Bank Account Types in India

Last updated on June 18th, 2018 at 11:55 am

Bank deposit is provided for keeping accounts safe . Bank allows to deposit and withdraw money. Some banks allow interest and some make charges.  Various transactions are being taken place in bank and are recorded in the banks books and the balance is recorded in liability of the bank. Below enlists various type bank deposits:

1. Savings account

Saving account  encourages people to save money. This is one of the Bank Account Types.  In India this account can be opened with Rs 100. An individual can withdraw money from account when he requires. Attractive interest rate is provided upto 4% to 6%. Interest rate differs every time. In India mandatory PAN is needed for cash transactions exceeding Rs 50000. Cheque facility is offered to withdraw money when required. Loan facility is not provided in savings account.

2. Current account

Current bank account is used by business persons for regular transactions meeting both deposits and withdrawals. This is one of the Bank Account Types. It is termed as demand deposit. It is allowed in both co-operative bank and commercial banks. The individual can deposit and withdraw at any time. No restriction is supported for amount of deposits and withdrawals. No interest facility is provided on account. it provides overdraft facility. It facilitates Industrial progress of the country.

3. Fixed Deposit

Fixed deposit is meant for fixed period and is repaid after specific period. Money is deposited for fixed period six months, one year, five year, ten year. This is one of the Bank Account Types. Deposited money cannot be withdrawn before expiry period. Rate of interest varies from time to time. The period for it ranges from 15 days to 10  years. Amount is deposited at one time. Rate of interest is high in fixed deposit on surplus funds

4. Recurring deposit

Recurring deposit is meant for future savings. it is meant for pre-planned purposes like wedding, purchases of expensive items like car, refrigerator, air conditioner. This is one of the Bank Account Types. It is opened by individuals who save at regular intervals and earn higher rate of interest at fixed rate. It enables regular saving habits. In India Rs 10 is deposited at regular intervals. The rate of interest is higher. It provides loan facility.Loan is given at the rate of 75%.