Your personal profile in the bank is centered on an account that holds your money and enables the various financial transactions and economic activities. The account itself is of numerous types, each with its own sets of extra facilities and requirements. It is imperative to know them, or at least to get introduced to them because based on the intended transactions, the complimenting account selection has to be made. The purpose of maintaining an account can be to save the holder’s money, open options to increase its value and avail the best horizon of financial services for smart economic and lifestyle planning.
The types of bank accounts
Based on popularity and general application of usage, it is beneficial to know about the following types of bank accounts:
The ideal account for those who do not want to have continuous transactions, but prefer the money to get saved in the account and, even if gradual, lead to interest accumulation is the individual savings account. It is rather like an official account which is often joined by other saving investments like fixed deposits, certificate of deposits, recurring deposits, etc. A salary account when coupled with a savings account, makes an automatic extra saving without the need to deposit specifically or extra documentation.
To carry out constant transactions for routine, business and extra operations, opening a current account give access to our money without restrictions and too many service charges for the facilities availed.
For an individual, opening a single account is the first action of banking and for having a second person to operate the accounts, usually business partners or family, a joint account is a solution. For example, if the husband manages the outdoor financial actions, and the wife takes care of the mobile banking or internet banking activities for repeated monthly commitments, this website account serves both the purpose sides.
For funding options, the customer is given an individual account in the bank providing loan or financing, in which the repayments, interests, loan statements and credit history are linked. Once the loan is paid back in full, the account is closed with a loan closure statement.
Market transactions and trading activities including brokerage are carried out through demat accounts that are dedicated to the sole purpose of retail brokerage or stock market trading. The owner will have such an account and so will its customers.
Receiving and exchanging international currencies invite a set of separate legal and financial regulations such as higher interest rates, higher service charges and tax deductions. To accommodate the extra requirements, the NRI account is opened in the name of the foreign currency earning individual.