What are Different Types of Bank Accounts in India?

With the advancement in banking technology, many banks are offering tailor made products to suit individual needs. While accounts may differ from bank to bank their purpose remain the same.

Many banks have different products on the basis of customer's age, income and gender. Here are a few different kind of bank accounts that you can open.

Senior Citizen Savings Bank Account

As the name indicates the Senior Citizen Savings Bank Account, is tailor made for people above the age of 60. There are various benefits attached to it such as preferential rates of FD and comparatively less charges involved with fees and charges.

2) Women Saving Accounts

Many banks have accounts specially designed for women with features catering to womens financial needs, investment and lifestyle needs. Some banks offer higher withdrawal limit with attractive benefits and cash back offers.

3) Normal Saving Accounts

Normal savings account which can be opened by anyone. Average Quarterly balance needs to be maintained for such accounts, failing which banks charge penalty.

Normal savings account comes with features such as passbook, net banking, phone banking, cheque book facility and Debit cards.

4) No-Frill Saving Accounts

Individuals having a no frill account need not maintain minimum balance criteria or very low minimum balance. This was after instruction from the Reserve Bank of India to reach vast sections of the population. However, the no-frills account comes with certain restrictions, which vary from bank to bank.

5) Student Savings Account

Only few banks offer student savings account, with no minimum balance or very less balance to be maintained.

6) Current Account

Current Account is a type of bank account which is relevant to the people who run business. Such accounts can be opened with public or private sector banks. Current accounts is ideal for carrying out day-to-day business transactions.

7) Kids Account

Individual can open separate account for kids. Which will help in saving money and the same can be used for future fee payment or making any further investment.

NRI related Accounts

There are different accounts for non Residents, they are:

NRE Savings Account

In this account rupee denominations can be maintained. The account can opened in the names of two or more non-resident individuals provided all the account holders are persons of Indian nationality or origin.

9) NRO Savings Account

NRO accounts may be opened / maintained also in the form of rupee denomination could be in the form of current, savings, recurring or fixed deposit accounts. The account can be held jointly by residents. You can transfer money into an NRO account from any account - even other individuals residing in India can transfer money into an NR I's NRO account.

10) Salary account

It is a type of bank account, where the salary gets credited. As savings account can be opened by anyone, salary account will be opened by the employer for its employees.

11) Recurring deposit account

Recurring deposit account can be opened by a customer who wants to save a certain amount of money regularly for a specific period and get a higher interest rate. In recurring deposit account, a settled amount of money is deposited for a specific period for every month, and the total amount refunded with interest at the end of the particular fixed time.

The minimum period of deposit is six months and maximum ten years. The interest rates change for different plans based on the amount one saves and the period and also on banks. No withdrawals are allowed from the recurring deposit account.

However, the bank may allow closing the account before the maturity period. These Recurring Deposit Account can be opened in single or joint names. Banks are also providing the Nomination facility to the RD account holders.

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