It is hard to come across anyone who does not have a bank account in today’s time as life comes to a standstill without one. People also have multiple accounts in the same bank or separate accounts in separate banks. Have you ever wondered about the wide array of services your bank provides? Accounts can be of different types, each suited to the specific needs of the customer. Each sort of bank account has unique characteristics, advantages, and requirements. You can select any one or more of these bank accounts based on your financial objectives and needs.
Savings Bank Account
The most common bank account type is a savings one. By making a minimum deposit, a savings account can be opened in any public or private bank. The minimum deposit varies depending on the bank. The money deposited in the savings account can be withdrawn at any time. Facilities of ATMs, passbooks, check book, net banking, and mobile banking are available.
Current Deposit accounts are generally opened by large corporations, businesses, and institutions that need to carry out big transactions regularly. The bank also allows the current account holder to withdraw more than his deposit amount. This is called an overdraft facility.
Fixed Deposit Account
You can put a sizable sum of money in an FD account for a set period at a predefined rate of interest. You receive a lump payment after the term combined with interest, which is a wise financial strategy. Different interest rates are offered by banks for fixed deposit accounts. When compared to savings accounts, the interest rate offered is higher.
You can open a recurring deposit account at the bank if you want to deposit money at short intervals for a set amount of time (such as one year or five years). RD accounts are typically opened by those who lack the resources to deposit large sums together. They invest a small amount of money each month to build up their savings. Additionally, the money placed in an RD account receives greater interest than it would in a savings account.
A salary account is simply an account opened by your employer to deposit your salary into and is just a savings account, having all the facilities of one.
NRI Bank account
This account is for Indians who live abroad. NRI accounts come in three different types. These are Foreign Currency Non-Resident Account (FCNR), Non-Resident Ordinary Account (NRO), and Non-Resident External Account (NRE).
People who are into the stock market generally open this account. It functions exactly like a typical bank account. You keep the shares you purchased in this account. Through this account, shares can be purchased and sold.