- The financial arrangement between a depositor or debt holder and a bank.
- Bank accounts are usually made up of various types of deposit account and loan account.
Types:
Current Account:
- Current account are usually for business and daily transactions.
- It doesn't serve a purpose of saving your investments.
- The transaction facility to this account is so flexible that you can make innumerable transactions in a day.
- Hence, the bank don't pay any interest on your investment amount but it charges certain service charges on such accounts.
Savings Account:
- Savings account are the most popular kind of individual accounts for personal purpose of saving your investments and getting interest rates.
- Saving account provides cheque facility along with flexibility for deposit and withdrawal of funds from your account.
Recurring Deposit:
- Recurring deposit also known as RD accounts who wish to invest an average amount of their savings on a monthly basis.
- These accounts gain interest on the amount available in your account.
- This account is specially designed for the working public who don't want to invest a large amount at one instance.
Fixed Deposit:
- Fixed deposit popularly known as FD are available at various schemes with a tenure from 7 days to 10 years.
- This account is specially designed who want to deposit their savings for a long term to gain good rate of interest.
- But the interest rate on these accounts varies from bank to bank.
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