Bank accounts in India

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It doesn't matter if you are a housewife, a college student or a business owner, or a home-based Indian, having a bank account would be impossible. Banks offer different types of accounts depending on where they are located, their purpose and frequency of transactions. There are many bank accounts available to choose from. Here's a list of some the most popular bank accounts.

Types of bank accounts available in India.

1. Current account
Current accounts are deposit accounts for traders, business owners, or entrepreneurs who require payments to be made and received more frequently than other people. Current accounts have more liquid deposits and can handle more transactions per day. Current accounts permit overdraft, which is the ability to withdraw more than is currently available. These accounts are also zero-interest bearing, which is a big difference from savings accounts that earn interest. To be able operate your current accounts; you must maintain a minimum amount.

2. Savings account
A savings bank account can be described as a regular deposit account that earns a minimum interest rate. The monthly limit on the transactions you can make is set at 1. There are many options available to banks. Savings accounts Based on the depositor's type, product features, age, or purpose of account holding, etc.
There are savings accounts for children, seniors, women, institutions, savings accounts and family savings accounts.
There are many savings products that you can choose from. There are both zero-balance savings account options and advanced accounts with features such as auto sweep, debit cards and bill payments.
Cross-product benefits are when you have a savings bank account and can get special offers on opening another account, such as a demat.

3. Salary account
There are many types of Bank accounts your bank and employer have a tie-up that opens your salary account. This account is where all employees' salaries are credited at the start of each pay cycle. Based on their preferences, employees can choose the type of salary account they prefer. Where you have a bank account for your salary, the bank also has reimbursement accounts. This is where your reimbursements and allowances are credited.

4. Fixed Deposit account
Fixed deposit accounts (FD) allow you to earn a fixed interest rate for keeping a set amount of money in a locked account for a specific time. This is until the FD matures. Fixed deposits (FDs) have a maturity period of 7 days to 10 years. The tenure of an FD will affect the rate of interest earned. Generally speaking, an FD cannot be withdrawn before it matures. Some banks allow you to withdraw money before it matures. In this case, however, the interest rate that you receive is lower.

5. Recurring Deposit account
Fixed tenure is required for recurring deposits (RD). To earn interest, you must invest a set amount of money each month or every quarter. Unlike FDs where you must make a large lump sum deposit, here the amount you have to invest is smaller and more frequent than FDs. The tenure of the RD cannot be changed, nor can the amount that is to be invested each quarter. You can't change the tenure of RDs or the amount to be invested each month. If you withdraw prematurely, you will face a penalty. An RD's maturity period could be anywhere from six months to ten years.

6. NRI Accounts
There are Different types of bank accounts for Indians and Indian-origin persons living abroad. These accounts are known as overseas accounts. These accounts include both savings accounts and fixed deposits. They can be either NRO (non-resident ordinary) or NRE (non-resident external). Non-resident banks also offer fixed deposit accounts in foreign currencies. Let's quickly look at the Different types of bank accounts for NRIs-
a) Non Resident Ordinary savings accounts or fixed deposits accounts
NRO accounts can be described as rupee accounts. These accounts allow NRIs to deposit money, often in foreign currency. It is then converted to INR at the current exchange rate. NRIs have the option to save money earned overseas or in India in NRO bank accounts. NRO accounts allow for payments such as rent, maturities and pension to be sent overseas. These deposit accounts are subject to tax on the income earned.
b) Fixed deposit accounts and savings accounts for non-residents external (NRE)
NRE deposit accounts look similar to NRO accounts, and funds are kept in INR. All money that is deposited in these accounts will be converted to INR at the prevailing exchange rate. These accounts can only be used to store your earnings earned abroad. Both the principal and interest funds can be transferred. The interest earned from these deposit accounts is not subject to Indian tax.
C) Foreign currency account non-resident (FCNR)
FCNR accounts can be maintained in foreign currency, unlike the two other types of bank accounts. These accounts can be transferred, and the principal and interest are transferable. However, Indian tax does not apply to interest earned.

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