Give details of different accounts opened in commercial banks for accepting
Or
State the various accounts that can be opened in a commercial bank.
Or
Clearly define saving bank account and current bank account.
Answers
Explanation:
Savings Bank Account :
A savings account is an interest-bearing deposit account held at a bank or other financial institution. Though these accounts typically pay a modest interest rate, their safety and reliability make them a great option for parking cash we want available for short-term needs.
Savings accounts have some limitations on how often we can withdraw funds, but generally offer exceptional flexibility that’s ideal for building an emergency fund, saving for a short-term goal like buying a car or going on vacation, or simply sweeping surplus cash we don’t need in our checking account so it can earn more interest elsewhere.
Savings accounts offer us a place to put our money that is separate from our everyday banking needs, allowing us to stash money for a rainy day or earmark funds to achieve a big savings goal. What’s more, the bank’s security measures, along with federal protection against bank failures provided by the Federal Deposit Insurance Corporation (FDIC), will keep our money safer than it would be somewhere else.
Current Bank Account:
A current account, also known as financial account is a type of deposit account maintained by individuals who carry out significantly higher number of transactions with banks on a regular basis. It is created by the bank on request of the applicant and is made available for frequent or immediate access. Current accounts relate to liquid deposits and it offers a broad range of customized options to aid financial dealings. Current accounts also allows to make payments to creditors through the cheque facility offered by the bank. Generally, current accounts do not provide interests and requires a higher minimum balance when compared to savings account. However, the greatest advantage of current bank account is that, account holders can easily avail overdraft facility up to an agreed limit.