There are various type of Bank accounts in India mentioned in below.
- Saving account
- Current account
- Recurring deposit account
- Fixed Deposit account
- FCNR Deposit account
- NRO Account
- NRE Account
Here we are going to give full details about types of bank account. So those students are going to participate in upcoming bank exam must read this article.
Saving Bank account:
Saving bank account is one of the simplest form of the deposit account. When you are start relationship with bank, saving bank account is the primary account initiating a banking relationship. These types of accounts are meant to inoculate a banking habit and saving discipline. In bank also given option that customer have to deposit amounts as and when the save and also can withdraw as per recruitment. The capital demanded is suddenly paid by the banker and hence it is demand liability for him.
Who can open saving bank account? :
- An Individual persons in his own name.
- In joints name two or more persons.
- In case of saving bank account, In the name of a minor by natural guardian or court appointed guardian.
- Minors should be above 10 years of age,who can also read and write.
- In the name of illiterates under thumb impression.
- In case Clubs, trust associations are not engaged in business.
- Saving bank accounts are not related for commercial transactions as there is restriction on the number of withdrawals that can be made. Interest is also calculated on the daily basic balance in the account. Interest paid twice during a period of twelve months at half yearly intervals.
- Saving bank accounts customer is released passbook/statement of accounting giving details of the deposit and withdrawals made by them. Account owner are also issued cheques books for facilitating withdrawals from the account. In case of saving bank accounts is also requirement of the minimum balance to be maintained in accounts.
- Saving bank account can be started only with proper introduction regarding the identity of the prospective customer. Account holder should have to complete documentary evidence in support of identification with proof of residential address is compulsory as banks otherwise are liable for conversion of funds. In case of saving account minimum balance has to be maintained in the account as prescribed by the bank.
- Financial institution or bank should not get protection under the law as provided for in the negotiable Instruments Act, 1881. Possibility of engagement in anti-social activities and tax evasion. There is also “Know your customer” and “Anti Money laundering” norms have therefore been stipulated to enable the bank to satisfy itself about the true identity of the customer.
There will be opened for purpose like professionals, business and entities in commercial activities.
Those persons can open current accounts are mentioned in below:
- Individuals persons single and jointly.
- And Sole Proprietorships
- There are many institutions like clubs, societies, associations and educational institutions
- Partnership firms
- Hindu Undivided families (HuFs)
- Limited companies
- Statutory companies
- A current account permits any number of transactions during any given day without any restriction on deposit and withdrawals. A Current accounts being open to demand for withdrawals at all times like, makes the bank to remain prepared with funds. There will be no provision of payment of interest. There are many facilities providing to current account holder, banks will generate income for themselves. Like business is generated through collection of cheques and documentary bills of exchange, issue of drafts, grant of overdrafts, opening of letter of credit, bank guarantee etc.
- There will be no restriction on the number of cheque books that may be issued to the account customer, though they come against payment of charges. There are also minimum balance is insisted upon, which differs from bank to bank. Penalties are levied in case the balance drops below the permissible minimum. Annul charge are also levied in such accounts for services rendered during the year.
Fixed Deposit accounts:
In case of fixed deposit accounts are deposits given to the bank for fixed period. Deposits may vary from 7 days to 120 months as per suitability of the customer. Saving of the account holders which they can be afford to keep with the bank for a particular duration to earn interest constitute such deposits. There will be interest payable on fixed deposits as per the duration of the deposit. The rates of interest generally increase with the increase in the time period till one year. Thereafter the interest rates offered may be higher or lower depending upon the funds requirement of the banks.
Who can be opened fixed deposit accounts?
- An individual can be opened in his own name
- More than one individual in their joint names
- On behalf of a minor by his natural guardian or by a court appointed guardian
- Can be opened in the name of clubs, societies, associations, sole proprietorships, partnerships firms, joint stocks companies, executors, administrators, educational institutions.
- Illiterate persons to be operated under thumb impression
Recurring Deposit accounts:
- In case of recurring deposit account, A Specified amount is deposit every month for a specific period like as 12, 24, 36 or 60 months it can be even for 120 months. In case of RD account, 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.