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What are the types of bank accounts in India?

India has different types of bank accounts for different purposes. Find out the various types of accounts that can help you decide which one suits your requirements best

Topics
bank accounts | savings a/c | Banks

Team TMS  |  New Delhi 

There are four types of in India. Private banks, public-sector or nationalised banks, foreign and cooperative banks. You can open an account in any or all of these banks. Let's start with the first type, the savings bank account. Well, as the name suggests, these deposit accounts are for consumers to save money. So, any India resident can open a savings bank account if they have two things: an Aadhaar card and PAN. Please note that both these things are mandatory if you want to open a savings bank account. Now, let's talk about some key features of a savings bank account. There are some exceptions when the mandatory minimum balance criteria is not applicable. For example, if you have opened your savings account under the government's financial inclusion plan or the Pradhan Mantri Jan Dhan Yojana, there is no minimum balance requirement. Now, the second type: The Current account These accounts are basically used for daily business activities. In simpler terms, where there is a need to frequently transfer money from one account to another.

These are mainly business accounts and mostly used by corporations and businessmen. If you are wondering about the benefit of a current account, it has a special overdraft facility. Under this, you can withdraw more money than what is there in your account. The third account type we talk about is the salary account. As the name suggests, these are the accounts for the purpose of salary transfer. Banks allow these accounts on the requests of corporations and entities that want to disburse salaries to employees. So, the account where you get your monthly salary is called a salary account. Now, let's talk about the fourth type: Demat accounts. This account helps investors hold shares and securities in the electronic form. That means it helps you keep a track of all your investments - be it mutual funds, shares, bonds or exchange-traded funds… all at one place. Overall, it helps investors trade and invest in equity shares in the stock market and converts the share certificates from the physical form to the electronic form.

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First Published: Mon, December 06 2021. 08:45 IST
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