1. Saving Account - Saving accounts are opened to encourage the people to save money and collect their savings. The saving account holder is allowed to withdraw money from the account as and when required. The interest on Saving Bank Accounts was fixed by RBI and it was fixed at 4.00% on daily balance basis. RBI has deregulated Saving Fund account interest rates and now banks are free to decide the same within certain conditions imposed by RBI.
2. Current Account - Current Accounts are basically meant for businessmen for more number of transactions.
Features of Current Accounts –
(1) The main objective of Current Account holders in opening these account is to enable them (mostly businessmen) to
conduct their business transactions smoothly.
(2) There are no restrictions on the number of times deposit in cash / cheque can be made or the amount of such deposits;
(3) Usually banks do not pay any interest on such current accounts.
(4) The current accounts do not have any fixed maturity as these are on continuous basis accounts.
(5) Cheque book facility is provided and the account holder can deposit all types of the cheques and drafts in their name or
endorsed in their favor by third parties.
3. Recurring Deposit Account: Recurring Deposit is a special kind of Term Deposit offered by banks in India known as RD accounts which help monthly income people to deposit a fixed amount every month into their Recurring
Deposit account and earn interest at a healthy rate more than savings deposit.
Features of RD Accounts –
1. Recurring Deposit accounts are normally allowed for maturities ranging from 6 months to 120 months
2. Interest is compounded on quarterly basis in recurring deposits.
4. Fixed Deposit Account (FD) - The account which is opened for a particular fixed period (time) by depositing particular amount (money) is known as Fixed (Term) Deposit Account. The term 'fixed deposit' means that the deposit is fixed and is repayable only after a specific period is over.
5.Main Points of BSBDA-Small Accounts:
i. In BSBDA, banks are required to provide free of charge minimum 4 withdrawals, through ATM.
ii. Total credits in such accounts should not exceed 1 lakh rupees in a year.
iii. Maximum balance in the account should not exceed 50,000 Rs at any time.
iv. The total of debits by way of cash withdrawals and transfers will not exceed 10,000 rupees in a month.
v. Foreign remittances cannot be credited to Small Accounts without completing normal KYC formalities.
v. Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person
provides proof of having applied for an Officially Valid Document.
6.NOSTRO Account: A Nostro account is maintained by an Indian Bank in the foreign countries.
7. VOSTRO Account: A Vostro account is maintained by a foreign bank in India with their corresponding bank.
2. Current Account - Current Accounts are basically meant for businessmen for more number of transactions.
Features of Current Accounts –
(1) The main objective of Current Account holders in opening these account is to enable them (mostly businessmen) to
conduct their business transactions smoothly.
(2) There are no restrictions on the number of times deposit in cash / cheque can be made or the amount of such deposits;
(3) Usually banks do not pay any interest on such current accounts.
(4) The current accounts do not have any fixed maturity as these are on continuous basis accounts.
(5) Cheque book facility is provided and the account holder can deposit all types of the cheques and drafts in their name or
endorsed in their favor by third parties.
3. Recurring Deposit Account: Recurring Deposit is a special kind of Term Deposit offered by banks in India known as RD accounts which help monthly income people to deposit a fixed amount every month into their Recurring
Deposit account and earn interest at a healthy rate more than savings deposit.
Features of RD Accounts –
1. Recurring Deposit accounts are normally allowed for maturities ranging from 6 months to 120 months
2. Interest is compounded on quarterly basis in recurring deposits.
4. Fixed Deposit Account (FD) - The account which is opened for a particular fixed period (time) by depositing particular amount (money) is known as Fixed (Term) Deposit Account. The term 'fixed deposit' means that the deposit is fixed and is repayable only after a specific period is over.
5.Main Points of BSBDA-Small Accounts:
i. In BSBDA, banks are required to provide free of charge minimum 4 withdrawals, through ATM.
ii. Total credits in such accounts should not exceed 1 lakh rupees in a year.
iii. Maximum balance in the account should not exceed 50,000 Rs at any time.
iv. The total of debits by way of cash withdrawals and transfers will not exceed 10,000 rupees in a month.
v. Foreign remittances cannot be credited to Small Accounts without completing normal KYC formalities.
v. Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person
provides proof of having applied for an Officially Valid Document.
6.NOSTRO Account: A Nostro account is maintained by an Indian Bank in the foreign countries.
7. VOSTRO Account: A Vostro account is maintained by a foreign bank in India with their corresponding bank.
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