Question

Explain briefly the various types of bank

accounts
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Answer 1

Answer:

Types of Bank Accounts

The different types of bank accounts have been discussed at length in this article. The details and benefits of each type of bank account constitute an important part of the General Awareness syllabus for major Government exams conducted in the country.

One major aspect of the banking industry is the provision of bank accounts. There are various types of bank accounts which can be opened in any Public or Private sector banks.

This topic essentially forms a very important part of the financial and banking awareness section of the various bank exams.

list of bank accounts that :

Savings Account

Current Account

Recurring Deposit Account

Fixed Deposit Account

DEMAT Account

NRI Account

1. Savings Account :

As the name suggests, the savings accounts can be opened by an individual or jointly by two people with an aim to save money.

The main benefit of opening a savings bank account is that the bank pays you interest for opening this type of account with them.

Current account:

2. The second type of bank account is the current bank account. These accounts are not used for the purpose of savings.

3. Recurring Deposit Account :

Recurring Deposit account or RD account is a form of account wherein the account holder needs to deposit a fixed amount every month until it reaches the fixed maturity date.

4. Fixed Deposit Account :

FD or a fixed deposit account is another type of bank account that can be opened in any Public or Private sector bank.

5. DEMAT Account:

Shares and securities which can be held in electronic format constitute the DEMAT account. The DEMAT account also stands for Dematerialized Account.

6. NRI Account:

To fulfil the bank requirements of a Non-Residential Indian or a Person of India Origin, the option of NRI account is available.

Importance of Bank Accounts

To help manage the finances here are some excellent reason to have a bank account-

Importance of Bank Accounts

To help manage the finances here are some excellent reason to have a bank account-

1. Bank accounts offer simplicity for transactions. one can easily withdraw money and make payments if they have a bank account.
2. Having bank accounts offers a safe treasury of your hard-earned money and even if the bank or the unions are close you are sure to get back your money.
3. Most banks and financial institutions offer the account holders free or low-cost services, hence bank accounts are cheaper.
4. It is an easy way to grow money. Most banks offer an interest rate when you put your money in a savings account. The interest will help your money grow over time.
5. It offers easy access to credits. Having a bank account is favourable as banks provide the facility to access credits to its customers for Personal loan, home loan, education loan etc.

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