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Types of Bank Accounts in India List, Provisions, Benefits

Types of Bank Accounts in India

Bank accounts in India are broadly classified into different types based on their purpose and features. They offer various benefits and facilities to their customers such as safe storage of funds, easy access to money, and attractive interest rates. The Types of Bank Accounts vary based on factors such as the account holder, the purpose of the account, the frequency of transactions, and the terms and conditions associated with deposits and withdrawals.

Read More: Indian Financial System

List of Types of Bank Accounts in India

Here is a list of various Types of Bank Accounts in India.

S. No Account Type Who can Open Provisions of Deposit Provisions of Withdrawal
1 Savings Account Individuals, trusts, and charitable institutions Unlimited deposits allowed, usually low-interest rate Limited withdrawals are allowed per month, usually through cheques and ATMs
3 Current Account Businesses, companies, and entrepreneurs Unlimited deposits are allowed, usually with no interest rate No limit on withdrawals, usually through cheques and electronic transfers
4 Fixed Deposit Account Individuals and businesses Fixed amount of deposit for a fixed period of time, high-interest rate Withdrawals are not allowed before the maturity date, the penalty may apply
5 Recurring Deposit Account Individuals Regular fixed deposits at fixed intervals, high-interest rate Partial withdrawals are not allowed, the penalty may apply for early closure
6 NRI Account Non-resident Indians Deposits in foreign currency, high-interest rate Limited repatriation of funds, only certain types of transactions allowed

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Other Different Types of Bank Accounts in India

Senior Citizen Account

This account is meant for individuals above a certain age (usually 60 years). The account may offer higher interest rates and other benefits to senior citizens.

Joint Account

This account can be opened by two or more individuals. All account holders have equal rights to operate the account.

Basic Savings Bank Deposit Account (BSBDA)

This account is meant for individuals who do not have a regular source of income. The account can be opened with zero balance and there are no restrictions on the number of deposits or withdrawals.

Read More: Types of Banks in India

Cash Credit Account

This account is meant for businesses and allows them to borrow money against their inventory or receivables. The interest rate on a cash credit account is usually higher than on other types of loans.

Overdraft Account

This account allows individuals or businesses to withdraw more money than the balance in their account, up to a pre-determined limit. The account holder is charged interest on the amount borrowed.

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Types of Bank Accounts in India UPSC 

Knowledge about the types of bank accounts in India is essential for candidates preparing for the UPSC exam. This topic is an important part of the UPSC Syllabus for the Prelims and Mains examination. Aspirants can expect questions related to the types of bank accounts in the economy and their features in the General Awareness section of the exam.

A thorough understanding of these topics can be achieved through online coaching, such as StudyIQ UPSC Online Coaching, and by taking UPSC Mock Test to assess one’s understanding of the subject.

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Types of Bank Accounts FAQs

What are the 4 bank accounts?

The question is unclear as there are many types of bank accounts.

How many types of bank accounts are there in India?

There are various types of bank accounts in India, including savings, current, recurring, fixed deposit, etc.

What are the 3 main bank accounts?

The three main bank accounts in India are savings, current, and fixed deposit accounts.

What are the 4 common types of bank?

The four common types of banks are retail banks, commercial banks, investment banks, and central banks.

About the Author

I, Sakshi Gupta, am a content writer to empower students aiming for UPSC, PSC, and other competitive exams. My objective is to provide clear, concise, and informative content that caters to your exam preparation needs. I strive to make my content not only informative but also engaging, keeping you motivated throughout your journey!


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