ICSE Class X - Math Project (Types of Bank Accounts in India)

Types of Bank Accounts in India

With the advancement in banking technology, many banks are offering tailor made products to suit individual needs. While accounts may differ from bank to bank their purpose remain the same. Many banks have different products on the basis of customer's age, income and gender. Here are a few different kinds of bank accounts.

There are mainly three types of Banking accounts in India:

1. Demand Deposits
2. Term Deposits
3. Non-Resident Deposits

Now, we will study one by one, starting from Demand Deposits.

1. Demand Deposit

• In these types of accounts, money is payable on demand.
• It includes current accounts and savings accounts (CASA - Current Account and Savings Account)

(A) Savings account: 

A savings account is an interest-bearing account held at a bank. There are mainly three types of saving accounts in Indian banks:

         (i) Basic Savings Bank Deposit Accounts (BSBDA)
         (ii) Basic Saving Bank Deposit Accounts Small scheme
         (iii) Normal Saving Bank Account

1)     Basic Savings Bank Deposit Accounts (BSBDA)

• According to RBI guidelines in August 2012, all banks are required to convert the existing 'no-frills' accounts’ into 'Basic Savings Bank Deposit Accounts'.
  No Frills Account- These accounts were introduced by RBI in November 2005 to provide banking facilities to the poor section of society. These accounts had the facility of ‘nil’ or very low minimum balance.
• An individual can open only one BSBDA account in one bank.
• These accounts are normal banking accounts available to all customers.
• There are no restrictions on age and income criteria of the individual for opening BSBDA.
• Know Your Customer (KYC) norms are applicable to these accounts.
• Jan Dhan accounts under Pradhan Mantri Jan Dhan Yojana comes under this category.

2)     Basic Saving Bank Deposit Accounts Small Scheme

• When a person doesn't possess any of the ‘official valid documents’, still he/she can open ‘small accounts’ with banks.
• Total deposit money by a person in such accounts should not exceed one lakh rupees in a year.
• Withdrawal money limit in this account is ten thousand rupees in a month.
• Any time maximum balance in the account should not exceed fifty thousand rupees.
• These accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an official valid document.
• Small Accounts can only be opened at the Core Banking Solution (CBS) linked branches.

3)     Normal Saving Bank Account

This account is a basic type of savings account. Customers earn interest over their deposits and this sort of an account typically comes with minimum balance requirement. Customers can make deposits and withdrawals. That said, withdrawals come with a daily limit.

• In this account, facilities and minimum balance vary from bank to bank.
• Generally, these accounts are held by individuals like the salaried person, student etc.

Types of regular savings accounts offered by top banks:

Listed below are the regular savings accounts offered by top banks along with the current interest rate and minimum balance requirement.

Bank	Interest Rate	Minimum balance requirement
DBS Bank Digi Account	4.00% - 7.00%	NA
HDFC Bank Regular Savings Account	3.50% - 4.00%	Rs.10,000 for metro and urban branches Rs.5,000 for semi-urban branches Rs.2,500 for rural branches
SBI Savings Plus Account	3.50% - 4.00%	Rs. 25,000
ICICI Bank Regular Savings Account	3.50% - 4.00%	Rs.10,000 in metro and urban branches Rs.5,000 in semi-urban branches Rs.2,000 in rural bank branches
Citibank Citi Banking Savings Account	4.00%	Rs.25,000
Axis Bank Basic Savings Account	3.50% - 4.00%	NA
Yes Bank Savings Value Account	5.00% - 6.25%	NA
Kotak Bank Nova Savings Account	5.00% - 6.00%	Rs. ,000
Bank of Baroda BOB Savings Account	3.50% - 4.00%	QAB of Rs. 500 for rural branches QAB of Rs.1,000 for urban branches
Standard Chartered Bank Basic Banking Account	4.00%	NA
PNB Saving Deposit(General) Account	3.50% - 4.00%	Between Rs.500 to Rs.1,000 for urban and rural branches
IDFC Bank Savings Account	4.00%	Rs.25,000
South Indian Bank Regular Savings	4.00%	NA
Andhra Bank Abhaya SB Account	4.00%	NA
IDBI Bank Super Savings Account	4.00%	Rs.5,000 Metro and Urban branches Rs.2,500 for semi-urban branches Rs.500 for rural branches
Canara Bank Savings Bank Account	4.00%	Rs.1,000 for Metro, Urban and semi-urban branches Rs.500 for rural branches
Indian Bank Savings Bank Account	3.50% - 4.00%	Rs.250 for non-cheque operation savings accounts Rs.500 for cheque operation savings accounts
UCO Bank Saral Savings Deposit Scheme	4.00%	Between Rs.250 and Rs.1,000 for rural and urban branches

a)     Senior Citizen Savings Bank Account:

·        As the name indicates the Senior Citizen Savings Bank Account, is tailor made for people above the age of 60.

·        Specifically designed only for senior citizens, the senior citizens savings account comes with special privileges and higher interest rates for depositors. Senior citizens can facilitate the use of this account to link their pension funds and manage it using the savings account.

·        Types of senior citizen savings accounts offered top banks:

·        Listed below are some of the top senior citizens savings accounts offered by top banks in the country.

Banks	Savings account name
HDFC Bank	Senior Citizens Account
ICICI Bank	Life Plus Senior Citizens Savings Account
Kotak Bank	Grand- The Savings Programme for the 55+
Axis Bank	Senior Privilege Savings Account
IDFC Bank	Senior Citizen Savings Account
IDBI Bank	Jubilee Plus (Senior Citizens) Account
Canara Bank	Canara Jeevandhara

Catering specifically to women, banks around the country have rolled out a number of women’s savings accounts that allows them to avail high value loans at attractive interest rates for female entrepreneurs or for them to start a business. Apart from this, the women’s savings account comes with all the features and facilities of a regular savings account.

Types of woman’s savings accounts offered by top banks: 

Bank	Savings account name
HDFC Bank	Kids Advantage Account
ICICI Bank	Young Stars Savings Account Smart Star Savings Account
PNB	PNB Junior SF Account PNB Vidyarthi SF Account
Axis Bank	Future Stars Savings Account
IDBI Bank	Power Kidz Account
Kotak Bank	Junior- The Savings Account for Kds
IDBI Bank	Power Kidz Account
IDFC Bank	Minor Saving Account
Indian Bank	IB Smart Kid SB Account
South Indian Bank	Junior Savings
Canara Bank	Canara Junior Saving Account
Andhra Bank	AB Kiddy Bank AB Little Stars AB Teens
UCO Bank	UCO Smart Kids Savings Bank Scheme
SBI	Savings Bank Account For Minors Savings Account for Minors: Pehla Kadam and Pehli Udaan

a)     Student Savings Account

·        Only few banks offer student savings account, with no minimum balance or very less balance to be maintained. 6) Current Account Current Account is a type of bank account which is relevant to the people who run business. Such accounts can be opened with public or private sector banks. Current accounts is ideal for carrying out day-to-day business transactions.

b)     Kids Account Individual (Children & Minor)

·        can open separate account for kids. Which will help in saving money and the same can be used for future fee payment or making any further investment.

·        In a bid to encourage children to save for the future or to enable parents or guardians save for their child’s future, banks across the country offer specialised children and minor savings accounts. This type of a savings account does not come with a minimum balance requirement and shares similar features and facilities with a regular savings account.

c)     Salary savings account:

This sort of an account is usually set up by the establishment the customer works for. The customer will receive his/her monthly earnings in this type a savings account and this sort of an account typically does not come with any minimum balance requirement. Customers can avail a number of facilities through the internet banking facility that comes with this account. If by chance no salary is credited to this account for a span of three months, the salary savings account will automatically be converted to a regular savings account with a minimum balance requirement.

Features and Benefits of Savings Account

·        Savings accounts allow salaried individuals to save for the future using their regular monthly net income.

·        Earn interest over deposits.

·        There is no limit as to how long an individual can hold a savings account.

·        Savings accounts comes with internet banking facilities, allowing account holders to check their balance, initiate a fund transfer, request for a cheque book, get a detailed description of the money in and out of their account, etc.

·        Customers can make purchases from their savings account either by using their credit card, debit card or online on merchant websites.

·        For customers that do not wish to go through the hassle of maintaining a minimum balance requirement, they can opt for a zero-balance savings account.

·        Customers can park their short-term savings.

·        Customers can enroll in the Public Provident Fund scheme through their savings account.

·        No limit to the amount of deposits and withdrawals a customer can make. That said, certain charges are applicable after a point.

Savings Account Facilities

Listed below are the facilities customers can avail with a savings account:

·        Customers can make bill payments, recharge their mobile phone, make a DTH top-up, etc.

·        Make fund transfers through the NEFT, RTGS and IMPS facilities.

·        Make withdrawals from ATMs across the country.

·        Make ATM deposits and deposits at any bank branch holding your account.

·        Customers can purchase goods online through the internet banking facility.

·        Reward points for every transaction. The reward points can be redeemed in the form of vouchers, movie tickets, travel tickets, etc.

·        Pay electricity bills through the e-banking facility.

·        Through the savings account, customers can pay their EMIs, clear their credit dues, etc.

·        Avail attractive loan schemes at low interest rates through one’s savings account.

·        Check detailed or mini statement of money flowing in and out of one’s account.

Documents Required to Open a Savings Account

Customers wishing to open a savings account have to submit the below listed documents when submitting the account opening application form at the bank branch.

·        Proof of identity - Passport, Voters’ ID, Aadhaar card, etc.

·        Proof of address - Passport, Driver’s license, Aadhaar card, etc.

·        PAN card copy

·        2 passport size photographs

 

(B) Current Account: 

 

A current account is an interest-free account held at a bank.

• People engaged in business prefer these types of accounts.
• In this account, there is no restrictions on the number of transactions permitted per day.
• For providing these facilities, banks take charges from the customers.
• Banks also provide overdraft facility to the customers. Overdraft facility allows the company or businessman to withdraw more money than what they have in their accounts with a promise of repayment of money within a stipulated time frame

Below are the most common types of bank accounts at leading banks of India.

Banks	Savings Account	Current Account	Other Accounts
ICICI Bank	-Regular Savings Account -Silver Savings Account -Advantage Woman -Savings Account -Senior Citizens Savings Account -Gold Privilege Account -Titanium Privilege Account	-Regular Account -Premium Account -Trade Account	-Salary Account -Pension Account -3-in-1 Account -Exchange Earners’ -Foreign Currency Account (EEFC)
HDFC Bank	-SavingsMax Acount -Regular Savings Account -Women’s Savings Account -Kids Advantage Account -Senior Citizens Account -Family Savings Group Account -Bank’s Savings Bank Deposit Account -Government/Institutional Savings Account -BSBDA Small Account -Government Scheme -Beneficiary Savings Account	-Ultima Current Account -Supreme Current Account -Apex Current Account -Ezee Current Account -Max Current Account -Agri Current Account -Plus Current Account -Current Account for Hospitals and Nursing Homes -Trade Current Account -Current Account Professionals Premium Current Account -Merchant Advantage Plus Current Account -Regular Current Account -Merchant Advantage Current Account -Flexi Current Account -Institutional Current Account -Smart Up solution for Start Ups -Ascent Current Account -RFC Domestic Current -Exchange Earner’s Foreign Currency (EEFC) Account -E-comm Current Account	-Salary Account -Pension Account -Rural Accounts
Axis Bank	-ASAP Instant Savings Account -EasyAccess Savings Account -Prime Plus Savings Account -Prime Savings Account -Women’s Savings Account -Senior Privilege Savings Account -Future Star Savings Account -Pension Savings Account -Trust/NGO Savings Account -Insurance Agent Account -Youth Account -Basic Savings Account -Small Basic Savings Account -Inaam Personal Account -Pradhan Mantri Jan-Dhan Yojana (PMJDY)	-Normal Current Account -Local Current Account -Business Advantage Account -Business Select Account -Business Classic Account -Sweeps Current Account	-Salary Account -Safe deposit Locker -Pension Disbursement Account -New Pension System
State Bank of India (SBI)	-Basic Savings Bank Account -Small Account -Digital Savings Account	-Regular Current Account	-Special Salary Account -Children’s Account
Kotak Mahindra Bank	-My Family Savings Account -811 Edge Savings Account -811 Savings Account -Edge Savings Account -Silk Women’s Savings Account -Junior-Savings Account for Kids -Sanman Savings Account -Pro Savings Account Grand - Savings Programme -Ace Savings Account -Classic Savings Account -Nova Savings Account -Alpha- Savings and Investments Programme	-Neo Account -Start Up Regular -Start Up Premium -Global Trade -Ace -Astra 05 -Astra 15 -Elite -Pro -Edge	-Corporate Salary Account -Kotak 3-in-1 Account
YES Bank	-Customizable Savings Account -Savings Value -Smart Salary Platinum -Smart Salary Exclusive -Smart Salary Advantage -Seafarer Savings Account NRO Savings Account NRE Savings Account	-Edge Business -Prime Business -Exclusive Business -Value Added Business -Packages -Existing Variants	-
IDBI Bank	-Super Savings Account -SuperShakti (Women’s) Account -Jubilee Plus (Senior Citizen) Account -Being Me Account -Power Kidz Account -Small Account -Sabka Savings Account -Pension Savings Account -Capital Gain Account Scheme	-Flexi Current Account	-DigiExpress Account -Corporate Payroll Account
IDFC Bank	-Zero Balance Savings Account -Savings Account -Minor’s Savings Account -Senior Citizen’s Savings Account -Pratham Savings Account -Shakti Savings Account -Param Savings Account -Vishesh Savings Account	-Dynamic Current Account -Business Current Account -Enterprise Current Account	-World Business Account -Truly One Account
Bank of Baroda (BoB)	-Savings Bank Account -Super Savings Account -Baroda Centenary -Savings Account -Baroda Basic Savings Account -Baroda Salary Advantage Saving Account -Baroda Bachat Mitra Baroda Pensioners -Savings Bank Account -Baroda Jeevan Suraksha Savings Account	-Baroda Small Business Current Account -Baroda Premium Current Account -Baroda Advantage Current Account -Baroda Premium Current Account -Privilege	-
digibank by DBS	-digiSavings Account -Domestic Savings Account -NRE/NRO Savings Account	Business Account	-

Types of Bank Accounts in India and their Rate of Interest

Below are the rate of interest applicable on each type of bank account:

Type of Account                             Rate of Interest (p.a.)

Savings Account                               Up to 7%

Current Account                               Not Applicable

Recurring Deposit                             Up to 6.75%

Fixed Deposit                                   Up to 7%

Savings Account Interest Rates

Savings Account is the oldest and most common form of savings. The reason behind people preferring a savings account over any other form of savings is that here the principal amount is always safe no matter how much interest is earned. It can thus be said that the convenience of keeping the money in a bank account and earning interest is also the simplest form of investment.

The minimum balance required to maintain a savings account is subject to change from one bank to another just like the rate of interest. Banks have a certain minimum

balance limit which an account holder has to maintain else he/she has to pay the penalty.

However, with the changes in other banking products, savings account has also seen a major shift from being minimum balance account to zero balance savings account. Many banks now offer zero balance savings account with high-interest rate which is more in demand as compared to the age-old pattern of keeping a few thousands in bank account to avoid penalties. Here is the list of all Indian banks and the features of their savings account.

List of Banks with Zero Balance Savings Account with Interest Rates

Below are the interest rate on some of the top banks with zero balance account facility for a savings account.

Banks	Interest Rate (p.a)
Kotak Mahindra Bank	6%
DBS Bank	7%
State Bank of India (SBI)	4%
Axis Bank	4%
HDFC Bank	4%
YES Bank	6.25%
ICICI Bank	4%

Savings Account Interest Rates April 2019

Below are the interest rate, minimum balance requirement and features of all banks offering savings account in India.

S.No.	Banks	Minimum Balance required (₹)	Rate of Interest (p.a.)	Features
1	Allahabad Bank	1000	3.50%-4%	-Only for individuals -Initial Deposit- NIL -Minimum Balance- NIL -No charge will be levied for non-operation/activation of in-operative ‘AllBank Saral Savings Account’ -Option to switch to normal SB account and to maintain applicable minimum balance -No charges for closure of account.
2	Andhra Bank	0/5//100/1000	3.50%-4%	-Minimum balance of ₹5/- -No Charges on non maintenance of Minimum Balance -No other service charges -No Restrictions on the number of withdrawals in the account. -No cheque book shall be issued -No ATM / Debit card facility -No ABB facility
3	Axis Bank	0/10000/25000/100000/	3.50%-4%	-Instant Account Number. -Auto FD feature for balances above ₹10,000 -Zero Balance Account -Complimentary online debit card/ Optional physical debit card -Unlimited ATM transactions at all Axis Bank and other banks' ATM -Preferential Pricing on Lockers and De-Mat -₹150 discount on BookMyshow, ₹ 1,000 cashback on Cleartrip App, 2 months free subscription of Airtel Wynk -Minimum 15%* off at our partner restaurants
4	Bank of baroda	0/5/1000	3.50%-4%	-Zero Balance Facility -Unlimited Chequebook Facility -Free Debit Card -Interest on quarterly basis -Individuals eligible to open Savings Account singly / jointly and having attained the age of 18 Years
5	Bank of India	500/5000/10000/20000/100000	3.50%-4%	-Internet Banking facility -Unlimited ATM transactions (Only at BOI ATMs) -Online Income Tax return filing facility -Personalised cheque book on request -Free utility bills payment facility through Epay
6	Bandhan bank	0/2000/5000/25000/100000	4%-6.55%	-24-hour customer care facility -Nomination facility -Complimentary passbook, monthly e-statement, consolidated annual statement, Debit cum ATM card, Net Banking, Phone Banking, Mobile Banking, Electronic Fund Transfer
7	Bank of Maharashtra	1000	4%	-Telebanking facility, SMS Banking facility, Mobile banking facility and Internet Banking are available. -TDS is not applicable for interest earned on the account. -Free Mahabank VISA ATM/Debit Card. -Deposit Insurance Cover upto ₹1 lakh.
8	Canara Bank	500/1000	4%	-ATM-cum-Debit Card, Pass book/Pass sheet, Nomination, Standing Instructions, Cheque Collection, Instant Credit of Outstation Cheque upto ₹15,000/-, Internet & Mobile Banking etc.
9	Central Bank of India	50	3.50%-4%	-An account can be opened with initial deposit of ₹50/-. -Minimum balance of ₹50/- -One cheque book per year free of charge -50 (Fifty) withdrawals per year free of charge -Total credits in a year should not exceed ₹1,00,000/- lac and balance in the account should not exceed ₹50,000/- in all accounts taken together
10	Citibank	200000/	3.5%	-Citibank Online Mobile & SMS Banking,CitiPhone Banking, Branch Banking facilities -Free SMS & E-mail alerts. -Zero transaction fee at Citibank affiliated IndianOil outlets.
11	Corporation Bank	0/250/500/2500/15000/100000	3.50%-4%	-40 Free Cheque leaves (per FY), Rs. 4/- per additional leaf -Interest paid quarterly -Instant Debit card, Internet Banking -SMS/ Mobile Banking & IMPS -Any Branch Banking -Personalized Cheque Book -Fund Transfer through NEFT & RTGS etc -Mobile Recharge through SMS -LIC Premium payment through internet & ATM -Advance Tax Payment through ATM -E-Payment of Tax -Card to Card fund transfer -Online opening of Deposit [FD/KCC] through internet -Applying IPO through ASBA. -Insurance & Mutual Funds -Email statement -E –passbook -E- mandate -Missed Call Facility -Apna-App -E-purse
12	Dena Bank	0	4%	-‘Basic Savings Bank Deposit Account’ is available to all Indian Residents -No minimum balance requirement -Nomination facility is also available -No charge will be levied for non-operation/activation of the savings account -Debit cum ATM card facility.
13	Dhanlaxmi Bank	0/5/1000/5000/10000/25000	4%-6.5%	-No minimum balance requirement -Door Step Banking facility -Free cash withdrawal from any other banks’ ATM
14	Digibank	0	4%-7%	-Zero balance savings account with no minimum balance charges -India’s First paperless, signatureless and branchless bank -Open Digibank e-wallet within 90 seconds -Convert digibank e-wallet into DigiSavings Account with Aadhaar OTP -Earn up to 7% interest per annum -Unified Payments Interface (UPI) facility to manage all bank accounts -Purchase, track and redeem mutual funds with SIP investments -24X7 Virtual Assistance -Up to 10% cashback from a wide range of online merchants -Free Visa Virtual Debit Card -Make payments using Digibank App -Intuitive Budget Optimizer -Inbuilt security for easy and secure payments
15	Federal Bank	0	3.50%-6.51%	-No Minimum balance requirements -One Free Cheque Book (20 leaves) per financial year -Proprietary ATM card -1 monthly statement free (if not opted for Pass Book) -Account view facility on Fednet (Internet Banking) -Only 4 withdrawals in a month are permitted including branch, ATM, cheque clearing, etc. -Aadhaar based credit of subsidy/government benefits are free of charge.
16	HDFC Bank	2500/5000/10000/25000	3.50%-4%	-Discounts and offers through online shopping -Safe deposit lockers -Customized banking service -No annual maintenance charges for the first year
17	ICICI Bank	0/1000/2000/2500/5000/10000	3.50%-4%	-Choose your own account number -Get added advantages with ICICI EPF account -24*7 Banking service -Mobile Banking and Contactless Mobile Payments
18	IDBI Bank	500/2500/5000	3.50%-4%	-Faster transfer of funds -Online options to pay your bills or tax -Good options to grow money at attractive interest rates Instant Banking -International Debit Card -Demand drafts and Pay order -Easy Payments -Bank on the Move -Profit from your Account -Value Added Services -Travel and Gift Solutions -International Debit cum ATM card -Free five ATM transactions at other Bank ATMs at Non Metro Locations
19	IDFC Bank	25000	4%	-Aadhaar based account opening facility -Free ATM transactions in India -Free VISA signature Debit card -Unlimited fund transfer
20	Indian Bank	250/500/1000	4%	-ECS/RTGS/NEFT facilities are available -No charges for Intra city transactions except cash deposit and cash withdrawal charges at host branches for transactions above ₹50000/- -ATM cards/Debit cards free for the first year -3 transactions Free at ATMs of other Bank in Metro and 5 transactions Free at ATMs of other Bank in Non Metro Areas. -Intra city, intercity transactions, Internet/ mobile /phone banking facilities are available at all branches -Nomination facilities available. -50 withdrawals permitted free per half year excluding debit entries related to ATM / IRCTC transactions /POS / Internet, Mobile transactions and ₹15/- will be charged per transaction over and above the free withdrawals. -No TDS on interest earned on SB deposits
21	Indian Overseas Bank	500/1000	4%	-International VISA Debit Card -Instant Credit of Outstation Cheque upto ₹15,000/- -Internet banking facility. -Multicity Cheque facility -Nomination facility -Standing Instruction Facility Speedy transfer of funds -Anywhere Banking Insurance Product
22	IndusInd Bank	0/10000/25000/2500000	4%-6%	-Reward points on every card transaction -Free monthly e-statement -Insurance and medical discounts -Cashback through Indus Money Program
23	Jammu and Kashmir Bank	0/500/1000	3.50%	-Free cash withdrawals at branch (up to 50 withdrawals per half year). -Free Instant Debit Card issued with an ATM withdrawal limit of ₹0.40 lakh/day & PoS transaction limit of ₹1 lakh. -Nomination facility available. -Free e-banking facility. -Interest paid at quarterly intervals and calculated on daily products
24	Karnataka Bank	0/500/1000/2000	3.50%-4%	-Anywhere Cash deposit at Branch -Free cash deposit at BNA -Cash withdrawal at any branch -SMS alert facility on subscription -Free monthly e-statement -Free 25 Cheque leaves per calendar year -Fastest way of Inter Bank fund transfer through RTGS/NEFT/IMPS -MoneyPlant Visa/Rupay classic Debit Card/EMV Chip card are available for eligible account holders -Free Internet/Mobile Banking facility. -Free Mobile Apps -Interbank fund transfer through IMPS -Demand Drafts from any branch Nomination facility. -Fastest collection of cheques -Account portability facility -Free Missed Call Banking facility -24x7 Customer Care Centre with IVR facility -Free fund transfer within the bank
25	Kotak Bank	0/2000/3000/5000/10000/20000	5-6%	-Digital Bank Account -Open account through Kotak 811 Plan -Instant Account opening with Aadhaar card -Free online transfers (NEFT, RTGS, IMPS) to help you go cashless
26	Lakshmi Vilas Bank	1000/3000/5000	4%-6.50%	-Pass Book facility available -Standing instructions facility is available on a nominal charge. -No restrictions on the number or amount of deposits. -Nomination facility is available
27	Oriental Bank of Commerce	0/500/1000	3.50%-4%	-Free ATM cash withdrawal -Nomination facility available -Free Internet Banking facility
28	Punjab National Bank	500/1000/2000/50000	3.50%-4%	-Interest calculated on daily product basis payable quarterly. -20 free presonalized multi city cheque leaf per half year -Free transfer of fund within PNB accounts -Free internet banking -Transferability of accounts to any P.N.B Branch without changing the account number -Deposits are insured by DICGC ATM Cum Debit card(individuals account) -Fast remittance of funds through NEFT/RTGS -Acceptance of standing instructions -Safe Deposit Lockers available online also. -Online opening of account facility
29	Punjab & Sind Bank	500/1000	3.50%-4%	-Normal banking services available to all -No minimum balance required -ATM cum Debit card facility -Interest Payable on quarterly rest on Daily product
30	South Indian Bank	0/2500/5000	4%	-Accounts can be opened in joint names of family members -First cheque book of 10 leaves free -Unlimited withdrawal facilities -No Income tax deduction at source on interest -Standing instruction for remittance of insurance premium, rent and similar payments carried out -Nomination facility available
31	State Bank of India (SBI)	0/1000/2000/25000	3.50%-4%	-Safe Deposit Lockers as per availability. -Nomination facility is available and recommended. -SMS Alerts and e-Statement facility -Auto sweep facility -Special salary accounts -ATM cum Debit card -Mobile and Internet Banking facility -Banking services on missed call -Personal accident and health insurance cover
32	Syndicate Bank	0/100/500/1000	3.50%-4%	-Indian Residents can open the account -Internet and Mobile banking facility -Free ATM cum Debit card -Customized Debit card facility -SMS alert on transactions
33	UCO Bank	0/100/250/500/1000/1500	3.50%-4%	-No charge will be levied for closure of account within 14 days -Nomination is accepted in favour of a single individual only -Free ATM cum Debit Card
34	Union Bank of India	0/20/100/250/500/1000	3.50%-4%	-Simplest deposit option available to the depositor. - Free ATM cum Debit card -20 leaves of cheque book free per year -Free Accidental Insurance cover by Debit Card usage. -Tabulous Banking facility to open accounts from your home/office -Earn Rewardz points on your Debit card spend -Free Internet Banking facility
35	United Bank of India	0/50/100/500	3.50%-4%	-Nomination facility for quick disposal of balance in case of death of a/c holder(s) -Facility for standing instruction involving credit to another a/c -Cheque book / pass book facility -Opening joint a/c with relatives / partners / etc -Opening of a/c in the name of minor, illeterate, blind, etc Instant credit upto ₹15000 against collection of outstation cheques -Coverage of insurance benefit upto ₹1.25 lac by paying nominal premium of ₹17 per year under United Suraksha Scheme -ATM-cum –Debit card -Safe custody of article facility, safety lockers facility
36	Vijaya Bank	500/1000/2000	3.50%-4%	-An individual can open the account -Non-maintenance of minimum balance attracts charges -Free ATM cum Debit card -ATM withdrawal facility
37	YES Bank	0	5%-6.25%	-Customized savings account facility -Higher rate of interest -Internet and Banking facility available -Mobile and SMS banking -Unlimited access to ATMs -Free Utility Bill payments -Savings Rewards facility

2. Term Deposits

• In these types of accounts, money is deposited for a specific period.
• In this, the interest rate given by the bank is more than the saving account.
• Interest rate slightly higher for senior citizen (60+ years)
• It includes Recurring Deposit and Fixed Deposits. 

Fixed Deposit 

• In this type of deposits, banks accept deposits varying from 7 days to a maximum of 10 years.
• Interest rate varies from bank to bank.
• Pre-withdrawal facility available with some penalties.

Key features of Fixed Deposits

·        Tenure: The maturity period for an FD usually lies within the range of 7 days and 10 years.

·        Based on the tenure Term Deposits are categorized into:

o   Short term FD: 7 days to 1 year

o   Medium term Fixed Deposit: 1 year to 5 years

o   Long term Time Deposit: Above 5 years

·        FD rates: Fixed Deposit schemes come at interest rates usually between 4.00% p.a. to 8.00% p.a.

·        TDS: The interest income is taxed under Tax Deducted at Source (TDS) of the Income Tax Act, 1961.

·        Form 15G or 15H: In case your net income does not fall within the taxable limit, you can apply for tax exemption by submitting Form 15G or 15H.

·        Interest payout: You can choose the frequency of interest payout:

o   Cumulative Fixed Deposit: Interest paid on maturity

o   Non-Cumulative FD: Monthly/Quarterly/Half-yearly/Yearly payouts

·        Loans and overdraft facility: Many banks offer facilities such as loans and overdraft which can be availed against the deposit.

·        Nomination: You can also avail the nomination facility for certain Term Deposit schemes.

·        Premature withdrawal: Most banks charge a penalty for prematurely withdrawing or closing an FD.

·        Auto-renewal of FD: Some Term Deposit schemes come with the option of automatic renewal at the time of maturity.

FD Interest Rates in India 2019

• FD Rates For Top Banks
• Senior Citizens FD Rates
• Small Finance Bank FD Rates
• Non-Banking Financial Company (NBFC) FD Rates
• Tax Saving FD Rates 

Senior Citizen FD Interest Rates in 2019

Name of the bank	Tenure Range	Range of FD rates in % (in p.a.)
State Bank of India (SBI)	7 days to 10 years	6.25% to 7.35%
Axis Bank	7 days to 10 years	3.50% to 8.20%
HDFC Bank	7 days to 10 years	4.00% to 7.90%
ICICI Bank	7 days to 10 years	4.50% to 8.00%
Yes Bank	7 days to 10 years	5.50% to 7.75%
IndusInd Bank	7 days and above	4.25% to 8.50%
DCB Bank	7 days to 10 years	4.50% to 8.55%
Deutsche Bank	7 days to 5 years	4.25% to 8.25%
IDFC Bank	7 days to 10 years	4.50% to 8.75%
Ratnakar Bank	7 days to 20 years	5.50% to 8.55%
Karnataka Bank	7 days to 10 years	4.00% to 8.00%

*The rates of interest for FD schemes tend vary at the discretion of the respective bank. The interest rates are mentioned in this table are valid as of 29 January 2019.

• Most banks offer an additional interest rate-senior citizens on Fixed Deposits.
• The special rates are usually applicable for domestic deposits under Rs.1 crore.
• Highest FD rate for senior citizens 8.55% p.a. by DCB Bank
• Maximum Axis Bank Fixed Deposit rate for senior citizens 8.20% p.a.
• Highest Term Deposit rate for senior citizens by IndusInd Bank and Deutsche Bank are 8.50% p.a. and 8.25% p.a. respectively.

Top 5 Small Finance Bank Fixed Deposit rates

Name of the bank	Tenure Range	Range of FD rates in % (in p.a.)
Jana Small Finance Bank	7 days to 10 years	6.00% to 9.00%
Suryoday Small Finance Bank	7 days to 10 years	4.00% to 9.00%
Utkarsh Small Finance Bank	7 days to 10 years	3.50% to 9.00%
Equitas Small Finance Bank	7 days to 10 years	5.50% to 8.80%
Ujjivan Small Finance Bank	7 days to 10 years	5.00% to 8.60%

*The rates of interest for FD schemes tend to vary at the discretion of the respective small finance bank. The interest rates are mentioned in this table are valid as of 29 January 2019.

• Highest Small Finance Bank Fixed Deposit rates:
• Jana Small Finance Bank: 9.00% p.a. (3 years)
• Suryoday Small Finance Bank: 9.00% p.a. (950 days)
• Utkarsh Small Finance Bank: 9.00% p.a. (456 days to 2 years)

• Tenure range available: 7 days to 10 years
• Maximum FD rate offered by Equitas Small Finance Bank: 8.80% p.a.

Top 5 Non-Banking Financial Company (NBFC) FD rates

Name of the bank	Tenure Range	Range of FD rates in % (in p.a.)
Bajaj Finserv Ltd.	1 year to 5 years	8.00% to 8.15%
PNB Housing Finance	1 year to 10 years	8.25% to 8.45%
Mahindra Finance	15 months to 40 months	8.30% to 9.00%
Shriram Transport Finance	1 year to 5 years	7.95% to 8.88%
LIC Housing Finance	1 year to 5 years	8.15% to 8.30%

*The rates of interest for FD schemes tend vary at the discretion of the respective NFBC. The interest rates are mentioned in this table are valid as of 29 January 2019.

• Highest NBFC FD rate is offered by Mahindra Finance: 9.00% p.a. (33 months)
• Second highest NFBC FD rate: 8.88% p.a. by Shriram Transport Finance Ltd.
• Minimum maturity period: 1 year

Top 5 banks for Tax Saver Fixed Deposit

Name of the bank	Tenure Range	Range of FD rates in % (in p.a.)
IDFC Bank	5 years	8.25%
Deutsche Bank	5 years	8.25%
RBL Bank	5 years	7.60%
Lakshmi Vilas Bank	5 years	7.75%
ICICI Bank	5 years	7.25%

*The rates of interest for FD schemes tend-vary at the discretion of the respective NFBC. The interest rates are mentioned in this table are valid as of 29 January 2019.

• Highest Tax Saver FD rate: 8.25% p.a. by IDFC Bank and Deutsche Bank
• 7.60% p.a. is offered by RBL Bank Ltd.

• Tax Saver FDs come with tax exemptions as mentioned in Section 80 C of the Income Tax Act, 1961.
• The deposit limit-avail this exemption is Rs.1.50 lakh in a financial year.

• The scheme typically comes with a lock-in period of 5 years.

Highest 1 year Fixed Deposit rates

The highest FD rate for 1 year Fixed Deposit is offered by Ratnakar Bank and IndusInd Bank i.e. 8.00% p.a.

• Bandhan Bank: 7.35% p.a.
• Karnataka Bank: 7.50% p.a.
• Lakshmi Vilas Bank: 7.60% p.a.
• Ratnakar Bank: 8.00% p.a.
• IndusInd Bank: 8.00% p.a.

Top 2 year Term Deposit rates offered by banks

• Bandhan Bank: 7.40% p.a.
• Karnataka Bank, IndusInd Bank, IDFC Bank & DCB Bank: 7.50% p.a.
• South Indian Bank & Lakshmi Vilas Bank: 7.60% p.a.
• Deutsche Bank: 8.00% p.a.
• Ratnakar Bank: 8.05% p.a.

3 year Term Deposit interest rates

• ICICI Bank, IndusInd Bank & Deutsche Bank: 7.50% p.a.
• South Indian Bank & Ratnakar Bank: 7.60% p.a.
• Lakshmi Vilas Bank: 7.75% p.a.
• IDFC Bank: 8.00% p.a.
• DCB Bank: 8.05% p.a.

4 year Fixed Deposit interest rates

• ICICI Bank: 7.25% p.a.

• IndusInd Bank & Deutsche Bank: 7.50% p.a.
• Ratnakar Bank: 7.60% p.a.
• DCB Bank & Lakshmi Vilas Bank: 7.75% p.a.

• IDFC Bank: 8.25% p.a.

Recurring Deposit

·        Recurring deposit account Recurring deposit account can be opened by a customer who wants to save a certain amount of money regularly for a specific period and get a higher interest rate. In recurring deposit account, a settled amount of money is deposited for a specific period for every month, and the total amount refunded with interest at the end of the particular fixed time. The minimum period of deposit is six months and maximum ten years. The interest rates change for different plans based on the amount one saves and the period and also on banks. No withdrawals are allowed from the recurring deposit account.

• In this type of accounts, banks accept a fixed amount from a customer in fixed installments in regular interval of time.
• Deposit period varies from six months to ten years.

Interest Calculation for Recurring Deposit Scheme

The interest rate for a recurring deposit scheme is calculated based on various factors like the money that your deposit every month, the tenure and the RD scheme that you choose. Generally, the interest rate for RD is the highest when you invest for a period varying between 15 months to 24 months. Also, higher interest rates are offered for women and senior citizens by select banks for Recurring Deposit accounts. You can use an online Recurring Deposit Calculator to find out the interest that you will accumulate for the given principal and tenure.

Highest Recurring Deposit Interest Rates

Based on the tenure, here are some of the banks that offer best interest rate for RD schemes.

·        Deutsche Bank and Nainital Bank offer an interest rate of 7.25% and 7.50% respectively for recurring deposits of over 5 years tenure.

·        For tenure of 1 year,Nainital Bank and DHFL Bank interest rates are 7.50% and 7.75%.

·        Nainital Bank offers an interest rate of 7.90% for RD scheme with 2 year tenure.

·        For durations of 3 to 4 years, the best interest is offered by Nainital Bank (7.75%), Lakshmi Vilas Bank (7.00%) and Karur Vysya Bank (7.00%).

·        The Recurring Deposit scheme offered by Post Office comes with an attractive interest rate of 7.10%.

Best Recurring Deposit Scheme in India

Here are some of the banks that offer very competitive Recurring Deposit schemes with attractive interest and other features.

·        Allahabad Bank

Allahabad Bank offers an interest rate of 6.50% - 6.60% for tenures ranging from 180 Days to 2 years for Recurring Deposits.

·        ICICI Bank

ICICI Bank has a flexible RD scheme called the iFlexi RD plan. The customer will incur no penalties for delayed monthly payments. The maximum interest rate that is offered for iFlexi RD is 7.10 per cent with tenure options from 13 months to 24 months.

·        HDFC Bank

HDFC Bank offers a maximum interest rate at 7.00% for Recurring Deposit schemes. The tenure varies from 12 months to 120 months. One can invest a minimum amount of Rs 1000 and in multiples of 100 thereafter.

·        J&K Bank

J&K Bank gives an attractive interest rate of 6.75% for period of 1 to 4 years RD schemes. For period of 5 Years and above, the bank offers an interest rate of 6.75%.

·        Axis Bank

Axis Bank RD schemes come with an interest rate of 7.00% for a period of one year to less than 2 years. The recurring deposit can be started with minimum initial deposit amount of Rs 1000 and in multiples of Rs 500 thereafter.

Interest Rates offered By Banks for Recurring Deposits

Here is a list of interest rates offered for recurring deposit schemes by various banks. The interest rates for RD has been grouped according to the tenure and the bank. The interest rates are subject to frequent change, do enquire with the concerned bank before starting a RD account.

Bank	1 Years	2 Years	3 Years	4 Years	5 Years	5+ Years
Andhra Bank	6.50	6.50	6.25	6.25	6.25	6.25
Allahabad Bank	6.50	6.60	6.50	6.50	6.50	6.50
Axis Bank	6.75	6.25	6.25	6.25	6.25	6.25
Bandhan bank	7.15	6.80	6.80	6.80	6.80	6.40
Bank of Maharashtra	6.25	6.25	6.25	6.00	6.00	6.00
Bank of Baroda	6.60	6.65 To 6.50	6.50	6.50	6.50	6.50
Bank of India	6.25	6.60	6.50	6.30	6.25	6.25
Canara Bank	6.50	6.30	6.20	6.20	6.00	6.00
Central Bank of India	6.50	6.60	6.50	6.50	6.50	6.50
City Union Bank	7.10	6.85	6.85	6.85	6.85	6.70
Corporation Bank	6.25	6.50	6.50	6.50	6.50	6.50
Citi Bank	5.00	5.00	5.00	5.00	5.00	5.00
DBS Bank	6.30	6.40	6.50	6.60	6.70	6.70
Dena Bank	6.50	6.50	6.25	6.25	6.30	6.30
Deutsche Bank	6.00	6.75	6.75	7.00	7.00	7.25
Dhanalakshmi Bank	6.00	6.60	6.50	6.50	6.50	6.50
DHFL Bank	7.75	--	--	--	--	--
Federal Bank	6.7	6.60	6.50	6.50	6.50	6.50
HDFC Bank	6.85	7.00	7.00	7.00	7.00	6.00
Post Office	--	--	--	--	--	7.10
Indian Overseas Bank	6.25	--	6.25	6.00	6.00	6.00
ICICI Bank	6.75	6.75	6.50	6.50	6.50	6.50
IDBI Bank	6.75	6.50	6.25	6.25	6.00	6.00
Indian Bank	6.50	6.25	6.25	6.00	6.00	6.00
Indusind Bank	6.85	6.50 to 6.75	6.50	6.50	6.50	6.50
J&K Bank	6.25	6.75	6.50	6.25	6.25	6.25
Karnataka Bank	6.50	6.85	6.50	6.50	6.50	6.50
Karur Vysya Bank	6.75	6.75	7.00	7.00	7.00	7.00
Kotak Mahindra Bank	6.60	6.75	6.50	6.25	6.25	6.00
Lakshmi Vilas Bank	6.75	6.90	7.00	7.00	7.00	7.00
Nainital Bank	7.50	7.90	7.75	7.75	7.50	7.50
Oriental Bank of Commerce	6.75	6.85	6.50	6.50	6.50	6.50
Punjab National Bank	6.60	6.50	6.50	6.25	6.25	6.25
Punjab and Sind Bank	6.50	6.50	6.50	6.50	6.50	6.50
Saraswat bank	6.35	6.35	6.40	6.40	6.40	6.40
South Indian Bank	6.00	6.75	6.50	6.50	6.50	6.50
State Bank of India	6.70	6.75	6.80	6.80	6.85	6.85
Syndicate Bank	6.15	6.50	6.60	6.60	6.50	6.50
Tamilnad Mercantile Bank Ltd	6.90	7.00	6.90	6.90	6.90	6.90
UCO bank	6.50	6.50	6.40	6.25	6.25	6.25
Union Bank of India	6.75	6.50	6.50	6.50	6.50	6.50
United Bank Of India	6.10	6.00	6.00	6.00	6.00	6.00
Vijaya Bank	6.50	6.60	6.50	6.50	6.50	6.25
Yes Bank	6.75	6.75	6.75	6.75	6.75	6.75

3. Non-Resident Deposits

• These accounts are only held by non-resident Indians.
• Currently, there are three types of Non-Resident Deposits accounts in India.

(a) Foreign currency Non-Resident (Banks): FCNR (B)

• These accounts are only opened and maintained in the foreign currency.
• These accounts can be opened in the following currencies viz., US dollar, Pound Sterling, Euro, Japanese Yen, Canadian Dollar and Australian Dollar.
• Only term deposit is allowed.
• These accounts are non-taxable in India.
• In these accounts, the principal amount and the interest are fully repatriable.
  Repatriable- Defined as sending or bringing money back to the foreign country.

(b) Non-Resident External Rupee Account (NRE)

• These accounts are held in Indian rupee.
• Term deposits and saving deposits are allowed.
• These accounts are also non-taxable in India.
• In these accounts, the principal amount and the interest are fully repatriable.

(c) Non-Resident Ordinary Rupee Account (NRO)

• Anyone individual residing outside India is eligible for NRO Account.
• If Indian resident migrated abroad can shift his account to this category.
• Term deposits and saving deposits are allowed.
• These accounts are taxable in India.
• In these accounts, the principal amount is non-repatriable.
• Interest amount can be repatriable.

4. Other Accounts

(a) DEMAT Account

• DEMAT stands for Dematerialised Accounts.
• These accounts are used to transact shares in electronic format.

(b) Nostro Account

• These accounts are held by Indian Banks in foreign Banks in foreign currency.
• Example- Punjab National Bank has an account in Bank of America in dollars.
• (i) Loro Account
  (a) These accounts are held by a third party bank, other than both banks who are doing the transaction.
  (b) Example: If South Indian bank wants to do some transaction with Bank of America in dollars in the USA. but he doesn't have the account in with Bank of America. State Bank of India has an account with Bank of America in the USA in dollars. If State bank of India does the transaction in the bank of America in the USA on behalf of South Indian bank. In this case, for SBI this account is known as Nostro Account and for South Indian Bank it is known as Loro Account.

(c) Vostro Account

• These accounts are held by foreign banks in India in Indian Rupees.
• Example: Bank of America has an account in Punjab National Bank in Indian Rupees.

(d) Escrow Account

• It is the temporary pass through an account held by third parties during the transaction between two parties.

(e) GILT Account

These accounts are maintained by investors with the Primary dealers for holding their Government securities and Treasury bills in the Demat form.