Types Of Banking Account: Bank Account is a type of account in which a person can deposit and withdraw money or funds as per their needs. It is a financial account that is maintained and controlled by a bank and keeps a record of the transactions between the customer and the bank. Understanding the types of banking accounts in India is a very important topic in the general banking awareness syllabus for most of the competitive exams. In this article, we will talk about the types of Banking Accounts in India.
There are many types of Banking Account in India that serve different services and financial needs like checking accounts, transactions, bill payments, money market accounts etc. In this article we will talk about different types of Banking Account in India in detail.
A Savings Account is a type of Bank Account that can be opened by either an individual or jointly. It is a regular deposit account where you earn a minimum rate of interest. For opening a savings account an individual should hold an Aadhar Card and a Pan Card which are mandatory documents for opening a savings account.
Key Features of Savings Account
It is a type of Account which is basically for businessmen where money can be transferred frequently between financial accounts. This type of account is suitable for transactions by corporations and businesses.
Key Features of Current Account
In this type of account there is a special kind of Term Deposit offered by banks which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the desired rate of interest. Recurring Deposit accounts are normally allowed for maturities ranging from 6 months to 120 months.
Key features of Recurring Deposit Account
This type of account is opened for a particular fixed time period by depositing a particular amount is known as Fixed Deposit Account. Fixed Deposit Account may be opened for a minimum period of 7 days and maximum period of 10 years.
Key features of Fixed Deposit Account
Foreign Currency Non-Resident Accounts have to be opened and maintained in foreign currency. Your principal amount and the interest in an FCNR Account are fully repatriable, i.e., transferable. Interest income earned on your money in an FCNR account is non-taxable in India.
Key features of Foreign Currency Non-Resident Accounts
NRE Accounts are maintained in Indian Rupees (INR). This means that when you deposit the money in the NRE Account, the foreign currency is converted to Indian rupees at the prevailing foreign exchange rates. It is mainly used to house your savings from income that you have earned abroad. The principal amount, as well as the interest, are fully repatriable, i.e., transferable. The interest income earned on the amount in an NRE account is non-taxable in India. You can have other NRIs or Resident Indian (who is a close relative as per Companies Act 2013) as joint account holders in NRE Accounts.
Key features of Non-Resident External Rupee Account (NRE)
NRO Accounts are maintained in INR. It is used to house funds from your income that you have earned from India or abroad. Income like rent, dividend, pension, etc. can be sent abroad through the NRO Account. Interest income earned on the amount in an NRO Account is liable for TDS or Tax Deductible at Source. You can have other NRIs or Resident Indians as joint account holders in NRO accounts.
Key features of Non-Resident Ordinary Rupee Account (NRO)
This type of account is opened for the employees from big firms, corporations, and businesses for the purpose of smooth transactions of salary from employers to employees.
Key features of Salary Account
In this article we have discussed different Types of Banking Account which are available in India. So, go through the article very carefully. It is very important to understand it from a Banking Awareness point of view.
There are many types of Bank Accounts in India Savings Account, Recurring Deposit Account, Current Account, Fixed Deposit Account, and NRI Account.
Current Account is suitable for daily needs.
A Savings Account is a regular deposit account where you earn a minimum rate of interest.
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