The different types of bank accounts are as follows -
Savings Account – This bank account can get opened individually or jointly to save money. There is no limit to the number of times you can deposit money into this account. The most important feature of this bank account is that it pays interest on the deposit in the account that ranges from 4-7% and varies with every bank. Most banks also have a minimum balance requirement for a savings account. However, some options like the Axis Bank zero balance account or Axis Bank savings account can get opened without any minimum balance (though they come with added restrictions). You can instead go for an online bank account opening with zero balance, no limitations and additional benefits with a digital service provider like North Loop.
Current Account – This bank account usually gets opened by businessmen, associations, institutions or companies and is used for business-related transactions. These accounts offer flexibility and do not have any limitation on the number of times that money can get deposited or withdrawn from them. Internet banking and overdraft facility are also available with current accounts. However, no interest gets paid on the deposits maintained in this bank account.
Recurring Deposit Account – In this type of bank account, periodic or monthly deposits need to get added until it reaches a fixed maturity date. The amount of deposit can be as low as Rs.50 per month and varies from bank to bank. Nomination facility is also available with this account along with the premature withdrawal of funds (after payment of a penalty). The interest rate offered on this type of bank account varies with every bank.
Fixed Deposit Account – Fixed deposit accounts
require the deposit of a fixed sum of amount for a specific tenure. The amount that gets deposited can be withdrawn only after that tenure and earns a fixed rate of interest
that is usually higher from the interest earned in a savings account. Full repayment of the maturity amount in a fixed deposit account is also allowed but only after payment of a penalty. You can open a fixed deposit bank account with North Loop
and enjoy a high-interest rate of 7.75% on your FD
DEMAT Account – This bank account gets used to keep shares and securities in an electronic format. It helps to facilitate easy trade of bonds and shares and allows the transfer of securities with reduced paperwork. KYC compliance is mandatory for opening this type of bank account. NRI Account
– This type of bank account can get opened by NRIs and are of the following three types: NRO (Non-Resident Ordinary), NRE (Non-Resident External)
or FCNR (Foreign Currency Non-Resident) Account
. While the NRO account gets used to deposit the income earned in India (such as rental income from property in India), the NRE and FCNR accounts get used for depositing money earned abroad in Indian and foreign currency respectively. To read about the 10 best banks for NRE/NRO accounts in India, click here