What Does Bank Account Mean?

Savings in an account are offered to the public to encourage their small savings. Those who open it include students, salaried persons, and small traders. These small savings by individuals constitute a huge amount at the bank. It can be opened with as minimum as five rupees. But in practice banks demand at least one thousand rupees to open it. Current account is operated by businessman. Earlier it could be opened with a maximum of five hundred rupees but now a minimum of two thousand is needed. Even some banks require five thousand rupees to open it. It can be operated by any number of times a day.

Unlike savings accounts there is no upper limit of the withdrawal. Fixed deposit account is opened for a definite period of time without the expiry of which the amount cannot be withdrawn. The rate of interest is higher than that of savings account. The greater the period for which money is deposited the higher the interest rate is offered. Home savings accounts, this type of account offers the facility to the account holder to save money right at home and put it in the locker provided by bank. The key of the locker remains with the bank which sends its officer every week to collect the amount from the locker.