Thursday, 27 March 2014

Types of accounts in banks

Savings bank account [SB a/c]: The main purpose of SB a/c is to encourage small savings from the public. Interest paid on SB a/c is 4 percent.

Any individual can open SB a/c. An Indian residing at abroad can open a NRI a/c. NRI represents non-resident Indians.

Current account: It’s a running and active account. No interest is paid on current a/c.
Current accounts can be opened on firm names. Even individuals can also open current a/cs. But on firm names you cannot open SB a/c.

Fixed Deposit account: Amount is kept for a fixed period. Higher rate of interest will be paid on this a/c.

Recurring deposit [RD a/c]: A fixed amount can be deposited in monthly installments. Interest rate is same as fixed deposits.

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