Types Of Bank Deposit Accounts In India: The Banks in India have four various types of Deposit Accounts. They are Current Account, Savings Bank Account, Recurring Account and Fixed Deposit Account. Due to the increasing competition some of the banks in India have introduced new products recently that combines the features of two or more deposit accounts. These accounts are called by various names in various banks for example Smart Deposits, 2 in 1 Deposits , Automatic Sweep Deposits , Power Saving Deposits etc.,
The complete details of various accounts is given under for the reference of persons.
Current Account : The Current Accounts are useful for Businessman and never used for the investment or savings purposes. There is no limit for the number of transitions in this account in a day and these are liquid deposits. Most of the Current accounts are used by Business People and are opened on the names of their Firms/ Companies. The account holder can deposit all types of checks and drafts as the check book facility is provided. The interest paid by banks on these accounts is Nil.
Features of the Current Account: · The main purpose of using this account is to enable the business man to conduct their business transactions in a proper way.
· No restriction for the number of times deposits in Cash or checks can be made through this account.
· These accounts do not have any maturity because the accounts are on continuous basis.
· Normally the banks do not have any interested on the current accounts.
Savings Bank Account: The savings bank accounts are the most popular deposit accounts and are flexible also. These accounts provides check book facility for the account holders. It has limited number of Withdrawals in a period of time , will be decided by the bank. It can be opened by any individual. As per recent news, under guidelines of RBI banks are also required to open no frills account i.e , Zero balance account . The public sector banks are paying only 4% of rate of interest on these accounts. Apart from this private banks like Yes bank , Kotak Bank are paying around 6% and 7% interest on these accounts.
Recurring Deposit Accounts: These are also called as RD Accounts . The special kind of Term Deposits can be done through Recurring Deposit account. These are useful to save a small amount of money rather than lump sum amounts. The interest can be calculated based on the term and maturity date. These accounts can be useful for your child’s education or your daughters marriage or to buy a car without loans.
The candidates / person have to deposit a fixed amount every month. The persons can also allowed to deposit higher amounts of installments. Normally these are allowed for the maturity ranges from six months to 120 months. A passbook will be issued usually for the entries made by the person and the interest earned is also shown on the book .
Fixed Accounts : The Fixed Accounts can be offered by all the banks in India ranging from 7 days to 10 years. These are normally called as FD’s. In some other coutries the FD’s are called as Term Deposits or Bond. It contains some Maturity period or tenor. The rate of Interest differs from bank to bank.