Types of Bank Accounts: Explained in Details

This topic is important for bank exams, as generally many questions are asked in bank exams and interview on bank accounts like what are different types of accounts in bank , what is difference between current account and saving the account .So understanding this topic is very important.

Various Types of Bank Accounts

  1. Saving Account 
  2. Regular Savings
  3. Current Account 
  4. Recurring Deposit Account 
  5. Fixed Deposit Account 
  6. DEMAT Account
  7. NRI Accounts

1) SAVINGS ACCOUNT:-

a) Basic Savings Bank Deposit Accounts (BSBDA)

  • This account will be considered as normal banking service.
  • For this account, maintenance of minimum balance is not required.
  • ATM card/ ATM cum Debit card, Rupay card will be given for the account holders.
  • There are going to be no limit on the number of deposits that can be made in a month but, account holders will be allowed most of 4 withdrawals in a month, which includes ATM withdrawals also.
  • The above facilities will be given without any charge. There will be no charge levied for non-operation/ activation of in-operative basic saving bank deposit account.
  • For this account, overdraft facility will be provided up to Rs. 5000/-.


b) Basic Saving bank Deposit Accounts Small scheme (BSBDS)

  • These are accounts with relaxed KYC, with a minimum document requirement of self-attested address proof & photograph.
  • Total credit should not exceed 1Lakh rupees in a year.
  • Maximum balance should not exceed Rs. 50,000/- at any time.
  • Cash withdrawals & transfers must not exceed Rs.10, 000/- in a month.
  • Remittance from foreign account cannot be credited to this account without completing normal KYC formalities.
  • This account can be opened only at Core Banking Solution linked branches of banks or at such branches, where it is possible to manually monitor the fulfillments of the conditions.


2) REGULAR SAVINGS BANK ACCOUNT


  • Any resident individual- single accounts, two or more individuals in joint accounts, Associations, clubs etc., are eligible for this account.
  • Modest credit option available to the depositor.
  • Two free cheque books will be issued per year.
  • Internet banking facility will be provided without any charge.
  • Balance enquiry, NEFT, Bill payment, Mobile recharge etc., are provided through mobile phones.
  • Students can open this account with zero balance by providing the required documents.


3) CURRENT ACCOUNT


  • Any resident individual- single accounts, two or more individuals in joint accounts, Associations, Limited companies, Religious Institutions, Educational Institutions, Charitable Institutions, clubs etc., are eligible for this account.
  • Payments can be done unlimited number of times.
  • Funds can be remitted from any part of the country to the corresponding account.
  • Overdraft facility will be available.
  • Internet banking facility is available.


4) RECURRING DEPOSIT ACCOUNT

CUMULATIVE DEPOSIT SCHEME

  • Any resident individual- single accounts, two or more individuals in joint accounts, Associations, clubs, Institutions/Agencies specifically permitted by the RBI etc., are eligible to open this account in single/joint names.
  • Periodic/Monthly installments can be for any amount starting from as low as Rs.50/- onwards.
  • Account can be opened for any period ranging from 6 months to 120 months, in multiple of 1 month.
  • The amount selected for installment at the start of the scheme will be payable every month.
  • The number of installments once fixed, cannot be altered.
  • Approved rate of interest is compounded every quarter.
  • The amount after maturity will be paid to customers one month after the deposit of the last installment.
  • Pass book will be given to the depositor.
  • TDS will be applicable on the interest, as per the latest changes in the Income Tax Act on cumulative deposits also.


5) FIXED DEPOSIT ACCOUNT

a) SHORT DEPOSIT RECEIPT

  • Banks accepts deposits from customers varying from 7 days to a maximum of 10 years.
  • The period of 7 days & above but not exceeding 179 days deposits is classified as ‘Short Deposits’.
  • The minimum amount that can be deposited under this scheme is Rs. 5 lakh for a period of 7-14 days.

b) FIXED DEPOSIT RECEIPT

  • Any resident individual- single accounts, two or more individuals in joint accounts, Associations, Minors, societies, clubs etc., are eligible for this account.
  • The minimum FDR in metro & Urban branches is Rs. 10,000/- & in rural & semi urban & for Senior citizens is Rs.5000/- .
  • For the subsidy kept under the government sponsored schemes, Margin money, earnest money & court attached/ordered deposits, minimum amount criteria will not be applicable.
  • Depositors may ask for repayment of their deposits before maturity. Repayment of amount before maturity is allowable.
  • Interest rate differs from bank to bank depending upon the tenure of the deposits & as when the bank changes the rate.
  • Additional interest of 0.50% is offered for senior citizens on deposits placed for a year & above.


6) DEMAT ACCOUNT


  • Used to conduct stress-free transactions on the shares.
  • An individual, Non-Resident Indian, Foreign Institutional Investor, Foreign National, Corporate, Trusts, Clearing Houses, Financial Institution, Clearing Member, Mutual Funds, Banks and Other Depository Account.
  • For opening this account, an individual has to fill a form, submit a photo of the applicant along with a photocopy of Voter ID/ Passport/ Aadhar card/ Driving License & Demat account number will be provided to the applicant immediately after the completion of processing of the application.
  • Facilities provided under this account are- Opening & maintaining of Demat accounts, Dematerialization, Rematerialization, Purchases, sales, Pledging & Unpledging, safe custody.


7) NRI ACCOUNTS:-

a) NRO ( Non-Resident Ordinary Rupees) Account
b) NRE ( Non-Resident External Rupees) Account
c) FCNR ( Foreign Currency Non-Resident ) Account
Account opening
FCNRNRIs/PIOs/OCIs(Individuals/entities of Bangladesh/Pakistan require prior approval of RBI
NRENRIs/PIOs/OCIs(Individuals/entities of Bangladesh/Pakistan require prior approval of RBI
NROAny Individual resident outside India
Joint Account
FCNRIn the names of two or more non-resident individuals. With a local close relative on 'former or survivor basis'
NREIn the names of two or more non-resident individuals. With a local close relative on 'former or survivor basis'
NROIn the names of two or more non-resident individuals. With a local close relative on 'former or survivor basis'
Currency in which account is denominated
FCNRUS dollar, pound sterling, Yen, Euro, Australian dollar & Canadian dollar
NREIndian Rupees
NROIndian Rupees
Nomination
FCNRAllowable
NREAllowable
NROAllowable
Account Type
FCNRTerm Deposit only
NRESavings, Current, Fixed, Recurring deposit
NROSavings, Current, Fixed, Recurring deposit
Interest Rate
FCNRBanks are allowed to determine interest rates for Deposits
NREBanks are allowed to determine interest rates for Deposits
NROBanks are allowed to determine interest rates for Deposits
Fixed deposits-period
FCNRNot less than 1 year and not more than 5 years
NREMin- 1year Max- 10years
NROAs applicable to resident accounts
Income Tax
FCNRNot Taxable
NRENot Taxable
NROTDS on Interest received on NRO deposits to be deducted at 30.90%
Repatriability
FCNRRepatriable
NRERepatriable
NRONon- Repatriable
Loans in India
1)To account holder  2)To third parties
FCNRWithout any financial ceiling on the loan amount subject to standard margin requirements
NREWithout any financial ceiling on the loan amount subject to standard margin requirements
NRO
  1. Permitted
  2. Permitted
Loans in Abroad
1)To account holder 2)To third parties
FCNR1) Without any financial ceiling on the loan amount subject to standard margin requirements
2) Not Permitted
NREWithout any financial ceiling on the loan amount subject to standard margin requirements
NRO
  1. Not permitted
  2. 2) Not permitted
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4 comments:

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    ReplyDelete
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    ReplyDelete
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    ReplyDelete

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