Types of Deposit Accounts

TYPES OF DEPOSIT ACCOUNTS 





Deposit Accounts 
Deposit accounts are open in a bank. There are many types of accounts such as
  • Savings Bank Account
  • Current Accounts
  • Recurring Deposits
  • Fixed Deposit Account
We can open any of the accounts from the above except current accounts, current accounts are managed only by businessmen.

Savings Bank Accounts 

Savings Bank Accounts are generally preferred by middle and low-income groups. Savings Bank accounts paid a certain rate of interest as prescribed by the Reserve Bank of India. The rate of interest of this type of accounts is less than a Fixed Deposit Accounts and greater than a Current Accounts. SB Accounts are mainly meant for Non-Trading Customers. A customer can deposit any amount subject to a minimum of 5 in Savings Bank Accounts. This type of accounts can be opened with a very small amount say Rs. 100. But a minimum balance of Rs. 1000 is required to open an account with a cheque facility. There are restrictions as to the number and the number of withdrawals over a period.

Current Accounts

These types of accounts are opened by businessmen. Current Accounts are used mainly for business transactions. These accounts do not provide any rate of interest to the account holders. There is any type of restrictions imposed on the amount and number of withdrawals to be made each day. The Current Account holder has numerous and continuous banking transactions. 

Recurring Deposits

Recurring Deposits are a special type of Savings Bank Account introduced by banks recently. The main aim of introducing this type of account is to create a savings habit among the low-income groups. This account is generally meant for regular monthly income people. The account holder can deposit a fixed amount every month for an agreed period. The depositing amount should be the multiple of Rs. 5 or Rs. 10. In this account, the account holder does not allow to withdraw money from the account before the expiry of the agreed period. The period of Recurring Deposits Account is ranging from 1 to 10 years. 

Fixed Deposit Account

Fixed Deposit Account is opened for a fixed period. So such accounts are also called "Term Deposit". These deposits are repayable only after the expiry of the specified period. The Fixed Deposit Accounts provide a rate of interest to the account holders. The rate of interest of this type of accounts is larger than a savings bank account. The Fixed Deposit Accounts are provided a high rate of interest. But there is no fixed rate for the interest. It varies according to the period taken for the fixed deposit. Any type of person can take a Fixed Deposit Account.

The Savings Bank Account can be opened for any income group of the society. But the Current Account can be opened only by businessmen other people of the society cannot open a current account. The Recurring Deposit account is mainly focused on the lower-income or regular monthly income groups. Fixed Deposit Accounts are opened for a fixed period.

All Type of accounts is provided a rate of interest except the current account. Fixed Deposit Accounts provided a high rate of interest.

We can choose any type of accounts according to our income level except 'Current Account'. 



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