Types of Bank Accounts in India

1. CURRENT DEPOSITS / ACCOUNTS

2. SAVING BANK / Saving Fund DEPOSITS / ACCOUNTS

A deposit account held at a bank or other financial institution that provides
principal security and a modest interest rate. Depending on the specific type
of savings account, the account holder may not be able to write checks from
the account (without incurring extra fees or expenses) and the account is likely
to have a limited number of free transfers/transactions. Savings account funds
are considered one of the most liquid investments outside of demand accounts
and cash. In contrast to savings accounts, checking accounts allow you to
write checks and use electronic debit to access your funds inside the account.
Savings accounts are generally for money that you don't intend to use for daily
expenses. To open a savings account, simply go down to your local bank with
proper identification and ask to open an account.

Because savings accounts almost always pay lower interest rates than
Treasury bills and certificates of deposit, they should not be used for long-
term holding periods. Their main advantages are liquidity and superior rates
compared to checking accounts. Most modern savings accounts offer access to
funds through visits to a local branch, over the internet and through
automated teller machines.
3. RECURRING DEPOSITS / ACCOUNTS
Recurring Deposit is a special kind of Term Deposit offered by banks in India which
help people with regular incomes to deposit a fixed amount every month into their
Recurring Deposit account and earn interest at the rate applicable to Fixed
Deposits.[1] It is similar to making FDs of a certain amount in monthly installments,
for example Rs 1000 every month. This deposit matures on a specific date in the
future along with all the deposits made every month. Thus, Recurring Deposit
schemes allow customers with an opportunity to build up their savings through
regular monthly deposits of fixed sum over a fixed period of time.
The Recurring Deposit can be funded by Standing instructions which are the
instructions by the customer to the bank to withdraw a certain sum of money from
his Savings/ Current account and credit to the Recurring Deposit every month.
When the RD account is opened, the maturity value is indicated to the customer
assuming that the monthly installments will be paid regularly on due dates. If any
installment is delayed, the interest payable in the account will be reduced and will
not be sufficient to reach the maturity value. Therefore, the difference in interest will
be deducted from the maturity value as a penalty. The rate of penalty will be fixed
upfront. Interest is compounded on quarterly basis in recurring deposits.
One can avail loans against the collateral of Recurring deposit up to 80 to 90% of the
deposit value.
Rate of Interest offered is similar to that in Fixed Deposits. At present it seems to be
one of the best method to save the amount yield after years of deposit because TDS is
not applicable on RDs.
Taxation of Recurring Deposit Tax Deducted at Source ( TDS ) is not applicable on
RDs. However interest from RD is not tax free. Income tax is to be paid on interest
earned from a Recurring Deposit at the rate of tax slab of the RD holder.
4. FIXED DEPOSITS / ACCOUNTS OR TERM DEPOSITS
A fixed deposit (FD) is a financial instrument provided by banks which provides
investors with a higher rate of interest than a regular savings account, until the given
maturity date. It may or may not require the creation of a separate account. It is
known as a term deposit or time deposit in Canada, Australia, New Zealand, and the
US, and as a bond in the United Kingdom. They are considered to be very safe
investments. Term deposits in India is used to denote a larger class of investments
with varying levels of liquidity. The defining criteria for a fixed deposit is that the
money cannot be withdrawn for the FD as compared to a recurring deposit or a
demand deposit before maturity. Some banks may a offer additional services to FD
holders such as loans against FD certificates at competitive interest rates. It's
important to note that banks may offer lesser interest rates under uncertain
economic conditions. The interest rate varies between 4 and 11 percent.[1] The
tenure of an FD can vary from 7, 15 or 45 days to 1.5 years and can be as high as 10
years.[2] These investments are safer than Post Office Schemes as they are covered
by the Deposit Insurance and Credit Guarantee Corporation (DICGC). However,
DICGC guarantees amount up to 1,00,000 (about US$ 1600) per depositor per
bank.[3] They also offer income tax and wealth tax benefits.
Conclusion
Banking systems have been with us for as long as people have been using money.
Banks and other financial institutions provide security for individuals, businesses
and governments, alike.
In general, what banks do is pretty easy to figure out. For the average person banks
accept deposits, make loans, provide a safe place for money and valuables, and act as
payment agents between merchants and banks.
Banks are quite important to the economy and are involved in such economic
activities as issuing money, settling payments, credit intermediation, maturity
transformation and money creation in the form of fractional reserve banking.
To make money, banks use deposits and whole sale deposits, share equity and fees
and interest from debt, loans and consumer lending, such as credit cards and bank
fees.
In addition to fees and loans, banks are also involved in various other types of
lending and operations including, buy/hold securities, non-interest income,
insurance and leasing and payment treasury services.
History has proven banks to be vulnerable to many risks, however, including credit,
liquidity, market, operating, interesting rate and legal risks. Many global crises have
been the result of such vulnerabilities and this has led to the strict regulation of state
and national banks.

Bank Account
A bank account is a financial (pf) account between a bank customer and a financial
institution. A bank account can be a deposit account, a credit card, or any other type
of account offered by a financial institution. The financial transactions which have
occurred within a given period of time on a bank account are reported to the
customer on a bank statement and the balance of the account at any point in time is
the financial position of the customer with the institution. A fund that a customer has
entrusted to a bank and from which the customer can make withdrawals.
Online Banking
Online banking is an electronic payment system that enables customers of a financial
institution to conduct financial transactions on a website operated by the institution,
such as a retail bank, virtual bank, credit union or building society. Online banking is
also referred as Internet banking, e-banking, virtual banking and by other terms.

Banking

1. Bank
2. History of Banking
3. Banking in India
4. Main Functions & Services of Bank
5. Bank Accounts
6. Types of Bank Accounts (SB Account & R.D Account Explain)
7. Loans
8. Types of Loans provided by Banks
9. Facilities provided by the Banks
10. Conclusion
11. Some Problems Based on Banking
12. Bibliography