TYPES OF BANK ACCOUNTS

1. SAVING ACCOUNT
2. CURRENT ACCOUNT
3. RECURRING DEPOSIT ACCOUNT
4. FIXED DEPOSIT ACCOUNT
5. DEMAT ACCOUNT

SAVING ACCOUNT – It can be opened by an individual or jointly by two people with the aim of saving money. Opening a saving account gives you a benefit that the bank pays you interest for opening a savings account.

Features of the saving bank account:

• There is no restriction on depositing money but there is a restriction on the number of times money can be withdrawn from the account.
• The rate of interest that an account holder holds varies from 4% to 6% per annum.
• There is no such requirement needed for maintaining a minimum amount of balance.
• Holders of the saving account can get ATM, debit card, or Rupay card if they want to.
• It can be further divided into BSBDA Basic Savings Band Deposit Accounts and BSBDA Basic Saving Bank Deposit Accounts Small Scheme.
• The savings account is mostly eligible for students, pensioners, and working professionals.

CURRENT ACCOUNT – these accounts are not for the purpose of savings.

Features for the current account:

• Mainly opened for businessmen. Associations, contractors, companies, religious institutions, and other business-related works.
• There is no limit either in depositing or withdrawing the amount of money.
• Internet banking is also available.
• It doesn’t have any fixed maturity.
• No rate of interest paid on such accounts.

RECURRING DEPOSIT ACCOUNT - It is a type of account wherein the account holder needs to deposit a fixed amount of money every month until it reaches the fixed maturity date.

Features of recurring deposit account:

• Any individual or institution can open an account either separately or jointly.
• Instalments can be either monthly or periodically, need to add as low as Rs50 or may vary from bank to bank.
• The range of months can vary from 6 months to 120 months.
• The interest rate varies upon the bank you choose to open an account with.
• A nomination facility is available too.
• Passbook is issued for the recurring deposit account.

FIXED DEPOSIT ACCOUNT – It can be opened in any public and private sector bank. It is opened for a fixed period.

Features of the fixed deposit account:

• A fixed deposit account is a one-time deposit and a one-time takeaway account.
• The account holder needs to deposit a fixed amount of sum for a fixed period.
• The amount deposited in the fixed deposit account can only be withdrawn all at once.
• On the FD Account, the bank can pay interest.
• The rate of interest depends on the amount of money you deposit and the tenure.
• Full repayment of the amount is available even before the maturity date.

DEMAT ACCOUNT – It can be held in electronic format. DEMAT account also stands for Dematerialized Account. Features of the DEMAT account:

• Helps in facilitate easy trade of shares and bonds.
• Helps in conducting stress-free transactions.
• KYC is required for opening an account.
• Transaction cost is low as compared to others.
• There is no foundation on traders. Traders can work from anywhere.
• Transfer of securities can be reduced with reduced paperwork.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, White Code Legal and Tax shall not be responsible for any errors caused due to human error or otherwise.