Should women go for women’s savings accounts that come with the added benefit of personal accident insurance coverage?

For women who wish to take the first step in managing their own finances, banks provide women savings accounts that come with extra bonuses above standard accounts. Women's savings accounts typically provide features like accidental death insurance, accidental hospitalisation cover, preferential loan rates, high daily cash withdrawal limits, yearly maintenance charge waivers, low opening deposits, free chequebooks, low average monthly balances, and much more. Yet, there are a number of drawbacks to women's savings account as well. Therefore, let's educate women on whether they should open a women's savings account or a standard one on International Women's Day.

Mr. Rakesh Goyal Director, Probus Insurance Broker

1. Should women go for women's savings accounts that come with the added benefit of personal accident insurance coverage?

Women savings accounts with added benefits such as personal accident insurance coverage can be a good option for women in India. Personal accident insurance cover can provide financial support to women in case of accidental injuries, disabilities, or death due to an accident. This can be especially beneficial for women who are the primary earners or caregivers in their families.

However, before opening such an account, it is important to carefully review the terms and conditions of the account, including the insurance policy. You should consider factors such as the coverage amount, the premium amount, the exclusions and limitations, and the claim settlement process.

You should compare the benefits and costs of different women's savings accounts and insurance policies offered by various banks in India. This can help you choose an account that aligns with your financial objectives.

2. What are the pros and cons of women's savings accounts over regular savings accounts?

Women's savings accounts with added benefits of personal accident insurance cover can have several pros & cons compared to regular savings accounts.

Following are the pros:

The most significant advantage of such savings accounts with personal accident insurance cover is the insurance benefit, which can provide financial support in case of an accident. This benefit can give women a sense of security and protection for themselves and their families.

Additional benefits include women's savings accounts may offer other benefits such as cashback, discounts on purchases, or higher interest rates, which can be useful for women who want to maximize their savings.

Under specialized services, certain banks may offer specialized services for women customers, such as financial planning or discounts on loans. These services can be tailored to meet the unique financial needs of women.

Following are the cons:

Limited options: Women savings accounts with added benefits may have limited options compared to regular savings accounts. For example, the insurance coverage may have limitations or may not cover certain types of accidents or disabilities.

Higher fees: Some women savings accounts may charge higher fees or require a higher minimum balance compared to regular savings accounts. This can eat into the potential savings or earnings from the account.

Availability: Women savings accounts may not be available at all banks, which can limit the options for women who want to open such accounts.

Overall, whether a women's savings account with added benefits is better than a regular savings account depends on individual circumstances, preferences, and financial goals. It's essential to compare the features and costs of different accounts and choose the one that best fits your needs.

Abhishek Banerjee, Founder & CEO, Lotusdew Wealth and Investment Advisors

Women who wish to save money and have protection in the event of an accident may benefit from women's savings accounts that include personal accident insurance coverage. Prior to determining whether to open a women-specific savings account, it is essential to weigh the potential pros and cons.

Personal accident insurance coverage is one of the most important advantages of women's savings accounts. This policy can provide monetary protection in the event of accidental death or disability. Moreover, certain women's savings accounts may include women-specific perks, such as cashback on purchases, discounts on healthcare services, and access to women-specific events or campaigns. Also, certain women's savings accounts may offer higher interest rates than traditional savings accounts, making them a potentially advantageous choice for people who wish to save more money.

Yet, there are potential disadvantages to consider. Certain women's savings accounts may contain withdrawal limitations or demand a minimum balance to retain the account, limiting access to the funds. In addition, some women's savings accounts may assess fees for services including ATM withdrawals, online transactions, and account maintenance. Finally, women may only have access to savings accounts at select banks or financial institutions, limiting their options.

Thus, women's savings accounts with personal accident insurance can be a suitable solution for women who wish to save money and have financial security. Nonetheless, it is essential to thoroughly analyse the account's terms and conditions to ensure that it suits your financial goals and needs. In addition, it is always a good idea to compare women's savings accounts with standard savings account options to see which one meets your needs the best.

Gautam Kalia, SVP and Head Super Investor at Sharekhan by BNP Paribas

Various banks are offering special savings accounts for women which comes with several benefits and offers especially designed for women. These accounts also comes with added benefits of personal accident insurance cover and the insurance cover amount varies from bank to bank. The insurance cover offered by these accounts are not so high. Investor should not only depend on this insurance cover and should have separate adequate insurance cover.

Pros:-

- Slightly higher interest rate than regular saving accounts

- Insurance coverage such as personal accident insurance, health insurance etc. the coverage amount varies from bank to bank

- Preferential loan rates

- Lower average monthly balance compared to regular saving account

Cons:-

- Low interest rate as compared to other fixed income product.

Stuti Karan Bedi, Director of JMD Group

A Women's Savings Account is tailored to empower more women to gain financial independence, providing several key benefits. Mrs. Stuti Karan Bedi, Director of the JMD Group, shared insights on the drop, According to her Women today have come a long way and are smashing barriers in all areas of life. This is especially true in India, where more and more women are becoming financially independent. 

The world has acknowledged the indispensable role of women in creating nations, so it's our obligation to empower them and provide the necessary infrastructure that will help them to flourish and progress. Additionally, attaining financial support is a necessity for any startup, and it might entail borrowing money, acquiring grants, or receiving investments from acquaintances, family or financiers. In order to help women gain true financial independence, banks have created a great financial product - Women's Savings Accounts. This can really aid them in attaining the financial freedom they deserve.

Mrs. Bedi is a dedicated and strong personality who has devoted over ten years to JMD Group. Her success is a testament to the changing landscape of the male-dominated world, where women are now making significant strides. Mrs. Bedi has demonstrated that women can balance work and family. She is also a member of YFLO and is proud of her involvement in EO Gurgaon. She is a strong advocate for youth education and has financed the education of several children.

Ashish Misra, Chief Operating Officer – Retail Banking at Fincare SFB

Women's savings accounts that come with personal accident insurance cover offer additional financial security. The pros of such accounts include exclusive benefits, but the cons may include limitations on maximum deposit amounts, restricted withdrawal options, and eligibility criteria. Regular savings accounts may offer more flexibility and fewer restrictions but may not include exclusive benefits. It is important to compare the features and benefits of both types of accounts to determine which is best suited to individual financial goals and circumstances.

Neha Juneja, CEO, IndiaP2P.com

Many banks have created special savings accounts schemes for women clients, these are driven with the intent of marketing better to women as opposed to a push from regulators or the government. These accounts come with added benefits over regular bank accounts that vary widely from bank to bank. Some banks may offer at-home services while others may offer added insurance cover.

What is important is to note that like most premium banking services, these accounts also demand certain minimum balances which your regular savings or salary account may not. Hence, while the benefits may seem attractive, these account types may not be suitable for all women.

Shavir Bansal aka BeKifaayati

Most woman-centred savings accounts come with a minimum balance requirements similar to that regular savings accounts. If you’re specifically looking to open a Zero Balance Account - then such an Account may not make sense for you. However, most woman-centred Savings accounts come with additional benefits like - additional Insurance Cover, Unlimited free ATM withdrawals, free debit cards, etc. If these additional benefits make sense to you (vis a vis the cost), then there’s absolutely no harm in considering such an account. But before opening such an account, it is important to note whether these benefits are being offered on a Savings Account or with the Debit/ Credit Card offered with the Account.

Lovaii Navlakhi, Board Member- ARIA (Association of Registered Investment Advisers)

Women’s accounts include benefits such as personal accident insurance, discounts on locker rent, lower interest rates on loans, and specialised home banking services such as cash pick up and cash delivery in select cities. ATM withdrawals are free and unlimited. Before opening an account, it is critical to understand how these features will benefit you. Some may be unlikely to benefit from these, such as having adequate personal accident insurance or not having a requirement for a locker/loan. In such cases, one need not open a separate women’s account.

There are some caveats, that are only available when a debit card is used. One should know the terms and conditions before opting for one. Furthermore, it might not be a good idea for women to open another account with zero balance if they already have one. So based on case to case basis, it’s important to consider features, how they benefit the account holder, and

then choose one. Before opening this account, one should consider whether they require these benefits or not. Second, in most banks, the minimum balance for these accounts would be higher. That should be investigated as well. Existing accounts cannot be converted to female savings accounts.

Himani Chaudhary - Finfluencer

As a woman myself, I can attest to the benefits that a women's savings account can offer. It can have low average balance, merchant discounts, cashbacks, accident insurance cover, and unlimited cash withdrawals from ATMs, it's no wonder that these accounts are gaining popularity.

However, it's important to do your research and make sure that the rewards offered by the account are worth it. Check which merchants are on board to offer the discounts and cashbacks, and evaluate if you can utilise these benefits to the maximum. If women are working and have a salary account, they may already have access to a zero minimum balance and a free debit card. To further reap the benefits, they can consider opting for a specialised credit card instead.

Of course, the additional benefits offered by these types of accounts can vary from bank to bank. So, it's essential to check and compare the offerings before deciding to switch to a specialised women's savings account.