A bank account is a financial account that is maintained by a financial institution, in simple words, a bank for the customer. The customer can deposit and withdraw money from his/her account. However, these functions depend on the nature of the account. Banks offer different types of accounts for varied banking operations. Your bank account can be a savings account, overdraft account, current account, credit card account, loan account or a time deposit account.
- Savings accounts are basic bank accounts that are made for people to deposit their earnings and savings. These accounts provide relatively higher interest rates on the deposited amount. Most savings bank accounts have a minimum balance limit.
- Current accounts are generally opened by businesses and companies that have a frequent cash flow. These accounts allow them to make transactions throughout the day. Most current accounts also have an overdraft facility.
- Credit card accounts are the ones specifically opened for the individuals who are issued a credit card by the bank. These accounts act as a database for the cardholder. Credit card bills, enhanced credit limits and many other operations are performed through these accounts.
- Loan accounts are opened for the individuals who have obtained a loan from the bank. It can be a home loan, vehicle loan, personal loan, etc.
- Time deposit accounts are investment accents that are made for the investment purposes only. These are usually RD (Recurring Deposit), FD (Fixed Deposit) accounts that offer decent interest rates and are great for saving money for long-term. Some time deposit accounts also have an overdraft facility.