The technology of banking has advanced with time and so, there are many banks that provide
custom-fit bank accounts to suit the customers’ needs. The function of all these different accounts is
the same, though they may alter depending upon the bank. Depending upon the customer’s age,
gender and income, the banks host different types of bank accounts.
This post will definitely help you know more about the different types of Bank Account in India.
Types of Bank Accounts in India:
The following are some of the types of bank accounts that are provided by the banks in India:
There are different types of savings account.
Senior Citizen Savings Bank Account: This type of account is meant for senior citizens. This
account comes with many-sided benefits like preferred rates of fixed deposit and fewer
charges including the fees and charges compared to other accounts.
Women Saving Accounts: These accounts are especially outlined for women, taking into
account their investment, style of living and financial needs. For such accounts, many banks
have higher withdrawal limit with cash back offers and attractive benefits.
Normal Savings Accounts: Anyone can open this account. This account host features like
net banking, phone banking, passbook, cheque book facility and debit card. The main
requirement for this type of account is that average quarterly balance needs to be
maintained, which if not maintained, the bank can charge a penalty.
No-Frill Saving Accounts: This account does not require maintaining any minimum balance
or has very low minimum balance. The Reserve Bank of India started these types of accounts
to cater to the different division of the population. This account comes with some
limitations, which differ from one bank to another.
Student Savings Account: Not all the banks offer Students Savings Account. No minimum
balance or nominal balance needs to be maintained in such account.
This account is similar to the savings account but it is opened by an employer for employees.
Each month the salary of the employee is credited to this account.
This type of account is appropriate for people with a business. These accounts are best for
Limited companies, various institutions (religious, educational, charitable, etc), two or more
people in joint accounts are also suitable for this account.
The current account offers overdraft and internet banking facility. There are no bindings on the number
of times the payments can be done. Funds can be transferred from wherever in the country to the
NRI RELATED ACCOUNTS:
The non-resident Indians have different accounts facility in India like:
NRE Savings Account: This account can be opened by two or more NRIs only if they are of
Indian nationality or origin. Rupee denominations can be maintained in this account.
NRO Savings Account: This account can be in the form of savings, current accounts and
maintain the form of rupee denomination. Two or more NRIs can jointly hold this account.
One can transfer money into NRO account from any account.
Separate accounts for children can be opened by the parents, which would be helpful in saving
money. This money can be used for the future higher education of the child or for any kind of other
RECURRING DEPOSIT ACCOUNT:
Customers can open a recurring deposit account to regularly save a fixed amount of money to get a
better interest rate in a specific period of time. In such accounts, a fixed installment is deposited
every month, and at the end of the fixed term, the customer gets the full amount along with the
interest. The fixed term may vary from six months to ten years. The rate of interest varies with
banks, duration, and installments. One cannot withdraw cash from this account but can close this
account before the maturity.
These accounts can be held by one or more individuals jointly. Nomination facility is being provided
for these accounts.
These are some of the types of bank accounts that are offered by the different Indian banks to their