• A person can open a savings account in a bank with an objective of saving a part of income and earning some interest on the money deposited in the savings account. The customer earns interest depending on the amount he maintains in his account. Generally it is compulsory to maintain a minimum balance as decided by the bank in the savings account. Moreover, generally a person can withdraw money only a limited number of times per month. The account holder can withdraw money with the help of cheque, by filling withdrawal slip or using ATM card.
• A savings account can be opened on an individual name or along with someone as a joint account. One can also register the name of the nominee for the account.
• In savings accounts the bank provides its customers the facility of deposit/withdrawal, issuing cheques, ATM cards, etc.
• Bank gets large deposits through several saving accounts it maintains.

Current account:

• An account opened on an individual’s name or the name of the business for conducting day-to-day business financial transactions is known as a current account. This account is only for businessman.
• No Interest is paid on current accounts and in addition a bank may collect bank charges from the account holder to provide several facilities and i maintain the account. There is no limit on the number of transactions one can perform per month.
• One can also avail loans through current account.

Recurring deposit account:

• A recurring deposit account is opened when one wishes to save some money, deposit it regularly in this account and earn an interest at the end of the account term.
• One needs to compulsorily deposit a predetermined amount every month in this account for a pre-determined period. The bank returns the entire amount along with interest to the account holder at the end of the account term.
• The rate of interest is higher than the savings account and lower or almost near to the interest on fixed deposit accounts.

Fixed deposit account:

• An account opened with an aim of earning fix but high interest for a pre-determined period with a fix amount to be deposited all at once while opening the account is called a fixed, deposit account.
• The interest rate on this account is higher than any account. However, one cannot withdraw the money before the fixed deposit term ends. If one wishes to withdraw he may have to pay some penalty and also his rate of interest will decrease.
• The bank normally does not allow to withdraw before the term matures and hence it pays highest interest on this account.
• The bank guarantees the customer to return him his deposit along with the accumlated interest at the end of the term.