Pakistan.
- Free online banking services available nationwide.
- Facilitates utility bill payment.
Advantages of Savings Account
- Tempt people to save more and promote saving habits.
- Helps people to earn extra using interest.
- Enables the depositor to make payment by way of cheques and cards.
- Numerous perks and services offered by depository institutions to account holders.
Standard Chartered Bank
Standard Chartered Bank is Pakistan’s oldest and largest international bank and is renowned as the first foreign bank to obtain an Islamic Banking License. The bank serves a diverse clientele and caters to corporate, retail, and institutional banking customers. With a robust presence, it operates 40 branches across 10 major cities, ensuring comprehensive financial services and accessibility.
Savings Account Policies
Standard Chartered Bank of Pakistan offers various savings accounts, including High-Yield Savings, Bonus Saver, and Islamic Accounts.
Minimum Balance: The minimum balance for a High Yield Savings Account is PKR 500,000.
Dormant Accounts: An account is deemed dormant after a year if there has been no transaction during this period. You can submit a written request and a supporting identity document to reactivate a dormant account.
Unclaimed Accounts: If an account has been inactive for ten years, the deposit is considered unclaimed and given to the State Bank of Pakistan.
Access: Access your funds 24/7 through the SC mobile app and online banking.
Eligibility Criteria for the Savings Account
- Nationality: Pakistani
- Age: 18 years and above
Documents Required for the Savings Account
- Proof of Nationality /National ID card.
- A document confirming your residence, such as an electricity bill, water bill, or tenancy agreement in your name.
- A letter from your employer or the ward executive, along with a selfie of your face.
Special Perks
- Calculate interest using the annual interest calculator on their website.
- The high interest rate on your investment, i.e., 20.50% APR.
- The minimum initial deposit amount can be as low as Rs. 100.
- 24/7 access to the account and interest via mobile banking.
- No amount is required to keep the account activated.
Meezan Bank – Bachat Account
Pakistan’s first and largest Islamic bank, recognised as the best bank in Pakistan three times by the Pakistan Banking Awards, is dedicated to providing Shariah-compliant financial services. This bank offers a diverse array of savings accounts, i.e.:
Bachat Account: This account provides a profit rate based on the account’s balance.
Asaan Savings Accounts: The customer and the bank enter a mudarabah relationship in this account.
Roshan Digital Accounts: This account is available in savings and current accounts.
Below, we outline the fundamental criteria for opening a savings account with this institution.
Documents Required for the Savings Account
- Valid CNIC/ SNIC/ NICOP/ SNICOP for Pakistanis
- Valid Passport for foreign citizens
- Valid POC for persons of Pakistani origin
- Valid ARC for registered Aliens in Pakistan
- Valid POR Card for Afghan refugees residing in Pakistan
- Valid Form-B/ Juvenile Card for minor Pakistanis
Special Perks
- Halal monthly profit on the investment
- Free cheque book and pay orders
- Free Internet banking services
- Profit calculated daily
- Profit payment is added to the account monthly
- Profit rate of 14.04% on the payment ranging from Rs 1-499.99k
United Bank Limited (UBL)- Mahaana Amdani Savings Account
Founded in 1959, United Bank Limited ranks among Pakistan’s top banks with 1360 branches and 11 million customers nationwide. Renowned for its award-winning services, UBL is recognised as one of Pakistan’s premier savings account options.
Saving Account policies
United Bank Limited (UBL) offers various savings accounts, including the Mahana Aamdani Term Deposit and the Mahana Munafa Plan.
UBL Mahana Aamdani Term Deposit
- A term deposit account that offers high-yield profit rates.
- Designed for customers who rely on a fixed monthly income.
UBL Mahana Munafa Plan
- A consistent income strategy enabling clients to invest their savings.
- The plan doesn’t have a fixed-term holding period requirement.
- It also offers free Takaful Coverage.
Eligibility Criteria for the Savings Account
Any one of the following can take advantage of this saving program:
- Foreign Missions/Diplomats and Associations/Clubs/Trusts, etc.
- Gov’t Institutions (Federal/Provincial)
- Housewives
- Individual and Joint Accounts
- Joint Stock Company Accounts (public/private)
- Partnerships
- Salaried/ Retired Individuals / Pensioners
- Self Employed Individuals
- Small and Medium Enterprises
- Sole Proprietorships
Special Perks
- The initial deposit is as minimum as Rs. 100
- No restriction of minimum or maximum bank limit
- Tier-based account
- High return
- Unlimited withdrawals
- Profit is calculated on the monthly average amount
- Instant fund transfers nationwide
- Stop payment of cheque
- Utility bill payment
- PO/DD/CC/ RTC issuance
Bank Alfalah – Asaan Savings Account
With a network of 1,000 branches in more than 200 cities, Bank Alfalah is one of the best banks in Pakistan. It offers its clientele multiple saving options, including:
Bank Alfalah Savings Account: This account is for individuals and businesses who want to earn deposit returns.
Bank Alfalah Asaan Savings Account: This account has no minimum balance; offers free e-statements and SMS alerts.
Bank Alfalah FCY Monthly Savings Account: This account has no minimum balance requirements and offers free online banking.
Bank Alfalah Musharakah Savings Account: This account offers free banking services and takaful coverage for accidental death and permanent disability.
Bank Alfalah Asaan Pehchaan Digital Account: This account requires no minimum balance and offers free SMS alerts and e-statements.
Documents Required for the Savings Account
- CNIC
- Application form
Special Perks
- Account opening with only Rs. 100
- Free e-Statements
- Free local fund transfers to any BAFL account
- Free SMS alerts on digital transactions
- Maximum credits up to Rs. 1,000,000 per month
- Maximum debits up to Rs. 1,000,000 per month (including ATM withdrawals)
- No minimum balance requirement
- Orbit reward points
- Profit calculated on the monthly average balance
- Profit credited after 6 months.
- Utmost transactional convenience
Faysal Bank Limited – Faysal Islamic Muntazim Savings Account
Established in 1984, Faysal Bank Limited is the second largest Islamic bank in Pakistan. With 700 branches across 270 cities, the bank is committed to delivering solutions for savings and earning profit to its clientele. Faysal Bank has designed its Ismalic Muntazim Account on the ground principles of Mudarabah, ensuring shariah compliance.
Types of Accounts
Faysal Islamic Savings Account: This account is based on the Islamic concept of Mudarabah, which is a partnership between the account holder and the bank.
Mubarak Safar Saving Account: This account is Shariah-compliant and offers discounted travel packages and free Umrah packages.
Asaan Saving Account: This account can be opened with a CNIC and has no minimum balance requirement.
Amal Women Asaan Saving Account: This account has no minimum balance requirement and offers free doctor consultations, medicine delivery, and lab test booking discounts.
Life Plus Savings Account: This account has no minimum balance requirement and offers unlimited transactions.
Documentations Required for the Savings Account
- Valid Identity Document: Computerised national identity card (CNIC), overseas Pakistanis card (NICOP), Pakistan origin card (POC), alien registration card (ARC), or passport.
- Proof of Income: A recent salary slip, service card, or proof of earning.
- Proof of Business Existence: If you are self-employed, you need to provide proof of business existence.
- Birth Certificate or Student ID Card: If you are a minor, you need to provide a birth certificate or student ID card.
- Guardian’s Identity Document: If you are a minor, you need to provide the identity document of your legal guardian.
Special Perks
- No average deposit balance is required to earn profit.
- Enjoy unlimited transaction facilities.
- Profit is calculated based on the monthly average balance and disbursed semi-annually.
- Access your account online, regardless of the Faysal Bank branch.
- Manage your account round-the-clock via Faysal Bank’s Call Centre, extensive ATM network, and 1Link/MNET ATMs nationwide.
- Transfer funds instantly with ease.
- Pay your utility bills conveniently.
- Stay informed with SMS alert services.