DIFFERENT TYPES OF BANK ACCOUNT

TYPES OF BANK ACCOUNT

1) SAVING BANK ACCOUNT
2) CURRENT BANK ACCOUNT
3) RECURRING  BANK ACCOUNT
4) FIXED DEPOSIT BANK ACCOUNT

1) SAVING BANK ACCOUNT

1. SAVING ACCOUNTS ARE THE INDIVIDUAL ACCOUNT FOR THE PERSONAL PURPOSE OF SAVING MOST OF THE INDIVIDUALS SAVE THEIR INVESTMENTS WITH THIS ACCOUNT.
2. THE SAVING ACCOUNT IS OPENED ON THE NAME OF INDIVIDUALS ONLY.
3. ON SAVING ACCOUNT INDIVIDUAL EARN SOME  RATE OF INTEREST THESE RATE OF INTEREST VARIES FROM BANK TO BANK
4. WHEN A PERSON OPENS A  SAVING ACCOUNT HE IS PROVIDED WITH THE PASS BOOK, ATM , CHEQUE BOOK.
5. ON SAVING ACCOUNT THEIR IS NO RESTRICTION ON THE NUMBER AND AMOUNT OF DEPOSIT BUT THEIR IS CERTAIN RESTRICTION ON THE WITHDRAWAL OF THE MONEY.
6. MINIMUM BALANCED HAD TO BE MAINTAINED BY THE CUSTOMER AS MENTIONED BY THE BANK.

2) CURRENT BANK ACCOUNT

1. CURRENT ACCOUNTS ARE THE ACCOUNTS OPENED FOR THE BUSINESS TRANSACTION, ON THE NAME OF THE FIRM OR COMPANY. THESE ARE NEVER USED FOR THE PURPOSE OF SAVING & INVESTMENT.
2. THERE IS NO LIMIT ON THE NUMBER  OF TRANSACTIONS AND AMOUNT IN A DAY SUCH AS  DEPOSIT  &  WITHDRAWAL.
3. THERE IS NO  INTEREST PAID  ON THE AMOUNT  HELD IN THE  AMONUT BUT THEIR ARE SOME SERVICE CHARGES ON SUCH ACCOUNTS.
4. THESE ACCOUNTS  HAVE NOT ANY FIXED MATURITY  AS THESE ACCOUNTS  ARE ON REGULAR BASIS.
5. NO PASSBOOK IS ISSUED  FOR THE CURRENT ACCOUNTS HOLDERS.
6. MINIMUM  AMOUNT NEEDED  TO OPEN A  CURRENT ACCOUNT VARIES FROM BANK TO BANK.
7. MANY FACILITIES ARE PROVIDED TO CURRENT ACCOUNT HOLDER SUCH AS OVERDRAFT FACILITY, STATEMENT OF ACCOUNT.

RECURRING BANK ACCOUNT 

1. TOTAL  AMOUNT IS REPAID ALONG WITH INTERST  AFTER A FIXED  PERIOD OF TIME.
2. THE MAXIMUM PERIOD OF DEPOSIT IS  TEN YEARS AND MINIMUM PERIOD OF DEPOSIT IS SIX  MONTHS.
3. NO WITHDRAWALS ARE ALLOWED  FROM RECURRING DEPOSIT ACCOUNT.
4. BANK MAY ALLOW CLOSE OF ACCOUNT BEFORE THE  MATURITY PERIOD.
5. INTEREST RATE MAY VARY FOR DIFFERENT PLANS BASED  ON THE AMOUNT DEPOSIT, PERIOD OF TIME AND ALSO ON BANKS.
6. ACCOUNT CAN BE OPENED IN  SINGLE OR JOINT  ACCOUNT.

FIXED DEPOSIT BANK ACCOUNT

FIXED ACCOUNT IS  A ONE TIME DEPOSIT OF A MONEY FOR A  CERTAIN PERIOD OF TIME DURATION SAY 3 YEAR, 5 YEAR , 8 YEAR , 10 YEAR.

NO WITHDRAWAL ARE ALLOWED DURING THIS PERIOD.

IF YOU WITHDRAWAL BEFORE MATURITY PERIOD CERTAIN PENALTY WILL BE FINE.

NO PASSBOOK IS PROVIDED OR ATM CARD FOR THESE KIND OF ACCOUNT

INTEREST RATE VARY FROM BANK TO BANK BUT IS USUALLY IN RANGE BETWEEN 6 - 8 PERCENT