Types Of Bank Account One Should Know About

Multiple types of bank accounts are designed to meet certain purposes. It’s a wise choice to put money into the right type of account based on your financial goals so you can access the right tools for spending and saving. Opening a bank account is now easy.

 Today if you search “Transfer Funds” you will land on banking apps that can help you open your related bank account. This helps you to manage time and simple banking processes like transactions. But knowing which is best for you will depend on many factors. Let’s list down the type of banking accounts you can choose from.

  1. Savings Account:
    The very common and standard kind of account many people start with is the Savings Account. The benefit attached to savings accounts is the interest rate and the money growth. This growth eventually helps to save for the future. Children might create a savings account alongside a parent to get into the habit of saving. Teenagers can also create accounts to save money earned from their first job or domestic duties and manage their finances while attending college. An account holder can have 24×7 access to one’s Savings Account via Net Banking or our mobile app.

  2. Current account:
    Current accounts are typically used for commercial transactions in which funds are routinely moved across bank accounts by companies. The current Accounts also provide an option to the customer for an overdraft facility. This overdraft facility allows customers to withdraw more money from their accounts than they have.

  3. Salary Account:
    Banks create these accounts at the request of large enterprises and businesses that pay their employees through banks. Each employee can have a salary account into which their employer deposits their monthly pay. They can enjoy benefits like instant alerts and zero-balance account advantage with a Salary Account.

  4. NRI account:
    Non-residents of India, who still want to manage banking statements in India can open an NRI bank account. There are three types of NRI accounts, they are Non-Resident Ordinary Account, Non-Resident External (NRE) Savings & Foreign Currency Non-Residential Account (FCNR). Customers can get good interest rates, 24×7 Net Banking access through these accounts as well.

  5. Recurring Deposit accounts:
    These accounts are created as deposit accounts by customers who want to earn interest on their money. Popularly called RDs, these instruments are the easiest means to generate an income higher than that given by savings accounts.

The kinds of accounts have been standard to date. ‘In the last few years, technological additions of UPI and Net Banking were added. UPI is responsible for changing the way we look at banking today. With the introduction of technology in the banking sector, a rise in the number of bank users was observed.

Today if we search “UPI transfer” we will land at the end of the number of results that are co-related to standard banking and technology. Today, we have all banks running applications that involve UPI and involve basic payment facilities like bill payouts, flight booking, shopping coupons, etc.

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