Types of Bank Accounts and Deposits in India in 2024

India's banking system offers a diverse range of accounts in 2024 to cater the financial needs of individuals, businesses, and organisations. These accounts serve as a repository for depositing and withdrawing funds, earning interest, and conducting various financial transactions. Understanding the different types of bank accounts in India is crucial for managing personal finances, conducting business transactions, and achieving financial goals.

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Disclaimer: *The Guaranteed Returns are dependent on the policy term and premium term availed along with the other variable factors. 7.1% rate of return is for an 18 years old, healthy male for a policy term of 20 years and premium term of 10 years with Rs.10,000 monthly installment premium. All plans listed here are of insurance companies’ funds.

Types of Bank Deposits & Accounts in India

The following table outlines the types of accounts in bank for deposits in India:

Types of Bank Accounts	Features
Savings Bank Account	Basic deposit account for individuals Meant for storing and saving money Earns interest on deposits Typically has withdrawal and transaction limits Used for personal savings and daily transactions
Current Account	Designed for businesses and corporations Manages day-to-day financial transactions Usually has higher transaction limits May or may not earn interest Used for frequent transactions like payments to suppliers, clients, and employees Often includes features like overdraft and cheque book issuance
NRI Account	For Non-Resident Indians (NRIs) living abroad Manages income earned outside India Provides various investment options

Comparison Between

Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund

Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund

Guaranteed Return Plans

Returns Before Tax

7.5% ^(TAX-FREE)

Returns After Tax

7.5%

Guaranteed Returns

Yes

Life Cover

Yes

Tax on Profit

Tax Free*

Risk

No Risk

Still Better than FD’s and Debt Mutual Fund

Fixed Deposits

Returns Before Tax

7% ^(TAXABLE)

Returns After Tax

4.8%

Guaranteed Returns

Yes

Life Cover

Tax on Profit

Taxable

Risk

Low Risk

Debt Mutual Fund

Returns Before Tax

8% ^(TAXABLE)

Returns After Tax

5.5%

Guaranteed Returns

Life Cover

Tax on Profit

Taxable

Risk

High Risk

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*For annual premium upto ₹5 Lacs

Types of Deposits Account in India for NRIs	Features
Non-Resident Ordinary (NRO)	Allows NRIs to manage local expenses, receiving rent, or interest income from India You can also invest in mutual funds or bonds linked to your NRO account Permits savings and transaction in rupee currency Repatriation limited to specified amounts Amount deposited and interest earned are liable to taxation as per Income Tax Act, 1961
Non-Resident External (NRE)	Designed for NRIs to maintain foreign earnings in India Holds deposits in Indian Rupee currency only Provides tax benefits on your deposits in this account No limit on deposits or withdrawals.
Foreign Currency Non-Resident (FCNR)	Fixed deposit account denominated in foreign currency (USD, EUR, etc.) Enables NRIs to earn interest in the respective foreign currency Offers a secure way to save your foreign income without currency fluctuations
Demat Account	Holds and transacts securities electronically Eliminates the need for physical certificates Used for buying, selling, and transferring stocks, bonds, and securities
Senior Citizen Account	Specifically for senior citizens (aged above 60) Offers special benefits like higher interest rates on fixed deposit and savings account, lower fees, and exclusive privileges
Salary Account	Offered by employers to employees for salary crediting Often has zero balance requirement and higher withdrawal limits Additional benefits like insurance coverage and discounts on services
Recurring Deposit (RD) Account	Deposit a fixed amount monthly (minimum Rs. 100). Cultivates a regular savings habit. Interest Rates vary among banks (3% to 7%) Higher rates for senior citizens aged above 60 years Maturity period 6 to 120 months, depending on the bank Allows a loan up to 80%-90% of the deposit No premature withdrawal facility
Fixed Deposit Account	Money deposited for a fixed time with guaranteed returns. FD interest rates between 5% to 9% (higher than savings accounts) Tenure of 7 days to 10 years. Some banks offer tax-saving FDs that provide deductions of up to Rs. 1,50,000 under Section 80C of the IT Act, 1961. Interest below Rs. 40,000 is tax-free; above is subject to TDS. No premature withdrawal of FD; early closure with a penalty. Safe investment for saving habits guaranteed returns.

FD interest rates India have fallen consistently over the last 12 years.

Invest in Plans that offer Guaranteed Returns for over 25 Years

People Also Read: SBI FD Interest Rates

Summing It Up!

The Indian banking system offers diverse bank deposit account types to cater to the varied needs of customers. From traditional savings and fixed deposits to innovative offerings like recurring deposits and term deposits, individuals and businesses can choose the type of bank deposits that aligns with their financial goals and preferences.

Bank FD Interest Rates

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NRI-NRE FD Rates

Allahabad Bank FD Interest Rates

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Assam Gramin Vikash Bank FD Interest Rates

AU Small Finance Bank FD Interest Rates

Axis Bank FD Rates

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Bandhan Bank FD Interest Rates

Bangiya Gramin Vikash Bank FD Interest Rates

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HDFC NRE FD Rates

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Maybank Singapore FD Rates

Yes Bank NRI FD Rates

FAQs

How many types of account in bank?
There are many different types of bank accounts, such as follows:
- Savings accounts
- Current Accounts
- Fixed Deposit Accounts (FDs)
- Recurring Deposit Accounts (RDs)
- Loan Accounts
There are how many types of deposit accounts in India?
There are numerous types of bank accounts in India, each catering to specific needs and offering unique features:
- Regular Savings Accounts
- Salary Accounts
- Current Accounts
- Fixed Deposit Accounts (It is advised to use FD calculator online tool to get the estimate of returns on fixed deposit before making the decision to invest.)
- Recurring Deposit Accounts (RDs)
- Demat Accounts
- Loan Accounts
What are the 4 types of deposits?
The four types of deposits in bank accounts in India are as follows:
- Demand Deposits
- Time Deposits
- Savings Deposits
- Special Deposits like Recurring Deposit Accounts (RDs) and Senior Citizen Savings Accounts
What are the 3 deposit methods?
The three prevalent and convenient types of deposits in India are:
- Cash Deposit
- Digital Transfers
- Cheque Deposit
What is a deposit type?
Deposit type can refer to the following categories:
- Bank deposits (Demand deposits, Time deposits, Savings deposits)
- Security deposits
- Advance deposits

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

* Applicable for Titanium variant of Max Life Smart Fixed-return Digital (Premium payment of 5 years, Policy term of 10 years) and a healthy male of 18 years old paying Rs. 30,000/- monthly (exclusive of all applicable taxes)

** Fixed deposit rate applicable for 5 year's 1 day to 10 years for investment amount less< 2 Crore ( Not for senior citizens).

*** PPF interest rate applicable for 15 years for investment amount upto 1.5 Lac

+ Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023

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## The Guaranteed Returns are dependent on the policy term and premium term availed along with the other variable factors. 7.1% rate of return is for an 18 years old, healthy male for a policy term of 20 years and premium term of 10 years with Rs.10,000 monthly installment premium. All plans listed here are of insurance companies’ funds.

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