Different types of bank accounts in India that you need to know before an investment
In the present economic scenario, when inflation is on a hike, your hard-earned money matters a lot to you. So, you always have the thinking about where to invest in getting the maximum benefit of your money. In the 21st century, no matter if you are a housewife or a businessman, everyone has their own bank accounts, based on the purpose, frequency of the transactions, location and many more things. Following these criteria, there are a few types of accounts you can think of. In this article, we would like to answer all your queries by mentioning the different types of bank accounts so that your investments can become a bit easier than before. So, let’s look into the types –
Savings account, the most common one
A savings bank account is basically a regular deposit account where the interest rate is the lowest. Here the number of transactions is fixed, but you can withdraw anytime the amount you need, but your account should have the minimum balance, which will make the account alive. There is also the concept of a zero balance account where your account can be open without any amount. This account will provide you with some features like auto sweep, debit cards, bill payments and cross-product benefits. You can have a special offer on opening a second account at the bank where you have the first account.
It is basically the traders’ account. Businessmen and entrepreneurs who need to make more transactions than the common people use this account to hold liquid deposits with no limit. Here, a huge transaction happens per day, and it also allows the account holders to withdraw more than the available balance of the account. But, unlike a savings account, you don’t earn any interest, and the most important part is that you need to maintain the minimum balance to operate the account.
Fixed deposit account
The main purpose of this account is to save your funds in order to earn a good rate of interest. In a fixed deposit account, you do fix a certain sum of money for a fixed time, and after the maturity, you can withdraw the amount along with its interest. The range is between seven to ten years, but the biggest point is that you can’t withdraw the money before it’s matured. Some banks may offer you the withdrawal facility, but in that case, the interest rate will be lower.
However, these three are the most used accounts for Indians. So, invest your money carefully to earn the maximum benefit from it.