India's banking system offers a diverse range of accounts in 2024 to cater the financial needs of individuals, businesses, and organizations. These accounts serve as a repository for depositing and withdrawing funds, earning interest, and conducting various financial transactions. Understanding the different types of bank accounts in India is crucial for managing personal finances, conducting business transactions, and achieving financial goals.
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The following table outlines the types of bank accounts in India:
|Type of Bank Account||Features|
|Savings Bank Account||
|Senior Citizen Account||
|Foreign Currency Non-Resident (FCNR) Account||
Special type of account where you deposit a fixed amount every month instead of a lump sum amount, with a minimum deposit as low as Rs. 100
Ideal for incorporating a habit of savings
Interest rate offered varies from bank to bank, ranging from 5% to 7%, with different rates for senior citizens
Maturity ranges from six months to 120 months, depending on the bank
Monthly installments can be credited to the Recurring Deposit account through an order to the bank
Penalty may be charged for delay in installment payment
RD account allows for taking a loan up to 80% to 90% of the deposit amount
No facility for premature withdrawal
Penalty may be applicable for closing the account before maturity
Fixed deposit is an investment instrument offered by banks, financial institutions, and non-banking financial companies.
With the fixed deposit, money is deposited for a fixed tenure and guaranteed returns are provided.
The FD interest rates range from 5% to 9%, higher than savings account interest rates.
Tenure for fixed deposit ranges from 7 days to 10 years.
Some banks offer fixed deposits with a tax exemption of up to Rs. 1,50,000 under Section 80C of the Income Tax Act, 1961.
Interest amount below Rs. 40,000 is tax-free, while interest amount above Rs. 40,000 is subject to TDS.
Premature withdrawal of fixed deposit is not allowed, but the account can be closed early with a penalty.
Fixed deposit is a safe investment option for building a saving habit and offers guaranteed returns.
Today, people in India can easily manage personal finances as different types of bank accounts are available. In addition, multiple types of fixed deposits are available for Indian citizens to save and grow their investments.
With technology advancements, banking has become more accessible and convenient that allows individuals to have greater control over their money and achieve financial objectives.
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^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
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