A Bank Account is a Financial Account that is organized by the bank for finance purposes of a customer. It basically is a fund organizer where the customer can withdraw his funds anytime. Banks are considered to be the safest place to deposit the money for future use.
There are four major types of Bank Accounts
- Saving Account
- Current Account
- Fixed Deposit Account
- Recurring Deposit Account
Savings Account
Savings Account is a deposit account where you deposit your money and you get interest in return. This interest can range up to 7% p.a.
Document required to open a Savings Bank Account
- Address proof
- Aadhar card
- PAN card
- Passport size photograph
- Initial deposit amount
Types of Savings Account
- Regular Savings Account
- Salary Based Savings Account
- Savings Accounts for Senior Citizens
- Savings Accounts for Children and Minors
- Exclusive Benefits Accounts for Women
- Zero Balance Savings Account
- Linked Savings Account
- Post Office Savings Account
How to open a Savings Bank Account online?
Step 1- Find the bank you want to open your Account with. Consider the interest rate and the facilities they are providing.
Step 2- Log on to the website of the desired bank and find the create an account tab
Step 3- Fill the online form and select Savings Account and submit it with all the necessary document required uploaded digitally. Some Banks can send an executive to collect physical document and verification too.
Step 4– your details will be verified by the Bank and after verification, your Bank Account can be used.
Current Account
A Current Account is used for the Business purposes since Business have multiple transaction and lot of financial transaction take place so it becomes necessary for a firm to have a Current Account to enjoy the unrestricted business operations, unlike Savings Account which has a lot of restrictions.
Current Account can be opened by any individual, joint partners, any cooperation, private and public limited company.
How to open a Current Bank Account?
Opening a Current Bank Account is similar to opening any bank account only difference is the document required is much more than the Savings Account.
Documents Required
- PAN card
- Partnership Deed
- Certification of Incorporation, Memorandum of Association, Article of Association (in case of companies)
- Address proof of the individual along with partners (if any)
- Address proof of the company, organization.
Fixed Deposit Account
Fixed Deposit is a financial tool used by many people. People with deposit get more interests rate than what saving account offers. It is also known as Bonds and is very safe investments. The interest rate of FD usually varies between 4-7.25%. The tenure of a FD can vary a lot it can be 15, 30 days or can be as high as 10 years. There are lot more benefit of using FD account
Check out a detailed article on Fixed Deposit-
Recurring Deposit account
Recurring Deposit is a special kind of term deposit that offers a monthly deposit till a decided amount of time. This time can be 6 months to 10 years. The depositor enjoys the interest rate of up to 7.29%. This is also a very safest and easiest investment. This kind of investment gives the opportunity to the do savings with regular monthly savings.
Find out more about RD Account by clicking here
