The stepping stone of investment in India in many cases is the savings accounts. Sometimes a saving account is all that what a person has in a bank as monetary worth. But gone are the days when all that one got out of a bank was only for the safe deposit for one’s money and had to wait in endless queues for paperwork. The era of swanky world-class banking has been introduced in to India and it’s not just the ‘Citibanks’ and ‘HSBCs’ of the world that have made an impeccable impact. What is really interesting is the fact that public sector banks like the State Bank of India and Punjab National Bank (PNB) are also offering similar world-class services, at lower added cost. Banks in the Indian banking system can be studied under three heads like public banks, private Indian banks and the multinationals. Though all banks provide a flat interest rate of 3.5% per annum, when you scan the wide cross-section, you find significant differences. Given the extent of cut throat competition in the banking sector, standing out is not a luxury for many. Just look at the example. One typical private Indian bank asking its customers to maintain an average quarterly balance (AQB) of around Rs 5,000, while a nationalised bank such as PNB ask for only Rs 1,000. The multinationals, however, require AQBs to the extent of Rs 25,000. Features like online-banking and mobile-banking have integral parts of the quintessential savings account, fixed account and current account with almost everyone offering them for a negligible fee for this added advantage. With the sole aim of encouraging small savings, the Government of India proposed to enlarge the scope of eligible saving instruments by inserting two new clauses in sub section (2) of section 80C of Indian Income Tax act. The five year time deposit(fixed account) in an account under Post Office Time Deposit Rules, 1981, and the deposit in an account under the senior Citizens Savings Scheme Rules, 2004 are also subject to tax deduction.