Types of Bank Accounts - Indian Banking System.

Reserve Bank of  India

CURRENT ACCOUNT:

·         Current accounts are usually for businessmen and daily transactions.

·         It doesn’t serve a purpose of saving  your investments. The transaction facility to this account is so flexible that you can make innumerable transactions in a day.

·        The banks don’t pay any interest on your  amount but it charges certain service charges on such accounts.

SAVINGS ACCOUNT:

·         Savings Accounts are the most popular kind of individual accounts for personal purpose of saving your investments and getting interest rates.

·         Savings account provides cheque facility along with flexibility for deposit and withdrawal of f unds from your account.

·         At present Interest rate is  4% .

FIXED DEPOSIT:

·         Fixed Deposits popularly known as FD are available at various schemes with a tenure from 7 days to 10 years.

·         This account is specially designed who want to deposit their savings for a long term to gain good rate of interest.

·         The interest rate on these accounts varies from bank to bank.

·         Generally ,   interest rate is between 7 % p.a.  to 9 % p.a.

RECURRING DEPOSIT:

·         Recurring deposits also known as RD accounts who wish to invest an average amount of their savings on a monthly basis.

·         These accounts gain interest on the amount available in your account.