Types of Bank Accounts: Explained In Details

This topic is important for bank exams, as generally many questions are asked in bank exams and interview on bank accounts like what are different types of accounts in the bank, what is the difference between a current account and saving the account.so understanding this topic is very important.

Various types of bank accounts

1. Saving Account
2. Current Account
3. Fixed Deposit Account
4. Demat Account

1) Savings Account

• Any resident individual- single accounts, two or more individuals in joint accounts, associations, clubs etc., are eligible for this account.
• Modest credit option available to the depositor.
• Two free cheque books will be issued per year.
• Internet banking facility will be provided without any charge (depends upon bank).
• Balance enquiry, neft, bill payment, mobile recharge etc., are provided through mobile phones.
• Students can open this account with zero balance by providing the required documents.

2) Current Account

• Any resident individual- single accounts, two or more individuals in joint accounts, associations, limited companies, religious institutions, educational institutions, charitable institutions, clubs etc., are eligible for this account.
• Payments can be done unlimited number of times.
• Funds can be remitted from any part of the country to the corresponding account.
• Overdraft facility will be available.

3) Fixed Deposit Account

• A fix deposit is a fixed-term deposit held at a financial institution. 
• They are generally short-term deposits with maturities ranging anywhere from a month to a few years. 
• When a term deposit is purchased, the client understands that the money can only be withdrawn after the term has ended or by giving a predetermined number of days' notice.

4) DEMAT Account

• Used to conduct stress-free transactions on the shares.
• An individual, foreign institutional investor, foreign national, corporate, trusts, clearing houses, financial institution, clearing member, mutual funds, banks and other depository account.
• For opening this account, an individual has to fill a form, submit a photo of the applicant along with a photocopy of citizenship / voter id/ passport/ driving license & demat account number will be provided to the applicant immediately after the completion of processing of the application.
• Facilities provided under this account are- opening & maintaining of demat accounts, dematerialization, rematerialization, purchases, sales, pledging & unplugging, safe custody.