10 Different Types of Bank Accounts in India

Ever wondered why banks offer so many different types of accounts? Savings, current, fixed deposits — each one serves a unique purpose. Whether you’re a student, a business owner or someone looking to grow your money, there’s a bank account made just for you.

Read on to understand the different types of bank accounts in India, what they offer and their features.

1. Savings Account

This is one of the most famous types of bank account in India. It’s a simple bank account where you can deposit money, earn interest and withdraw funds whenever needed. It’s a safe place to keep your money while helping it grow.

Key features:

• Provide interest on your deposits—usually between 2.5% to 4% per year.
• Some accounts need a minimum balance but you can also get a 0 balance account.
• Enjoy debit cards, online banking and easy fund transfers.

Ideal for: Salaried individuals, students and those looking to build savings.

2. Current Account

This type of account is designed for businesses and professionals who require frequent and high-volume transactions.

Key features:

Key Features of a Current Account:

• No limit on transactions.
• Usually no interest on deposits.
• Comes with chequebooks, overdraft facilities and online banking.

Ideal for: Businesses, organisations and entrepreneurs.

3. Fixed Deposit Account

A fixed deposit (FD) account is an investment-oriented type of bank account where funds are locked for a fixed tenure, offering higher interest rates than savings accounts.

Key features:

• Tenures range from 7 days to 10 years.
• Interest rates are usually between 5% to 7%.
• Premature withdrawals may attract penalties.

Ideal for: Individuals seeking secure and predictable returns.

4. Recurring Deposit Account

A recurring deposit (RD) account allows you to save a fixed amount monthly for a specified period, earning interest similar to fixed deposits.

Key features:

• Flexible tenures ranging from 6 months to 10 years.
• Monthly deposits start as low as ₹100.
• Offers compounded interest for better returns.

Ideal for: Those with a steady income who want to save regularly.

5. NRI Accounts

For non-resident Indians (NRIs), specialised accounts like NRE, NRO and FCNR are available to manage income both in India and abroad.

Key features:

• NRE Account: Tax-free and repatriable, ideal for income earned abroad.
• NRO Account: Used for income earned in India; interest is taxable.
• FCNR Account: Allows deposits in foreign currency to avoid exchange rate risks.

Ideal for: NRIs managing finances across countries.

6. Salary Account

A salary account is offered to employees by their employers, facilitating monthly salary credits.

Key features:

• 0 minimum balance requirement.
• Exclusive perks like free debit cards and preferential loan rates.
• Converts to a savings account if salary credits stop.

Ideal for: Salaried individuals.

7. Jan Dhan Account

The Jan Dhan account, introduced under the Pradhan Mantri Jan Dhan Yojana (PMJDY), aims to promote financial inclusion among economically weaker sections.

Key features:

• No minimum balance is required.
• Offers RuPay debit cards and accidental insurance coverage.
• Encourages banking habits in rural areas.

Ideal for: Economically weaker sections and rural populations.

8. Demat Account

A Demat account is essential for individuals investing in the stock market, as it holds shares and securities in electronic form.

Key features:

• Simplifies trading and investment in stocks.
• Provides secure storage of securities.

Ideal for: Trading brokers and stock market investors.

9. Senior Citizen Account

Senior citizen accounts are tailored for individuals aged 60 and above, combining the benefits of savings and fixed deposits.

Key Features:

• Higher interest rates on deposits.
• Exclusive benefits like free chequebooks and health insurance.

Ideal For: Senior citizens seeking better returns and financial security.

10. Joint Account

A joint account allows multiple individuals to manage a single account together.

Key Features:

• Shared access and responsibility among account holders.
• Suitable for families or business partners.

Ideal For: Couples, families or business associates.

How to Choose the Right Type of Bank Account?

When selecting from the various types of bank account in India, consider factors like your financial goals, transaction frequency and the purpose of the account. For example:

• Choose a savings account for everyday banking needs.
• Opt for a current account if you run a business.
• Consider an NRI account if you reside abroad.

Conclusion

Managing money starts with picking the right bank account. Whether you’re saving, investing, or running a business, there’s an account type that fits your needs. The right choice can help you grow your money and keep things simple.

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FAQs

1. Which account type is best?

The best account type depends on the financial requirements and goals. 

• Savings accounts – Great for everyday transactions and growing your savings.
• Current accounts – Ideal for businesses with frequent transactions.
• Fixed deposits – Best for secure, long-term investments.

2. Which bank account is safer?

All bank accounts regulated by the Reserve Bank of India (RBI) follow strict security protocols. However, savings and fixed deposit accounts are usually safer since they offer more stability and lower risks.

3. Can you change your bank account type?

Yes, you can change the bank account type from one to another. Most banks let you switch your account type easily, depending on the policies such as:

• A salary account can be converted to a savings account when salary credits stop.
• You can upgrade to a premium account by meeting the bank’s eligibility criteria.