If you want an open an account in the bank then you should also know about how many Types of Bank Accounts in India and how I can take benefits from these accounts.
In today’s time, having a bank account is not only necessary but is also a requirement for many things. But do you know how many bank accounts are there? People often get confused about the difference between different types of bank accounts in India. While facilities, rules and benefits are also different in different types of bank accounts. Also, the charges on those accounts are also different in all accounts.
Here we will tell you about different types of bank account, from which you can choose the best option for yourself.
Types of Bank Accounts in India
There are 10 types of bank accounts, know which one is best for you.
- Current Account
- Savings Account
- Salary Account
- Fix Deposit Account
- RD Deposit Account
- NRI Account
- Senior Citizen Savings Account
- Woman Savings Account
- No-Follow Savings Account
- Student Savings Account
Read In Full Details
1. What is Current Account
A current account is a deposit account for Traders, Business Owners, and Entrepreneurs who need to pay and receive more often than others. There is no limit on daily transactions in this account. This account also has an overdraft facility. There is no interest in this account. Also, it is necessary to keep some minimum balance in it.
2. What is Savings Account
A savings account is a regular deposit account, in which you get an interest rate on the deposit amount. Here there is a limit of transaction for you every month. After complete the limit, if you want more transactions then you must be pay bank charges by bank rules. In this, many banks also offer zero balance account. Regular savings accounts have several categories, including savings accounts for children, senior citizens or woman. You can open joint account in savings accounts with your blood relationship person. If you find best types of bank accounts in India then savings account better option for you.
3. What is Salary Account
A salary account between different types of bank accounts is an account that is opened under a tie-up between your company and the bank. In this, a particular company has a tie-up with a particular bank and the account of all the employees of the company is opened in the same bank. Your salary comes into the account opened in the same bank. There is no need for minimum balance in this account.
4. What is Fix Deposit Account
Fixed Deposits are a better option for investing your fund and earning good interest in it. The duration of an FD account is 7 days to 10 years. Some banks offers the facility to withdraw money ahead of time. But in that case, you get less interest.
5. What is RD Deposit Account
Recurring Deposits (RD) have a fixed duration. To earn interest, you have to invest a fixed amount in this account regularly. Unlike FD, you can deposit a small amount in it. The maturity period of RD can be between six months to 10 years.
6. What is NRI Account
NRI (Non Residence in India), there are different types of bank accounts for Indians living abroad or people of Indian origin. These accounts are called foreign accounts. These include two types of savings accounts and fixed deposits- NRO or Non- Resident Ordinary and NRE or Non Resident External. Banks also offer foreign currency not-resident fixed deposit accounts. When you inform your bank about your NRI status, your bank can convert your existing Savings or Current account to an NRO account (Non-resident Ordinary Rupee Account) on submission of required documents Following are some information regarding the features, benefits, and advantages of an NRO account:
7. What is Senior Citizen Savings Account
As the name itself suggests, this is a special savings bank account for Senior Citizens. It is best for people above 60 years of age. Many benefits are found on this account. The senior citizen bank accounts offer higher interest rates as compared to normal savings accounts, with personalized services convenient for senior citizens. This bank account comes with benefits such as free insurance, lifetime free debit card, reimbursement accidental hospitalization cover of Rs 50,000 per annum, and a free rewards International Debit Card.
8. What is Woman Savings Account
Many banks offer special savings accounts to meet the financial needs, investment and lifestyle need of woman. There are advantage like attractive benefits and cash bank offers on these accounts from banks.
9. What is No-Frill Savings Account
The central bank had introduced ‘no-frills’ accounts in 2005 to provide basic banking facilities to poor and promote financial inclusion. The accounts could be maintained without or with very low minimum balance. No Frill account holders are not required to maintain minimum balance criteria or very low minimum balance. However there are also some limits on no-frills accounts, which very from bank to bank.
10. What is Student Savings Account
Some banks offer special savings accounts for students. There is no need to keep any minimum balance. However, these rules may be different in different banks. The applicant for this particular bank account must be an Indian Citizen. The applicant must be a student of an institution that is abroad. The age limit should be between 10 years to 30 years at the time of opening account.
Student account has many advantages. International ATM and Debit card facilities are available on this account. That is, you can easily use it from anywhere around the world. These accounts can be opened with a minimum balance of Rs 500. Rather some banks also offer zero balance of student account. You will not have to pay any tax on the interest received on the deposits.
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