The different types of bank account this is quick and easy. Commercial banks have traditionally been the largest source of loans to small businesses. These banks offer loans and may provide credit cards, and theyre the ones with numerous branch locations in populated areas commercial banks focus on business customers. They also make consumer loans, including mortgages, and offer credit cards, deposit products and. A bank account in kenya is a recording of all the financial transactions that happen between the customer and the banking institution. Each bank will offer different features with each account type but theres basically 4 general bank account types. A smaller amount is required to open a savings account than a fixed deposit account. Savings account a savings account offers a simple, hasslefree way to save money. Current accounts savings accounts each bank may have its own names for accounts within these two types, but the basic points remain the same. Recently banks have also introduced combining features of these accounts as per customer and market requirements. A look at different types of bank accounts to help you choose the one that best fits your needs and circumstances. This is quick and easy advice about the different types of bank account. I made a reference to categorizing lenders into four groups, big market, middle market, small market and those in it for the money. There are a many different bank accounts available and some words to get used to.
Ask yourself if you want to use this account to save money over time or if youll be using the account for daytoday transactions. Also, three different subtypes of personal account are natural, representative and artificial. A bank account is a financial account maintained by a bank or other financial institution in which the financial transactions between the bank and a customer are recorded. Different types of savings account provided by different banks. Types of bank accounts in india current accounts,t. There are also restrictions for as to how many times you can only withdraw in a day as well. You cannot earn interest with most checking accounts, however. Categories of banks big market lenders middle market. The ultimate guide to the different types of bank accounts. These are banks where majority stake is held by the government of india or reserve bank of india. Certificates of deposit cds certificates of deposits are the last of the main five different types of bank accounts.
What are the different categories of customers in any bank. Under individuals, the following special types of customers also come. Savings accounts are types of bank accounts that are aimed to make you save money. Within these categories you will find the main types of bank accounts available such as checkcheque account also known as current account, savings account and a few others which we get into further down the page. Recently banks have also introduced combining features of these. Checkout this power point presentation which explains the different types of accounts in the bank. These are much like the standard option but with several basic restrictions.
If you would like, print this study aid for future reference. Fdic money smart check it out study aid for adults. Real, personal and nominal types of accounts in accounting. Bank accounts are classified into four different types.
A debit card is similar to an atm card in that both allow you to deposit cash into and withdraw. Different types of bank accounts serve different needs. Though banks offer several different types of accounts, they can be broadly divided into three types explained in this ppt. Common account types include checking, savings, money. These deposits are the most liquid deposits and there are no limits for number of transactions or the amount of transactions in a day.
These types of bank accounts in uk can earn a little interest if the balance gets kept above a certain limit basic bank cash card account. How to understand different types of bank accounts with. The thing is that the money you deposit in these types of bank accounts earns interest. Students will compare four types of accounts offered. Scheduled banks scheduled commercial banks are those included in the. How to compare checking accounts at different banks. I said i would share details of that conversation this week. Ppt types of bank accounts powerpoint presentation. This classification of various types of banks in india is highly useful for solving the banking awareness questions asked in exams conducted by ibps, sbi, rbi, and other recruiters in the banking industry.
There are different types of thermal power plants based on the fuel used to. The entity concept separates the concerns of the owners from the business. Develop business process design for house banksbank accountscheck numbering in sap identify check design output form develop business process design supporting daily check management. These banks accept the deposits from the people and advances loans to needy persons. Recognize the different types of money market accounts. A checking account offers a quick and convenient way for people to access their money as often as they need. Banking in kenya has provided several types of bank accounts to cater to all. Different types of bank accounts uk bank account types. Retail banks are probably the banks youre most familiar with. Keeping your cash secure and accumulating interest. Different types of bank accounts bromoney online banks. There are a few different types of bank accounts and most banks offer at least the basic few. Catering to the specific needs of customers, banks across the country are offering specialised savings account, such as savings account for senior citizens, savings accounts for women, children, salary savings accounts and regular savings accounts.
An extension of the same concept is the concept of accounts which splits up the businesss affairs further. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Total credit should not exceed 1lakh rupees in a year. But this provision, which was introduced at the time when banks were nationalized, no longer is appropriate in a system where most banks are privately owned and even the largest stateowned bank, nbp, has private shareholders. Doing so allows you to maximize the return from your bank, minimize fees, and manage your money conveniently. A bank may have a positive, or credit balance, where the bank owes money to the customer. Savings accounts come with the advantage of tax free interest up to rs. In some cases, they can set up checking accounts and make loans for smallscale businesses as well.
These days banks have taken on the idea of personalised banking and developed a range of bank accounts to suit the particular banking needs of their customers or so they would have us believe. Choose between savings, checking, money market, cds, and retirement accounts. When you picture a bank, a retail bank probably comes to mind. While, there is no interest paid on amount held in the account, banks charges certain service charges, on such. Here, there is a certain limit on the amount of money that you can withdraw in a day. In another article, i told you the story about robins company needing to perform due diligence on her lender.
Your checking and savings accounts are often kept with a retail bank, which focuses on consumers or the general public as customers. There are many different kinds of bank accounts, each with their own pros and cons. The rate of interest ranges between 4% to 6% per annum in india. The following are the core bank accounts youll encounter. Commercial banks collect savings and opening different types of accounts and provides loan by different methods.
In india, banks usually have four major types of deposit accounts current account, savings account, recurring deposit and fixed deposit. You can open more than one type of bank account to meet your various needs. The types of bank accounts are current account, savings account, recurring deposit account, and fixed deposit account. Banks commercial regional cooperative banks rural banks banks non scheduled scheduled banks banks indian foreign banks banks public private sector sectorstate bank nationalized of india bank 3. The types of banks in india can be understood from the following table, which explains what kind of customer base different types of banks have. Types of bank accounts what you should know before. A free powerpoint ppt presentation displayed as a flash slide show on id. Your bank can help you decide which type of account you need. There are three different types of accounts from which customers choose the most suitable account for their needs.
Different types of bank accounts different types of bank. Lesson 15 banking national institute of open schooling. Depending on your goals, its wise to put money into the best account and use the right tools for spending and saving. Save and investput it in the bank federal reserve bank of dallas. On the basis of functions, the banking institutions in india may be divided into the following types. Opening your first checking account can be a difficult task, especially with the different types of checking accounts to choose from and the abundance of financial institutions that are willing to accept you as a customer. There are different types of bank accounts existing in the society, which differ in their purposes and functions. Banks nationalization act of 1974, all bank deposits are protected by the government. Current account is mainly for business persons, firms, companies, public enterprises etc and are never used for the purpose of investment or savings. For this account, overdraft facility will be provided up to rs. Real account is then classified in two subcategories intangible real account, tangible real account. A tiered mma offers higher interest rates for higher balances. A bank account can be a deposit account, a credit card account, a current account, or any other type of account offered by a financial institution, and represents the funds that the customer has entrusted to or borrowed from the financial institution.
While there are several different types of savings accounts, the three most. Retail banks offer members of the general public financial products and services such as bank accounts, loans, credit cards and insurance. Recurring deposits are a special kind of term deposits offered by banks in india which help people with regular incomes to deposit a fixed amount every month into their recurring deposit account and earn interest at the rate. Banks usually set a minimum balance to open andor maintain these types of bank accounts. These banks play the most important role in modern economic organisation. What are the different types of bank business study notes. One of the most important functions of banks is taking in deposits.
Pdf types of bank accounts in india deposit accounts. Types of bank accounts saving,recurring,current,fixed deposit,multiple option deposit ac recurring depositrd. Certificates of deposit are also known as time deposits with these bank account types, the one depositing the money agrees to keep the money in the account for a designated amount of time usually between three months and six years. However, in recent years, due to ever increasing competition, some banks have introduced new products, which combine the features of above two or more types of deposit accounts. Broadly bank customers can be classified into two categories individuals and nonindividuals. Ppt on types of banks free download as powerpoint presentation. A bank account is a financial account maintained by a bank or other financial institution for a customer. These are known by different names in different banks, e. Each financial institution sets the terms and conditions for each type of account it offers, which are classified in commonly understood types. Start studying economics types of bank accountssavings. Savings accounts are for storing money and getting some interest. Types of bank accounts in india deposit accounts traditionally banks in india.