Types of Bank Accounts And Deposits in India 2025

Types of Bank Accounts and Deposits in India in 2025

India's banking system offers a diverse range of accounts in 2025 to cater the financial needs of individuals, businesses, and organisations. 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.

Types of Bank Deposits & Accounts in India

The following table outlines the types of accounts in bank for deposits in India:

Types of Bank Accounts

Features

Savings Bank Account

Basic deposit account for individuals
Meant for storing and saving money
Earns interest on deposits
Typically has withdrawal and transaction limits
Used for personal savings and daily transactions

Current Account

Designed for businesses and corporations
Manages day-to-day financial transactions
Usually has higher transaction limits
May or may not earn interest
Used for frequent transactions like payments to suppliers, clients, and employees
Often includes features like overdraft and cheque book issuance

NRI Account

For Non-Resident Indians (NRIs) living abroad
Manages income earned outside India
Provides various investment options

Information About

Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund

Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund

Guaranteed Return Plans

Returns Before Tax

7.1% ^(TAX-FREE)

Returns After Tax

7.1%

Guaranteed Returns

Yes

Life Cover

Yes

Tax on Profit

Tax Free*

Risk

No Risk

Fixed Deposits

Returns Before Tax

7% ^(TAXABLE)

Returns After Tax

4.8%

Guaranteed Returns

Yes

Life Cover

Tax on Profit

Taxable

Risk

Low Risk

Debt Mutual Fund

Returns Before Tax

8% ^(TAXABLE)

Returns After Tax

5.5%

Guaranteed Returns

Life Cover

Tax on Profit

Taxable

Risk

High Risk

VIEW PLANS

*For annual premium upto ₹5 Lacs

Types of Deposits Account in India for NRIs

Features

Non-Resident Ordinary (NRO)

Allows NRIs to manage local expenses, receiving rent, or interest income from India
You can also invest in mutual funds or bonds linked to your NRO account
Permits savings and transaction in rupee currency
Repatriation limited to specified amounts
Amount deposited and interest earned are liable to taxation as per Income Tax Act, 1961

Non-Resident External (NRE)

Designed for NRIs to maintain foreign earnings in India
Holds deposits in Indian Rupee currency only
Provides tax benefits on your deposits in this account
No limit on deposits or withdrawals.

Foreign Currency Non-Resident (FCNR)

Fixed deposit account denominated in foreign currency (USD, EUR, etc.)
Enables NRIs to earn interest in the respective foreign currency
Offers a secure way to save your foreign income without currency fluctuations

Demat Account

Holds and transacts securities electronically
Eliminates the need for physical certificates
Used for buying, selling, and transferring stocks, bonds, and securities

Senior Citizen Account

Specifically for senior citizens (aged above 60)
Offers special benefits like higher interest rates on fixed deposit and savings account, lower fees, and exclusive privileges

Salary Account

Offered by employers to employees for salary crediting
Often has zero balance requirement and higher withdrawal limits
Additional benefits like insurance coverage and discounts on services

Recurring Deposit (RD) Account

Deposit a fixed amount monthly (minimum Rs. 100).
Cultivates a regular savings habit.
Interest Rates vary among banks (3% to 7%)
Higher rates for senior citizens aged above 60 years
Maturity period 6 to 120 months, depending on the bank
Allows a loan up to 80%-90% of the deposit
No premature withdrawal facility

Fixed Deposit Account

Money deposited for a fixed time with guaranteed returns.
FD interest rates between 5% to 9% (higher than savings accounts)
Tenure of 7 days to 10 years.
Some banks offer tax-saving FDs that provide deductions of up to Rs. 1,50,000 under Section 80C of the IT Act, 1961.
Interest below Rs. 40,000 is tax-free; above is subject to TDS.
No premature withdrawal of FD; early closure with a penalty.
Safe investment for saving habits guaranteed returns.

FAQs

How many types of account in bank?

There are many different types of bank accounts, such as follows:

Savings accounts
Current Accounts
Fixed Deposit Accounts (FDs)
Recurring Deposit Accounts (RDs)
Loan Accounts

There are how many types of deposit accounts in India?

There are numerous types of bank accounts in India, each catering to specific needs and offering unique features:

Regular Savings Accounts
Salary Accounts
Current Accounts
Fixed Deposit Accounts (It is advised to use FD calculator online tool to get the estimate of returns on fixed deposit before making the decision to invest.)
Recurring Deposit Accounts (RDs)
Demat Accounts
Loan Accounts

What are the 4 types of deposits?

The four types of deposits in bank accounts in India are as follows:

Demand Deposits
Time Deposits
Savings Deposits
Special Deposits like Recurring Deposit Accounts (RDs) and Senior Citizen Savings Accounts

What are the 3 deposit methods?

The three prevalent and convenient types of deposits in India are:

Cash Deposit
Digital Transfers
Cheque Deposit

What is a deposit type?

Deposit type can refer to the following categories:

Bank deposits (Demand deposits, Time deposits, Savings deposits)
Security deposits
Advance deposits

Types of Bank Accounts and Deposits in India in 2025

Types of Bank Deposits & Accounts in India

Summing It Up!

Bank FD Interest Rates

Bank FD Calculator

NRI-NRE FD Rates

FAQs

How many types of account in bank?

There are how many types of deposit accounts in India?

What are the 4 types of deposits?

What are the 3 deposit methods?

What is a deposit type?

FD Rates articles

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Types of Bank Accounts	Features
Savings Bank Account	Basic deposit account for individuals Meant for storing and saving money Earns interest on deposits Typically has withdrawal and transaction limits Used for personal savings and daily transactions
Current Account	Designed for businesses and corporations Manages day-to-day financial transactions Usually has higher transaction limits May or may not earn interest Used for frequent transactions like payments to suppliers, clients, and employees Often includes features like overdraft and cheque book issuance
NRI Account	For Non-Resident Indians (NRIs) living abroad Manages income earned outside India Provides various investment options

Types of Deposits Account in India for NRIs	Features
Non-Resident Ordinary (NRO)	Allows NRIs to manage local expenses, receiving rent, or interest income from India You can also invest in mutual funds or bonds linked to your NRO account Permits savings and transaction in rupee currency Repatriation limited to specified amounts Amount deposited and interest earned are liable to taxation as per Income Tax Act, 1961
Non-Resident External (NRE)	Designed for NRIs to maintain foreign earnings in India Holds deposits in Indian Rupee currency only Provides tax benefits on your deposits in this account No limit on deposits or withdrawals.
Foreign Currency Non-Resident (FCNR)	Fixed deposit account denominated in foreign currency (USD, EUR, etc.) Enables NRIs to earn interest in the respective foreign currency Offers a secure way to save your foreign income without currency fluctuations
Demat Account	Holds and transacts securities electronically Eliminates the need for physical certificates Used for buying, selling, and transferring stocks, bonds, and securities
Senior Citizen Account	Specifically for senior citizens (aged above 60) Offers special benefits like higher interest rates on fixed deposit and savings account, lower fees, and exclusive privileges
Salary Account	Offered by employers to employees for salary crediting Often has zero balance requirement and higher withdrawal limits Additional benefits like insurance coverage and discounts on services
Recurring Deposit (RD) Account	Deposit a fixed amount monthly (minimum Rs. 100). Cultivates a regular savings habit. Interest Rates vary among banks (3% to 7%) Higher rates for senior citizens aged above 60 years Maturity period 6 to 120 months, depending on the bank Allows a loan up to 80%-90% of the deposit No premature withdrawal facility
Fixed Deposit Account	Money deposited for a fixed time with guaranteed returns. FD interest rates between 5% to 9% (higher than savings accounts) Tenure of 7 days to 10 years. Some banks offer tax-saving FDs that provide deductions of up to Rs. 1,50,000 under Section 80C of the IT Act, 1961. Interest below Rs. 40,000 is tax-free; above is subject to TDS. No premature withdrawal of FD; early closure with a penalty. Safe investment for saving habits guaranteed returns.