What are the three types of Bank account with Definition?

The bank plays an important role in the business organization and individual ones. There are mainly three types of the bank account. They are as follows:

1. Saving Account

Saving bank account is useful in saving a generation, especially for individuals and households It carries a moderate rate of interest on deposit interest is allowed on the lowest credit balance kept in a particular Period. It is not useful for a businessman. For opening the deposit for saving account is provides with a passbook. At the time of withdrawn of money, the depositor is required to present his passbook together with withdrawn form. Nowadays, cheque facility is allowed if a certain minimum balance is maintained by the depositor. It has limited withdrawal facilities.

2. Fixed Deposit Account

In this account, Money is deposited only once and can be withdrawn only after the expiry of the agreed maturity period. The rate of interest is the highest in such account. The fixed deposit is not suitable for a business entity. It is suitable for those who are willing to have a lump sum among with sufficient expect interest after the ceratin maturity period.

3. Current Account

For ordinary Transaction purposes, businessman maintains current accounts with their bankers. They mostly keep money on these accounts and draw cheques in favor of their creditors whenever they're like. Current account in a smoother way than does Transactions through cash. Normally, current account deposits do not earn any interest. On the other hand, If the balance falls below a certain limit, a normal charge is made which a certain limit, a nominal charge is made which is called by the bank charges.

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