Banking Awareness – Types of Bank Accounts and its Features

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Banking Awareness – Types of Bank Accounts and its Features

Indian Banking system offers a wide variety of banking Accounts for their customers. Mainly most of the banks are offering Current Accounts, Saving Banking Accounts, Recurring Deposits and, Fixed Deposits. Whatever due to the recent competition some of the banks are introduced a different product which is the combination of above.

Types of Bank Accounts:

  • Fixed Deposit Account or Time Deposit Accounts
  • Current Account or Demand Deposit Account
  • Saving Account
  • Recurring Deposit Account
  • Demat Account
  • NRI Account

Types of Bank Accounts – Fixed Deposit Account or Time Deposit Accounts:

Cash is deposited in this account for a fixed period. This is not transferable. If the depositor stands in need of the amount before the expiry of the fixed period, he can withdraw the same after paying the penalty to the bank. This type of deposit attracts a high rate of interest. Longer the period of deposit higher is the rate of interest. It is also called Time Liability of the Bank.


  • Period of deposits: 7 days to 10 years.
  • Minimum Amount to Deposit: Varies Bank to Bank
  • Rate Of Interest: Varies Bank to Bank

Types of Bank Accounts – Current Account or Demand Deposit Account:

A depositor can deposit his funds any number of times he likes and can withdraw the same any number of times he wishes. Ordinarily businessmen deposit their funds in this account. No interest is paid by the bank on this account. The bank demands some charges from the depositors if the amount lying in the account falls below the minimum limit.


  • Overdraft facility will be available.
  • Internet banking facility also available.

Types of Bank Accounts – Saving Account:

In this account, interest is given now on per day basis between 10th and 30th of every month.


a). Basic Savings Bank Deposit Accounts (BSBDA):

  • It is also called ‘No-Frills’ account.
  • No need to maintain a minimum balance.
  • Overdraft facility will be up to Rs.5000.
  • ATM card/ ATM cum Debit card, Rupay card will be given.
  • A limited number of transactions will be available. Otherwise, it will be chargeable.

b). Basic Saving Bank Deposit Accounts Small scheme (BSBDS)

  • Total credit of this account should not exceed Rs. 1 Lakh.
  • Account balance should not exceed Rs. 50,000 at any time.
  • Withdrawals and Transfers should not exceed Rs.10,000 in a month.

Types of Bank Accounts – Recurring Deposit Account:

Under this account, a specified amount is deposited every month for a specific period, such as 6, 12, 24, 36, or 60 months it can be even for 120 months. This amount cannot be withdrawn before the expiry of the given period except under exceptional circumstances. Interest on the amount deposited is also credited to the account of the depositor. Like time deposit account, interest paid on this account is higher than other accounts.


  • Minimum Periodic/Monthly installment starts at Rs.10.
  • We can’t alter the installments once fixed.
  • The interest rate approved by the bank was compounded every quarter.
  • Tax Deducted at Source(TDS) will be available.

Types of Bank Accounts – Demat Account:

Demat refers to a dematerialized account. Demat account is just like a bank account where actual money is replaced by shares. Just as a bank account is required if we want to save money or make cheque payments, we need to open a demat account in order to buy or sell shares.

Types of Bank Accounts – NRI Account:

  1. Ordinary Non-Resident Rupee Accounts (NRO Accounts)
  2. Non-Resident (External) Rupee Accounts (NRE Accounts)
  3. Foreign Currency (Non –Resident) Accounts (Banks) (FCNR (B) Accounts)

1). Ordinary Non-Resident Rupee Accounts (NRO Accounts)

  • Rupee-denominated non-repatriable accounts and can be in the form of savings, current recurring or fixed deposits.
  • It can be opened jointly with residents in India.
  • Interest income, from NRO accounts, is taxable. Interest income, net of taxes is reportable.

2). Non-Resident (External) Rupee Accounts (NRE Accounts)

  • These are rupee denominated accounts and can be in the form of savings, current, recurring or fixed deposit accounts.
  • Joint operation with other NRIs/PIOs is permitted.
  • Power of attorney can be granted to residents for an operation of accounts.
  • NRIs, PIOs, OCBs are eligible to open NRE Accounts.

3). Foreign Currency (Non –Resident) Accounts (Banks) (FCNR (B) Accounts)

These accounts may be opened only in the form of term deposit for any of the following maturity periods:

  1. 1 year and above but less than 2 years
  2. 2 years and above but less than 3 years
  3. 3 years and above but less than 4 years
  4. 4 years and above but less than 5 years
  5. 5 years.

Click Here for IBPS Clerk Mains Preparation Time Table (Day-1)

30 Days Study Plan for IBPS Clerk Mains 2017
Days Quantitative Aptitude Current Affairs Static GK / Banking Awareness Reasoning English
Day-1 Simplification, Wrong term in Number Series Sep 1-7 CMs and Governors / About RBI and its Responsibilities Coding and Decoding Errors in Articles
Day-2 Average, Percentage and Partnership Sep 8-14 Country, Capital and Currency (1sthalf) – HQ of banks and Heads Blood Relationship Errors in Tenses
Day-3 Ratio and Problems based on Ages Sep 15-21 Country, Capital and Currency (2ndhalf) – Types of Cheques Direction Sense Errors in Nouns – Pronouns
Day-4 Time & Work and Pipes & Cistern Sep 22 – 30 International Organisations and its HQ – Types of Accounts Syllogism Errors in Verbs


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