In todays fast pace world, Banks emerged as the vital financial institutes of any country and are useful from business to personal requirements. Banks provides the safest mode of transaction and helps us to supervise and handle our transactions. To get the professional financial services it is obligatory to have a bank account for every individual whether s/he wants to utilize for business purposes or for personal use. Opening a bank account facilitates the safe custody of your cash and transaction, while and when the account owner needs the cash they can withdraw the desired amount depending upon the sort of bank account they have. By having a bank account you can easily make and receive payments to and from a third party. Payment may concern to insurance premium, electricity and other utility bills. Once you have a bank account the bank can also make the direct payments on the given instruction of the customer.
Moreover, bank is able to collect customers direct money in respect of salary, dividends, and pension or from any other party or debtors. The received money is set down into accounts holder account. Current account holders have the opportunity to get an overdraft benefit from his/her bank. The fixed deposit account holders can have the opportunity to take loan up to 75% to their credit. While saving account holders also have the choice to take loan to purchase laptop or other similar equipments. Banks account relaxes businessman nerves in conducting business operations both domestically and in foreign markets. A specific type of bank account provides the customer with the facility of safe deposit locker as well for their valuables like property documents, jewelry, share certificate etc.
Bank accounts are of various type and banks often specify accounts according to their system and customer needs. But following three are the most common and used bank accounts.
Saving account
Current account
Fixed deposit account
Saving account is mainly opened by people having fixed regular income or by salaried people. It is basically opened with an aim to encourage the saving habit among people; the account holder has the option to withdraw money from his/her account 2-3 times. Interest offered on the saving accounts is often attractive and vary from bank to bank, location to location and prevailing banking principals within the country. Best thing is there is no limit to deposits and have no validity or any maximum time duration and the account owner can withdrawal money either by withdrawal slip or cheque and ATM as well. Saving bank account holder has the advantage to earn money by interest means and also has some other facilities varying from bank to bank.
Current bank account mainly opened by people especially businessmen who have to handle number of transactions including withdrawals and deposits regularly with bank and is also termed as Demand deposit. You can open current account in both commercial and co-operative banks and can deposit and withdrawn money anytime and doesn’t demand for any prior notice. It is also among one of the suitable way of making transactions to creditors via cheques, enabling the business tycoon to run their business flawlessly and efficiently. There are no limitations of deposit and withdrawal in current account and is of continuing nature. Account holder has the facility to get the opportunity of overdraft and is one of the best ways that encourages industrialist for growth and progress.
Fixed deposit account is opened for a particular time period by depositing (fixing) a particular digit of money (amount) and is termed as fixed deposit account. It means that the deposited money will be fixed for the given time period and is repayable after the particular time period is over. Fixing duration varies from 6 months to one year, five years to even ten years or more depending on the bank rules and regulations. The cash deposited for this particular duration cannot be utilized before the due date. The interest rate on the fixed amount varies from bank to bank depending on the deposited amount and period. It motivates saving habit among people for longer period of time, the amount will be deposited once and for further deposits there is a need of separate bank account. There is no withdrawal facility in fixed account however, in emergency situation banks give the facility to take the fixed amount before maturity date but with some percentage of deduction. Depositor also has the option to get loan from bank, the bank make use of the deposited money in various constructive ways and indirectly enhances countries economic growth and success.
Opening bank account is not a difficult task you just have to decide about the desired account and bank, and the bank officer will complete the further requirements and handover the detail of your account thats it.