alexa

Search in Indianmoney's WealthPedia

Home Articles 5 Types Of Bank Accounts : All You Need To Know

5 Types Of Bank Accounts : All You Need To Know

IndianMoney.com Research Team | Posted On Tuesday, March 12,2019, 02:48 PM

5.0 / 5 based on 1 User Reviews

5 Types Of Bank Accounts : All You Need To Know

 

 

A bank account is a financial account maintained by a bank or an NBFC for you or a customer. Bank account can be a deposit account, credit account, current account or any other account offered by a bank or a financial institution which represents funds that a customer has entrusted to a bank or financial institution.

A bank account can also be a loan account or a credit account. In this type of account, the customers owe money to the bank or financial institution.

Want to know more on FDs? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

5 Types Of Bank Accounts: All You Need To Know 

Below mentioned are the basics of bank accounts:

Checking Account

A basic checking account is also known as a transactional account. Checking accounts are designed for daily purchases. Money is deposited to checking accounts with a view on spending rather than saving. Checking accounts offer cheques and Automated Teller Machines or ATM cards to facilitate faster and hassle free withdrawal for spending.

Checking accounts don’t offer annual interest, unlike other accounts like a savings bank account. Checking accounts have overdraft fees and you must watch out for this. Few banks and financial institutions allow you to issue a certain number of cheques in a month and you must clarify on this number with the bank. Read and understand the terms and conditions before opening a checking account with the bank. 

SEE ALSO:  Types of Bank Account

Savings Account

As the name suggests, the savings accounts are designed to save money. Money saved in a savings account earns interest on an annual basis. Interest offered on the savings account varies across banks.

Few banks mandate customers maintain a certain amount as minimum balance at all times in their savings account. Failing to do so, would attract fines or penalties.

The table below shows the minimum balance and interest offered on savings account by various banks:

Bank Minimum Balance required (Rs) Rate of Interest (p.a.)
Allahabad Bank 1000 3.50%-4%
Andhra Bank 0/5//100/1000 3.50%-4%
Axis Bank 0/10000/25000/100000/ 3.50%-4%
Bank of baroda 0/5/1000 3.50%-4%
Bank of India 500/5000/10000/20000/100000 3.50%-4%
Bandhan bank 0/2000/5000/25000/100000 4%-6.55%
Bank of Maharashtra 1000 0.04
Canara Bank 500/1000 0.04
Central Bank of India 50 3.50%-4%
Citibank 200000/ 0.035
Corporation Bank 0/250/500/2500/15000/100000 3.50%-4%
Dena Bank 0 0.04
Dhanlaxmi Bank 0/5/1000/5000/10000/25000 4%-6.5%
Digibank 0 4%-7%
Federal Bank 0 3.50%-6.51%
HDFC Bank 2500/5000/10000/25000 3.50%-4%
ICICI Bank 0/1000/2000/2500/5000/10000 3.50%-4%
IDBI Bank 500/2500/5000 3.50%-4%
IDFC Bank 25000 0.04
Indian Bank 250/500/1000 0.04
Indian Overseas Bank 500/1000 0.04
IndusInd Bank 0/10000/25000/2500000 4%-6%
Jammu and Kashmir Bank 0/500/1000 0.035
Karnataka Bank 0/500/1000/2000 3.50%-4%
Kotak Bank 0/2000/3000/5000/10000/20000 5-6%
Lakshmi Vilas Bank 1000/3000/5000 4%-6.50%
Oriental Bank of Commerce 0/500/1000 3.50%-4%
Punjab National Bank 500/1000/2000/50000 3.50%-4%
Punjab & Sind Bank 500/1000 3.50%-4%
South Indian Bank 0/2500/5000 0.04
State Bank of India (SBI) 0/1000/2000/25000 3.50%-4%
Syndicate Bank 0/100/500/1000 3.50%-4%
UCO Bank 0/100/250/500/1000/1500 3.50%-4%
Union Bank of India 0/20/100/250/500/1000 3.50%-4%
United Bank of India 0/50/100/500 3.50%-4%
Vijaya Bank 500/1000/2000 3.50%-4%
YES Bank 0 5%-6.25%

Certificate Of Deposit (CD):

A certificate of deposit account CD, allows you save at a defined interest rate over a specified period of time. CD might seem to work on similar lines of a savings account, but the difference is you don’t have access to the funds saved in a CD account and hence depositing in CD offers a higher interest rate than a savings account.

CD duration can vary from a month to several years. Premature withdrawals done from a CD attracts fines and penalties.

Money Market Account

These accounts are similar to a savings account. You must maintain a certain amount of money in the account at all times, failing to do so would result in fines and penalties. A major difference between money market account and a savings bank account is that the interest offered on a money market account fluctuates on the basis of financial markets. Few banks allow withdrawal from these accounts through cheques. Money market accounts offer higher rate of interest than a savings bank account.

Fixed Deposit Accounts

A fixed deposit is a financial instrument offered by banks and non banking financial companies NBFCs, that offer investors a much higher interest rate than a normal savings bank account over a fixed period of time. Investing in a FD may or may not require opening a separate account.

Premature withdrawals have fines and penalties. The rate of interest offered on fixed deposits varies across banks and NBFCs. Senior citizens earn a slightly higher interest.

The below table shows the rate of interest offered on fixed deposits by various banks and NBFCs:

Bank

FD Rate of Interest

Senior Citizen FD Rates

SBI Fixed Deposit

5.75% - 6.85%

6.25% - 7.35%

HDFC Bank Fixed Deposit

3.50% - 7.40%

4.00% - 7.90%

ICICI Bank Fixed Deposit

4.00% - 7.50%

4.50% - 8.00%

Axis Bank

3.50% - 7.55%

3.50% - 8.50%

Kotak Bank

3.50% - 7.30%

4.00% - 7.80%

IDFC Bank

4.00% - 8.25%

4.50% - 8.75%

Bank of Baroda

4.50% - 6.85%

5.00% - 7.35%

Citibank

3.00% - 7.00%

3.50% - 7.50%

IDBI Bank

5.75% - 7.25%

5.75% - 7.75%

Indian Bank

4.50% - 6.75%

5.00% - 7.25%

Indian Overseas Bank

4.50% - 6.80%

5.00% - 7.30%

OBC

5.75% - 7.00%

-

PNB

5.75% - 6.75%

6.25% - 7.25%

HDFC

7.70% - 7.70%

7.95% - 7.95%

PNB Housing Finance

8.25% - 8.45%

8.50% - 8.70%

Allahabad Bank

5.00% - 6.75%

-

Andhra Bank

4.00% - 6.80%

% - 7.30%

Bank of India

5.25% - 6.70%

5.25% - 7.20%

Bank of Maharashtra

4.25% - 6.60%

4.25% - 7.10%

Canara Bank

5.75% - 7.00%

6.25% - 7.50%

Central Bank of India

4.80% - 6.65%

5.30% - 7.15%

Dena Bank

4.00% - 6.75%

4.50% - 7.25%

Punjab and Sind Bank

4.00% - 7.00%

4.00% - 7.50%

UCO Bank

4.50% - 6.60%

-

Union Bank of India

5.00% - 6.75%

5.50% - 7.25%

Vijaya Bank

5.00% - 6.80%

5.50% - 7.30%

United Bank of India

4.00% - 6.50%

4.00% - 6.50%

RBL Bank

5.00% - 8.05%

5.50% - 8.55%

Standard Chartered Bank

4.25% - 7.50%

5.00% - 8.00%

Corporation Bank

4.50% - 7.00%

5.00% - 7.50%

Jammu And Kashmir Bank

5.00% - 7.30%

5.50% - 7.80%

Yes Bank

5.00% - 7.25%

5.50% - 7.98%

Federal Bank

3.50% - 7.30%

4.00% - 7.80%

Bandhan Bank

3.50% - 7.65%

4.25% - 8.40%

HSBC Bank

3.15% - 6.75%

3.65% - 7.25%

South Indian Bank

4.00% - 7.60%

4.50% - 8.10%

IndusInd Bank

3.75% - 8.00%

4.25% - 8.50%

DCB Bank

4.00% - 8.05%

4.50% - 8.75%

Karur Vysya Bank

5.00% - 7.25%

5.00% - 7.75%

DHFL

8.25% - 9.00%

8.65% - 9.40%

LIC Housing Finance

8.15% - 8.30%

8.40% - 8.55%

Bajaj Finserv

8.00% - 8.75%

8.35% - 9.10%

Syndicate Bank

4.75% - 7.05%

5.25% - 7.55%

DBS Bank

4.00% - 7.50%

4.00% - 7.50%

Karnataka Bank

3.50% - 7.50%

4.00% - 8.00%

Dhan Laxmi Bank

4.00% - 7.25%

4.00% - 7.75%

Lakshmi Vilas Bank

4.50% - 8.00%

4.50% - 8.60%

You May Also Watch

Iframe Content

Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.

Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.

Be Wise, Get Rich.

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
CIBIL Meter
Get It now!
Attention!

This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.