Types of Bank Accounts

Types of Bank Accounts

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Bank Account Types

This is the guest post by banksifsccodes.com for providing information on types of bank accounts. Here you can learn about the types of bank accounts.

Bank accounts provides medium for legal transactions, for maintaining deposited money of individual’s. A bank account are of different types to suit particular needs of customer or organization. The Accounts are made of two type: Deposit and Loan Accounts.

Types of bank account

Deposit Accounts again can be classified mainly into four types. They are Current Account, Saving Account, and Recurring Deposit Account & Fixed Deposit Account.

Current Account:

Current account is a type of transaction account maintained where there are basically no limit on withdrawal and deposit amount and frequency. As these accounts have no limits, they provide smoothness to the business and company activities.  This is why, these type of account are mainly maintained by business organizations, firm and companies. However, banks doesn’t pay any interests on amounts maintained in these type of accounts.

Savings Account:

This is the most common and easy type of accounts maintained mostly by individuals. There are certain types of savings bank account depending on the nature of amount maintained in the account and nature of source of deposit to the particular accounts. Generally, a savings bank account demands a certain amount to be maintained on daily basis which varies from Rs.1000 to Rs. 25000. If that is maintained, the bank will pay interest at a prefixed percentage on the amount on quarterly basis. However, if the same amount is not maintained with the given time frame, bank are liable to impose charge on the deposited amount.

Salaried person receives salary on these type of savings account which are named as Salary Account, on the basis on nature of deposit. Salary Account receives the prefixed interest payment quarterly but there are no charges for maintaining any amount, as salary account are mainly zero balance accounts. As long as the salary gets deposited from the designated company account, the person will enjoy the zero balance feature. Once the salary doesn’t get deposited for three consecutive months, the minimum balance for the particular bank policy comes into play. The interest rates for payments also varies from 4% to 7% depending upon respective banks.

Savings account

Apart from Salary Account, there are some bank who provides a Zero Balance Account separately.

Savings account are also linked for trading purpose. The account is known as Demat Account.

Recurring Deposit Account:

This type of account is mainly used for deposit and accumulation of individual fund. As the name suggests, in this type of account a certain fixed amount is to be deposited on monthly basis which may range from 6 months to 10 years. Interest will be paid as per bank’s policy.

Fixed Deposit Account:

This type of account are mainly used for gaining interest on a particular lump sum amount for any individual. In this type of account a particular sum of money is deposited for particular time of span and can withdraw the resultant amount with accumulated interest as per prevailing rate. The interest rates are higher for senior citizen category. Generally it varies from 7% to 10%, depending upon particular bank.

Hence, we are aware there are number of types to open a bank account meeting with actual need of any particular person. Handling of debit card/ credit card are now very popular mode of running transactions.   A bank account is almost necessary for every individual nowadays.

“Hint: Find IFSC codes, SWIFT Codes and MICR Codes of any andhra bank branches from banksifsccodes.com”.

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