There are Four types of Bank accounts are as Follows :
1) Fixed Deposit Account :
In this types of account a certain amount is deposited for a fixed period of time in order to earn interest. This amount can be drawn only after the expiry of the fixed period. Generally those persons, who intend to earn income by the way of interest, deposit into this account. This account is not too useful to Businessman for regular banking transactions. However surplus funds can be invested in this account to earn extra income.
2) Recurring Deposit Account :
In this type of account the depositor deposits a fixed sum of money every month for a specific period of time. Depositor is not allowed to withdraw from this account until its maturity. On maturity Bank pays total amount of deposit along with interest on that lump sum to account holder.
3) Savings Account :
The object of this account is to encourage saving habit in Limited income group. Amount deposited in this account can be withdrawn once or twice a week. Interest at a prescribed rate is allowed on this Deposit. The Depositor can avail cheque facility but for this a minimum balance must be retained in this account.
4) Current Account :
Depositor can deposit and withdraw any number of times from this account during the Bank working hours. There is no restrictions on the number of withdrawals. Generally no interest is allowed on this account. But some Bank pay 0.5 % or 1% on current account. Current account also grants cheque book facility to its account holder.
Businessman opens a current account with bank not for earning interest but enjoy banking, credit and other services given by bank. Current account holders also get overdraft facility on this account.