Types of Bank Accounts:
Types of bank accounts and their features are available here. Students have a lot of banking awareness topics to prepare. Among those, the different types of bank accounts in India is one of the most important topics for banking aspirants. So, prepare using the types of accounts in bank pdf here.
Dear Aspirants, at present the competition level in Bank exams is very high. It is not very easy to succeed in a banking mains exam. Most of the candidates struggle a lot when it comes to the general awareness section. In the general awareness section of bank exams, banking awareness plays a vital role. So keep a regular touch on all Banking Awareness topics. Here we have given complete details on the different types of bank accounts in India. So, take your time and learn about the different types of bank accounts and their features. Also, for easier preparation, we have added the types of bank accounts in India pdf. So, download the pdf and start your preparation.
Types of Accounts in Bank and their Features
- Fixed Deposit Account or Time Deposit Accounts
- Current Account or Demand Deposit Account
- Savings Account
- Recurring Deposit Account
- Demat Account
- NRI Account
Demand Deposits – In these different types of bank accounts in India, savings and current accounts are known as demand deposits. Because we can withdraw our money at any time from those accounts.
Term Deposits – The fixed deposit account and the recurring deposit account are known as the term deposits. Because we cannot take our money before the stipulated time period.
Types of Bank Accounts – Savings Account:
In types of bank accounts in India, first, we can see about the savings account. Any individual person or Joint persons can open a savings bank account.
- The rate of interest for a savings bank account lies between 4 to 6%
- The bank will provide passbook, ATM card, and cheque books for the savings account holders.
- There is no limit on money deposits. But there may be limits in withdrawals from the savings bank account.
The other types of savings bank accounts are,
a)Basic Savings Bank Deposit Accounts (BSBDA):
- It is known as ‘No-Frills’ account.
- It is not compulsory to maintain a minimum balance in the BSBDA.
- The overdraft facility is up to Rs.5000.
- ATM card / ATM cum Debit card, Rupay card will be given.
- A limited number of transactions is available. Otherwise, it will be chargeable for extra transactions.
b)Basic Saving Bank Deposit Accounts Small scheme (BSBDS)
- The total credit in this account should not cross Rs.1 Lakh.
- Account balance limit is Rs. 50,000 at all time.
- Withdrawals and Transfers limit is Rs.10,000 in a month.
Types of Bank Accounts – Current Account:
In the different types of bank accounts, next, we can see about the current account.
- A current account holder can deposit money any number of times. Also, he can withdraw money multiple times. So it is suitable for businessmen who normally make huge transactions in a frequent time.
- A current account will not fetch interest for the customers.
- Overdraft facility is available.
- A charge is applicable for not maintaining a minimum balance.
- Internet banking facility also available.
Types of Bank Accounts – Fixed Deposit Account (FD):
Cash deposited in the FD (Fixed Deposit) account should remain within the account for a certain period. This is not transferable. If the account holder wants to withdraw money before the expiry of the fixed period, he can withdraw the same after paying the penalty to the bank. Longer the period of deposit higher is the rate of interest. It is also known as Time Liability of the Bank.
- The period of the deposit will vary from 7 days to 10 years.
- Minimum Amount to Deposit: Varies for Bank to Bank.
- Rate of Interest: Varies for Bank to Bank.
Types of Bank Accounts – Recurring Deposit Account (RD):
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. A 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:
- Ordinary Non-Resident Rupee Accounts (NRO Accounts)
- Non-Resident (External) Rupee Accounts (NRE Accounts)
- Foreign Currency (Non –Resident) Accounts (Banks) (FCNR (B) Accounts)
1). Ordinary Non-Resident Rupee Accounts (NRO Accounts)
The NRO account is used to manage your earnings in India.
- 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)
The NRE account is used to transfer your foreign earnings to India.
- 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 in foreign currencies for any of the following maturity periods:
- 1 year and above but less than 2 years
- 2 years and above but less than 3 years
- 3 years and above but less than 4 years
- 4 years and above but less than 5 years
- 5 years.
Here we have added some FAQs regarding the different types of bank accounts in India.
Q: What are the 4 types of bank accounts?
A: The 4 main types of accounts are savings account, current account, FD account & RD account.
Q: What is the interest rate for current account?
A: For the current account, the interest rate is not applicable.
Q: What is the interest rate for savings account?
A: For the savings account, interest rate is 4 to 6%
Q: What are the different types of term deposit accounts?
A: Fixed deposit (FD) and Recurring deposit (RD) accounts.