Question

Types of bank accounts and deposits in India.

Answer 1

For various uses, Indian banks offer a variety of account kinds. Savings accounts, current accounts, salary accounts, and NRI accounts are the various types of bank accounts that Indian banks offer.

1. Current Bank Account

Any firm or entrepreneur that does numerous transactions each day must have a current account. A current bank account typically has a high minimum balance requirement and pays no interest.

2. Savings Bank Account

The most typical kind of bank account is this one. To save money, one can open a savings account on their own or jointly with another person. One can obtain interest by placing money in a savings account.

3. Salary Account

According to the agreement between the bank and the employer, a salary account must be opened. An account to which the company credits the salary each month is called a salary account.

4. Fixed Deposit Account 

All public and private banks in India provide the option of a fixed deposit. Among investors who want to park their extra cash for a predefined interest rate and prefixed maturity, fixed deposits are a highly common investment strategy.

5. Repeated Deposit Account 

Customers in India public and private banks have access to recurring deposit accounts. An investor can deposit a fixed amount to his account on a set date for a predetermined interest rate and maturity using an RD account.

6. Non-Resident Ordinary (NRO) Savings Accounts 

An NRI account type called a Non-Resident Ordinary (NRO) savings account aids in managing the money that they make in India. The revenue may come from dividends, rent, interest, or other sources.

7. Non-Resident Ordinary (NRO) Fixed Deposits Accounts 

With the use of an NRO account, one may invest in NRO fixed deposits. Investments in NRO fixed deposits are open to all NRIs, including Persons of Indian Origin (PIO) and Overseas Indian Citizens (OCI).

8. Non-Resident External (NRE) Savings Accounts

NRIs can use a Non-Resident External (NRE) Savings Account to send their foreign currency profits to India. NRIs can deposit their foreign currency earnings into NRE accounts in India. NRIs are able to open NRE savings accounts on their own or in collaboration with another NRI.

9. Non-Resident External (NRE) Fixed Deposits Accounts 

NRIs who earn foreign currency have access to Non-Resident External (NRE) Fixed Deposit Accounts as investment choices. When purchasing NRE FDs, foreign currency is used to make the initial deposit, which is then automatically converted to Indian rupees.

10. Foreign currency Non-Residents (FCNR) Account

Foreign money A term deposit account that is kept in foreign currency is known as a Non-Resident (FCNR) Account. Only one of the nine currencies that the RBI permits can be used to open this type of account.