How to Choose the Right Bank Account for Your Needs

In the digital age, where most transactions occur digitally, having a personal account paramount is imperative. Living without one would be impossible. We all, however, have different circumstances and different needs that must be met. The same type of account is not enough for all our varied needs. Hence, here are some types of bank accounts available for you to choose from to satisfy your diverse requirements.

1. Current Account-

In general, current accounts are for businessmen, retailers, and entrepreneurs who conduct heavy transactions constantly. You can create this kind of account through net banking and mobile banking. Using this type of account, you can make unlimited transactions per day and liquidate more deposits. You can also withdraw more than the available funds from current accounts, which gives a feeling of financial security. But, with a current account, you can not earn interest on your deposit amount and have to maintain a minimum balance.

2. Savings account

You can deposit regularly into this type of account and earn substantial interest rates. Internet banking and mobile banking makes it convenient to access your bank account. The number of transactions you can make with a savings account is limited. The structure, features, age, and purpose of saving accounts can be classified. Banks offer a wide range of regular savings accounts to suit all needs, including those for children, seniors, women, families, and organizations.

Among the savings products that banks offer are zero balance savings accounts, auto swipes, bill payments, and cross-product benefits. It will be possible for you to open a second Demat account with this benefit.

3. Salaried account

In such types of accounts, the bank and the employees are tied together. Your salary is deposited in your account at the beginning of every pay cycle. It makes the entire company’s employee transactions very smooth and transparent. You can easily choose from a variety of options. You can also hold an account to make your reimbursement and allowances transactions more seamless.

4. Fixed Deposits-

These types of accounts are opened from an investment point of view to earn a higher interest rate. You can usually deposit your funds for a fixed amount of time that range from 7 days to 10 years. You can, usually, withdraw after your sum has matured. The interest rates depend upon the maturity tenure that you have opted for your account.

5. Recurring Deposit-

Here, you need to deposit a fixed amount of money for a certain period. The interest rate on a recurring deposit account is higher than a savings account yet, lower than FDs. Unlike fixed deposits where you invest a lump sum amount, in a recurring deposit one can deposit a fixed amount of money in recurring mode, the tenure and amount are set.

6. NRI accounts-

Also known as overseas accounts, they include two types of savings accounts and fixed deposits. NRO is non-resident ordinary, and NRE meaning non-resident external accounts. Banks also offer fixed deposit accounts for non-residents of India with foreign currency. You can open bank account online as well.

It proves that there are accounts for all purposes and needs. Before opening an account, you should do a thorough analysis and comparison. With the advent of digital banking, we have various options, and the banking process has become seamless.

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