TYPES OF BANK ACCOUNTS

As we all know that money plays an important role in everybody's life.Nowadays for all purposes such as education,entertainment,travelling money required. Generally mostly peoples save their larger percent of income in their respective banks.The main purpose behind their saving is to get some extraa money which is known as "INTEREST". But sometimes their normally faces some loss from  banks.So to avoid such situations you should know the various types of bank accounts which is provided by banks.

1.   SAVING ACCOUNT

Saving account or basic saving bank bank deposit account[BSBDA] is a basic type of account.It allow us to deposit money , withdraw money and provide security to our money.

In this type of account most of the banks have their minimum balance policy in which customer have to maintain some amount to keep their account service . Facilities such as ATM card,online banking services,Debit card and rupay card are provided for account holders. And their is an limitation  and advantage for account holder that their can do 4 withdraw over a month and their is no limit for deposits.The main advantage of saving account is that it provides us 4% to 6% Interest for whole year.

2.  CURRENT ACCOUNT

Current account also known as financial account which is 

a type of deposit account maintained by individuals.It is designed to facilitate the frequent transactions such as transfer funds, receive cheques etc.While comparing with saving account,current account required higher minimun balance.It allows transations beyond saving account.

Just like savings account it also provides facilities such as atm ,cheque ,online banking services etc

Advantage of current account is that it can be operated by public

and individual companies, proprietary concern etc. It does not provide any type of interest to account holders.

3. RECURRING DEPOSIT ACCOUNT

A recurring deposit account is special kind of term deposit offered by banks which helps people with regular incomes to deposit a fixed amount in every month In their RD  account.The account holders gets an interest usually ranges from 5% to 7.85%. The advantage of this account is that a person can deposit money ranging 10 to 50 as per his convience. The minimum period of deposit Starts at 6 month and maximum period of deposit is 12  month.

4. FIXED DEPOSIT ACCOUNT

A fixed deposit or term deposit/time deposit is a financial instrument provided by banks 

or NBFI [NON BANKING FINANACIAL INSTITUTIONS]

A FD account provides an higher interest for investors as compared to saving account.Fixed deposits are ideal for investors when they are averse to take risk.

5.  DEMAT ACCOUNT

Demat or dematerialized account is a account used to hold shares and securities in electronic form. The purpose of holding demat account is converting physical to electronic shares which makes trading easy through online process.

The benefits of Demat account are as follows:

• Easy and convenient way to hold securities
• Safer than paper-shares (earlier risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. are mostly eliminated)
• Reduced paperwork for transfer of securities
• Reduced transaction cost
• No "odd lot" problem: even one share can be sold

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