What's special about a women's account?

Traditionally, it was the men who controlled the purse strings; a scenario that is changing now. With two-income families fast becoming the norm, women are increasingly having a say in the family's spending, saving and investment decisions.

This fact is not lost on banks, who are offering a variety of services tailored for women's needs -- like loans and bank accounts.

Some banks are offering accounts especially for women. What are the benefits of these accounts? Is opening such an account worth your while?

Most of these are being offered by private banks, and you get the usual benefits of such accounts, like a countrywide network of ATMs, Internet banking facilities, online bill payment, debit cards and the like. In addition, they offer a few other facilities meant for women.

Whether they're useful or not depends on your needs. We'll give you a few examples and let you decide.

• Don't want to step into your bank?

Insurance cover

You need not swallow this bait if you are already well insured.

For instance, UTI Bank offers a Smart Privilege account, which is open to all women over 18 years of age. Women who open such an account automatically get an insurance cover for women-related critical illnesses.

Under the policy, working women get Rs 25,000 if they lose their jobs within three months of the date of diagnosis of the illness. It also includes a children's education bonus of Rs 25,000.

Citibank Women's account also a provides critical illness insurance cover for Rs 50,000 (for those women who are less than 55 years old).

Credit/ debit cards

The UTI Bank Smart Privilege account comes with a specially designed international debit card, through which account-holders can avail of discounts on products from LG, Lakme Beauty Salon, Pierre Cardin, Domino's, etc.

The card also offers a personal accident insurance cover up to Rs 2,00,000.

The Citibank Women's Account comes with a photo debit card that enables you to avail of discounts at department stores, restaurants, jewellery showrooms, etc.

Besides, you also can avail of other debit card options like IndianOil Citibank, Citibank Grocery, Shoppers' Stop and Family ATM/ Debit Card and get additional benefits on it like reward points for shopping and special discounts.

Children's account

Another feature of the Smart Privilege account is that you can open a children's account with zero balance.

You can leave standing instructions with the bank to transfer a fixed amount from your account to your child's account. The zero balance children's account allows minors below the age of 12 to get an ATM card, while those above 12 get a debit card. This may be a good way of inculcating the banking habit in your children.

• How to be safe when banking online

Questions to ask before you sign up for a women's account

1. Do you get a free insurance cover? Do you have to pay a nominal charge for the cover? If yes, how much is it?
For instance, ICICI Bank offers a personal accident insurance policy for an annual premium amount of Rs 60. This will insure your child/ family for an amount of Rs 2,00,000 (in case of surface accidents) or Rs 4,00,000 (in case of air accidents).

2. Do you have to maintain a minimum balance in your savings account? Is the amount too high? Is it higher than their normal savings account?
For instance, urban women have to maintain a quarterly average balance of Rs 10,000 in their Smart Privilege Account while it is just Rs 5,000 for a normal account.

3. Do you get a free credit or debit card with it? Is there any annual fee on it?
Shakti, the women's account from ABN Amro, offers a free credit card only for a year. Similarly with Citibank Women's Account card for which you have to fork out Rs 150 a year for it.

4. What benefits do you get on these cards? Do you shop for the products on which they offer discounts?

5. Is any free investment advice offered? Are there any other investment benefits?
For instance, ICICI Bank* offers a recurring deposit on its Women's account.

6. Are any loans (car loan, home loan, home renovation loan, personal loan) offered at a slightly discounted rate of interest?

7. Can you open a zero balance account for your child?
ICICI Bank* allows you to open a 'Young star' account but with a minimum balance of Rs 500.

8. Is Internet banking, mobile banking and online bill payment offered with the account?

If you find it working to advantage go for it. If not, continue banking wherever you are.

* The ICICI Bank account is only valid in Andhra Pradesh.