Types of Bank Accounts

Types of Bank Accounts

In this post, we are going to talk about how many types of accounts are there. And what is the rule of account? We will know all these things in detail in this article.

There are four types of bank accounts:

1.Current Account

2.Saving Account

3.Recurring Deposit Account

4.Fixed Deposit Account

1.Current Account:

Current Account i.e. Current Account is mainly opened in the bank by business firms, companies, entrepreneurs, etc. To open a current account, you need to have a minimum balance in your Account. This Minimum Balance varies from bank to bank.

If you do not comply with the minimum balance in it, then the bank charges the prescribed charge from your Account. In addition to providing current account facilities to its customers, a charge is also charged according to the transaction.

#Benefits of Current Account:

• The biggest advantage of a current account is that you can deposit any amount in this account in a day! It has no limit!
• You can deposit and withdrawal the amount as many times as you want in the current account.
• In this type of account, all types of facilities like Transfer, Net Banking, Mobile Banking, etc. are provided by the bank itself.
• Current Account also provides the facility of bank overdraft to the account holders.
• You are also provided with the checkbook in the current account.

#Current Account Interest Rate:

The bank pays no interest on the current account! If you do not follow the conditions of keeping a minimum balance in your account, the bank charges you.

2.Saving Account:

Saving Account means Saving Account is an account that is created for the common people with the aim of saving their small amount.

You can open a Saving Account by depositing the amount fixed by him in any bank! Interest is also paid at the fixed rate in the amount you deposit in this account. This interest rate varies from bank to bank.

Usually, the interest rate is between 4–6 percent! There is no limit to deposit money in this type of account, but there is a limit to withdraw money.

You can do free transactions 5 or 6 times in a day, but if the transaction is more than this, you have to pay the charge! If you withdraw money from the ATM, you cannot do this more than 30 times.

It is mandatory to keep a minimum balance in a savings account determined separately by different banks. If you do not stay minimum balance, then the bank will charge you.

Let us tell you that banks also open savings accounts at zero amount for school students, in which it is not mandatory to have a minimum balance! Nor is any charge levied by the bank on zero balance account.

#Benefits of Saving Account:

• With a savings account, you can give a small form to your small savings!
• You also receive interest on your deposit in a savings account!
• You can also deposit and Withdrawal in a savings account anytime!
• In a debit account, you are provided various types of facilities like Debit Card, Net Banking, Mobile Banking, Check Book, etc.
• In this, you can also open a joint account.

3.Recurring Deposit Account:

A recurring deposit account, i.e. RD Account, is a very good option to give your small savings a small form. You can deposit a fixed amount of the month in the RD Account! You can deposit this amount from 1 year to 10 years, in which the amount, along with interest, is returned to you on Maturity.

For example, if you deposit 1000 rupees per month for 5 years, then after 5 years, you will get good interest along with your original amount! In this scheme, the interest rate remains between 6 to 9 percent, and this interest rate varies according to the deposit period.

#Benefits of Recurring Deposit Account:

• RD Account is a great way to save! In which you can give a small form to your small savings!
• There is no limit on the maximum deposit in this scheme from a minimum of Rs. 50 (this amount can vary from bank to bank!).
• You also get good interest in the RD Account scheme.
• In this plan, you can withdraw money even before Maturity time, but you will get less interest in it by doing this.
• In this scheme, you can open an RD account in joint also.

4.Fixed Deposit Account:

Fixed Deposit Account, i.e. Fixed Deposit Account, is an account in which you deposit a fixed amount for a fixed time. This period can range from 7 days to 10 years. Like an RD account, a lump sum is deposited in it instead of depositing money every month.

If you withdraw money from FD account before the scheduled time, then the bank imposes a Penalty on you, which can vary from bank to bank.

Most people prefer FD because the interest rate on this account is higher than other accounts. The rate of interest on an FD account usually ranges from 7 to 10 percent. And this interest rate also depends on the deposit amount and the period of deposit.

#Benefits of Fixed Deposit Account:

In a Fixed Deposit account, you can set your lump sum for 7 days to 10 years.

The rate of interest on the FD account is higher than the interest rate on other accounts.

On the amount deposited in this account, you also get a tax benefit of up to a maximum of Rs 1.50 lakh under Section 80C.

So, friends, you must have now understood the Types of Bank Accounts.

If this post has been helpful for you and you must have found it, you can share it on social media if you like our article. Do share with friends, and then if you face any problem, please tell us in the comment.

To get every information in simple language English, like our Facebook page where you are provided with the right information, click here to like our Facebook page.

More Related Posts:
Complete information of what is Income Tax return (ITR)?
RD Scheme of Post Office
How to Save Money? Easy ways to save money.
Great 80C tax saving option
Different types of loans.

For More Bank Accounts Updates, and Information about Types of Bank Accounts, Visit Todaysnewshunt.