Type of Bank Accounts

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  • Topic: Bank, Cheque, Deposit account
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  • Published : May 1, 2013
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Survey of Various types of Bank Accounts, rate of interest offered

Mr. Pinto (name changed on request) of Axis Bank Limited of Nerul Branch was very co-operative when I visited their branch and introduced myself as a 10th Std. student of Ryan International School, Nerul and inform my purpose of visit of carrying out a survey on various types of bank accounts available and commonly used in India.

He offered me a place to sit and called for water and request to give him some time to complete his urgent in-hand work. Since the day was Saturday hence visibly the no. of public was less. After half an hour, he turned up, excuse for keep me waiting and then first go thru the paper containing Project Topics. After going thru the entire paper he then greets me for taking the project sincerely and then started narrating the meaning of Bank account, type of Bank Accounts and interest rate offered on various accounts.

A bank account is a financial account between a bank and its customer. A bank account can be a deposit account, current account, loan account or any other type of account offered by a bank. Traditionally banks in India have four types of deposit accounts, namely Current Accounts, Saving Banking Accounts, Recurring Deposits and, Fixed Deposits. However, in recent years, due to ever increasing competition, some banks have introduced new products, which combine the features of above two or more types of deposit accounts, of which, some of them are as under:

1.Savings Account
2.Current Account
3.Recurring Deposit Account
4. Fixed Deposit Account
5.Other Accounts – Corporate Banking
Loan Account
Overdraft / Cash Credit
Demat Account
EEFC
Nostro & Vostro Account

1.Savings Bank Account

These deposits accounts are one of the most popular deposits for individual accounts. These accounts not only provide cheque facility but also have lot of flexibility for deposits and withdrawal of funds from the account. Most of the banks have rules for the maximum number of withdrawals in a period and the maximum amount of withdrawal. Varying Rate of Interest - Till 24/10/2011, the interest on Saving Bank Accounts was regulated by RBI and it was fixed at 4.00% on daily balance basis. However, wef 25th October, 2011, RBI has deregulated Saving Fund account interest rates and now banks are free to decide the same within certain conditions imposed by RBI. No Frill account: Under directions of RBI, now banks are also required to open no frill accounts - this term is used for accounts which do not have any minimum balance requirements. Although Public Sector Banks still pay only 4% rate of interest, some private banks like Kotak Bank and Yes Bank pay between 6% and 7% on such deposits. The interest earned upto Rs 10,000 in a financial year on Saving Bank accounts is exempted from tax.

Types of Savings Account offered by Axis Bank:

(1) Axis Bank's EasyAccess Savings Account. The account is an endeavor by the Bank to understand the consumers' needs and redefine banking to suit your requirements for a truly comfortable banking experience. EasyAccess Savings Account gives you instant access to your money anywhere, anytime. Possessing a range of unmatched features, it has been devised to better suit the convenience of our eclectic client base. You can avail of all these services with a minimum quarterly average balance of Rs.10,000 in metro or urban centers, Rs.5,000 in semi urban centers and Rs.2,500 in rural centers. At Par Cheque Book

Debit Card
Anywhere Banking
Telebanking
Internet Banking
Free SMS Banking
Account Statement
Quarterly Interest
Free monthly e-statement

(2) The Prime Savings Account is the account for you if you want extras on your account. This account comes with enhanced access and higher transaction limits. 4% rate of interest on daily balances, paid quarterly

Minimum opening deposit of Rs.25,000 in metros^
Access to over 10,000...
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