Types of Accounts.

Savings account:

The main purpose of SB a/c is to encourage small savings from the public. Interest paid on SB a/c is 4 percent. Any individual can open SB a/c. An Indian residing at abroad can open a NRI a/c. NRI represents non-resident Indians.

Current account:

It’s a running and active account. No interest is paid on current a/c. Current accounts can be opened on firm names. Even individuals can also open current a/cs. But on firm names you cannot open SB a/c.

Fixed Deposit account:

Amount is kept for a fixed period. Higher rate of interest will be paid on this account.

Recurring deposit:

A fixed amount can be deposited in monthly installments. Interest rate is same as fixed deposits.