Types of Account &Deposit:-

          The major types of bank accounts are –

Savings Account 

               The facilities of savings account are only for savings purposes, and a bank is liable to pay interest on the funds which are deposited in the account. In India, the rate of interest for savings accounts ranges from anywhere between 4% to 7%.

Current Account 

               Current account mainly contains liquid deposits that are utilised for business purpose and not for savings or investments. No interest is paid on such an amount, and there are no maturity periods as well due to the continuous nature of the account.

Fixed Deposit Account 

               A particular sum of money is deposited in a fixed deposit account for a given duration. If deposit is taken out before the maturity date, penalties will be imposed. Fixed deposits enjoy higher interest rates. The interest rate is subjected to variation from bank to bank and also periodic revisions.

Recurring Deposit Account 

            In case of recurring deposit account, deposit will have to be made by the account holder at regular intervals for a specified time period. The bank will have to pay the relevant rate of interest when the amount is repaid after the fixed time period. 

Now that we have refreshed our memories let us start with the topic in hand.