There are many types of bank accounts that we can create for different purposes. To claim the benefits of the different accounts, we need to understand how they differ from each other. So let’s look at the various accounts that we can have in the bank.
Bank Accounts In India
This account can be created for any individual who is a resident of India. It can be held as a single account and as a joint account by two or more individuals. The depositor can avail modest options of credit. The account holder can also avail two checkbooks for free per year along with internet banking options, balance inquiry, NEFT, Mobile recharge, bill payments are provided via mobile phones. Students also can avail of this account with zero balance options by submitting necessary documents.
This account can be created for any resident of India individually or as a joint account, limited company, associations, educational institutions, etc., can avail these accounts. The account holder can make unlimited payments and remittance can be received from anyone. This account has the special benefits of availing of overdraft and Internet facilities.
FD (Fixed Deposit) Account
The bank gives two types of FD Accounts. If the FD ranges from 7days to 179 days it is called as ‘Short Deposit’. A minimum of Rs 5 lakh can be deposited in this scheme. The other FD option that the bank gives is the Fixed Deposit Receipt (FDR). FDR can be availed by an individual or a group of people such as Associations, clubs, societies, etc. A minimum of Rs. 10,000/- is a must for metro cities and urban branches. For rural, semi-urban and senior citizens a minimum deposit of Rs. 5000/- needs to be made. The deposited money can be asked for repayment even before the maturity date. The interest rates on your deposits vary from bank to bank and the tenure of your deposits.
The Demat Accounts can be created to make your transactions on shares less stressful. This account can be held by any individual Resident, NRI, Foreign national, Foreign National investor, Mutual Funds, Financial Institutions, Banks, etc. To open this account, the individual needs to fill the details on a form along with a photograph and photocopy of their Government ID proof. After the processing is done the Demat account number will be provided to you.
The banks also provide an NRI account for NRIs. The various bank accounts have their benefits. So if you want to only use it for personal transactions you can go for a savings bank account. If you are a business person, you can go for a current account, wherein you can make unlimited transactions and avail overdraft facilities.