Kinds of Bank Accounts

Banks offer scopes for opening various kinds of accounts according to their clients' demand. Bank accounts can be categorized into the following types based on people's occupation, need, time, location and demand:

1) Current Account

2) Savings Account

3) Fixed Deposit

In addition to the above three accounts, banks offer following more types of accounts

4) School Saving Account

5) Insurance Saving Account

6) Foreign Savings Account

7) Deposit Pension Scheme Account

8) Loan Deposit Account

9) Resident Foreign Currency Deposit Account (RFCD)

1) Current Account: The kind of account that facilitates a client to deposit and withdraw money whenever a client wants is called a current account. This type of account is more suitable for business persons and usually no interest is offered for such an account. More than deposited amount of money can be withdraw in such in account.

2) Saving Accounts: The account in which money can be deposited any time, but withdrawn twice a week or in such regulated frequency is called savings account. Usually fixed income people who are not involved in business open such accounts. A small rate of interest is offered for such accounts. However, now a days some banks don't impose any restrictions in frequency of depositing or withdrawing money.

3) Fixed Deposit: When a bank account is opened for a certain period of time, it is called fixed deposit. A fixed deposit account can usually be opened for a period of one month, three months, six months, one year, two years, five years, etc. In such an account, high rates of interest is offered but a client cannot withdraw his/her money. However, the client may be allowed to withdraw money before the period ends if urgently needed, but in such a situation he/she will not be able to get any interest.

4) School Savings Account: Such an account is opened to create a tendency of savings among school students. The students deposit their savings in this kind of account.

5) Insurance Savings Account: Both life insurance and current account facilities are offered for such an account. A depositor is required to save a certain amount of money in this kind of account.

6) Foreign Exchange Savings Account: Any person or organization earning foreign currency can open such an account. Only foreign exchange is transacted in this kind of account.

7) Deposit Pension Scheme Account: A certain amount of money is deposited every month within a certain time-frame. Money is thus saved for a certain period and at the end of this period the total savings is paid back along with a certain percentage of interest.

8) Loan Deposit Accounts: A business person, industrialist or any other borrower is given loan through cheque to transforming client's accounts for which he/she needs to open an account in the borrowing bank. The borrower can withdraw money according to his requirement from that account. Thus the deposit and credit are circulated.

9) Resident Foreign Currency Deposit Account: This kind of account is customized for those citizens of a country who regularly travel abroad. This account is helpful when the stipulated quota of using foreign currency is not enough during overseas travel. Usually exporters and importers as well as people involved in business relation or consultation services with foreign companies take this service.