1)Savings Bank Account:
Savings Bank Accounts are meant to promote the habit of
saving among the citizens while allowing them to use their funds when required.
NOTE:
-The rate of interset is very lov in Saving bank account.
-The main advantage of Savings Bank Account is its high
liquidity and safety.
-Maximum 25 transactions in a day is allowed.
Bank Fixed Deposits are also known as Term Deposits. In a
Fixed Deposit Account, a certain sum of money is deposited in the bank for a
specified time period with a fixed rate of interest. The rate of interest for
Bank Fixed Deposits depends on the maturity period. It is higher in case of
longer maturity period.
NOTE:
-There is great flexibility in maturity period and it ranges
from 15days to 5 years.
3)Current Account:
Current Account is primarily meant for businessmen, firms,
companies, public enterprises etc. that have numerous daily banking
transactions. Current Accounts are cheque operated accounts meant neither for
the purpose of earning interest nor for the purpose of savings but only for
convenience of business hence they are non-interest bearing accounts.
NOTE:
-There is no restriction on the number and amount of
deposits. There is also no restriction on the withdrawals.
-Generally bank does not pay any interest on current
account. Nowadays, some banks do pay interest on current accounts.
-Current account is of continuing nature and as such there
is no fixed period.
-Current account enables the account holder to obtain
overdraft facility.
4)Demat Account:
Demat refers to a dematerialised account. Demat account is
just like a bank account where actual money is replaced by shares. Just as a
bank account is required if we want to save money or make cheque payments, we
need to open a demat account in order to buy or sell shares.
5)Recurring Bank Deposits:
Under a Recurring Deposit account (RD account), a specific
amount is invested in bank on monthly basis for a fixed rate of return. The
deposit has a fixed tenure, at the end of which the principal sum as well as
the interest earned during that period is returned to the investor.
NOTE:
-The period of deposit is minimum six months and maximum ten
years.
-The rate of interest is higher.
-The bank provides the loan facility. The loan can be given
upto 75% of the amount standing to the credit of the account holder.
E-BANKING (NET
BANKING):
Banking
activity carried on through computers and other electronic means of
communication is called ‘electronic banking’ or ‘e-banking’.
1) Automated Teller Machine:
Banks have now
installed their own Automated Teller Machine (ATM) throughout the country at
convenient locations. By using this, customers can deposit or withdraw money
from their own account any time.
2) Debit Card:
Banks are now
providing Debit Cards to their customers having saving or current account in
the banks. The customers can use this card for purchasing goods and services at
different places in lieu of cash. The amount paid through debit card is
automatically debited (deducted) from the customers’ account.
3) Credit Card:
Credit cards are
issued by the bank to persons who may or may not have an account in the bank.
Just like debit cards, credit cards are used to make payments for purchase, so
that the individual does not have to carry cash. Banks allow certain credit
period to the credit cardholder to make payment of the credit amount. Interest
is charged if a cardholder is not able to pay back the credit extended to him
within a stipulated period. This interest rate is generally quite high.
4)Net Banking:
With the extensive
use of computer and Internet, banks have now started transactions over
Internet. The customer having an account in the bank can log into the bank’s
website and access his bank account. He can make payments for bills, give
instructions for money transfers, fixed deposits and collection of bill, etc.
5)Phone Banking:
In case of phone
banking, a customer of the bank having an account can get information of his
account, make banking transactions like, fixed deposits, money transfers,
demand draft, collection and payment of bills, etc. by using telephone .
