A Bank Account is an amazing place to save, grow, and invest your money. Today, banks in India provide different accounts to match the varying needs of their customers. Each account has unique characteristics and specific requirements. Here are a few of the accounts offered by the banks in India:
Savings Accounts
It is an account that lets you save your excess funds safely and earn interest on them. There is usually no upper limit on the sum you can save in this account. Banks typically offer different Savings Accounts depending on the age and type of depositor, the purpose, etc. Savings Accounts also offer a range of features, such as Online Banking, access to a Debit Card, and more.
Fixed Deposits
An FD Account is an investment that lets you earn interest at a fixed rate by locking away a sum for a particular period. The FD tenure could range from seven days to 10 years. FDs offer assured returns on the funds you invest.
Current Accounts
Corporations and business owners mainly use a Current Account. When you opt for this account, banks do not pay interest. There is typically no cap on the maximum amount you can hold in this account. Accountholders can also enjoy a high number of daily transactions. An important feature of this account is the overdraft facility.
This feature lets you access a credit facility, even when your account balance is low. You can use the sum you borrow through the overdraft facility to fund your business requirements.
Recurring Deposits
When you opt for an RD Account, it keeps you from locking away a lumpsum amount. Instead, you can invest a smaller amount regularly. RDs let you make regular deposits and earn returns at a particular rate on your investments. Banks usually offer various tenures when opening an RD.
NRI Accounts
Banks offer multiple NRI Accounts to cater to the financial needs of non-resident Indians. These include the following:
- Non-Resident External Accounts
An NRE Account lets you park the money you earn overseas. The sum you deposit is converted into Indian Rupees at the prevailing foreign exchange rates. The funds are then maintained in the account in INR.
- Non-Resident Ordinary Accounts
NRIs can easily park the money they earn in India and overseas in an NRO Account.
- Foreign Currency Non-Resident Deposits
In FCNR Accounts, your funds are maintained in foreign currency denominations. This account works like an FD and lets you earn interest on the deposited sum at a fixed rate.
Conclusion
Now that you know about these accounts offered by banks in India, you can easily choose and open a Bank Account depending on your needs.
