Different Kind of Accounts 'Nostro Account' A bank account held in a foreign country by a domestic bank, denominated in the currency

of that country. Nostro accounts are used to facilitate settlement of foreign exchange and trade transactions. The term is derived from the Latin word for "ours." Conversely, accounts that are held by the domestic bank in its home country for foreign banks are called vostro accounts, derived from the Latin word for "yours." For example, a U.S. bank may have nostro accounts with one or more Canadian banks. These accounts will be denominated in Canadian dollars, which enables efficient settlement of transactions that are Canadian dollar denominated. Nostro accounts also minimize the exposure of the U.S. bank to undue exchange rate risk. 'Vostro Account' The account that a correspondent bank, usually located in the United States or United Kingdom, holds on behalf of a foreign bank. A vostro account is one in which the domestic bank (from the point of view of the currency in which the account is held) acts as custodian or manages the account of a foreign counterpart. Also known as a loro account. For instance, if a Spanish life insurance company approaches a U.S. bank to manage funds in an account for the Spanish life insurer's behalf, the account would be deemed a vostro account of the insurer. The term vostro is Latin for "yours," thus when translated literally, it means "your account."

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Interest rates Banks are free to determine the interest rate of saving’s and term deposits of maturity of one year and above. e.g.facebook. for any bonafide purpose. sale proceeds of assets in India acquired by way of purchase/ inheritance / legacy inclusive Join us on . recurring or fixed deposit accounts. Such accounts can be opened only by the non-resident himself and not through the holder of the power of attorney. Repatriation Not repatriable except for the following: i) current income ii) up to USD 1 (one) million per financial year (April-March)..even other individuals residing in india can transfer money into an NRI's NRO account. The account can be held jointly by residents.NRE Account In this account rupee denominations can be maintained. current. savings. NRE account may be in the form of savings. NRO Account NRO accounts may be opened / maintained also in the form of rupee denomination could be in the form of current. Taxation Accrued interest income and balances held in NRE accounts are exempt from Income tax and Wealth tax. respectively Currency Account holder is exposed to the fluctuations in the value of INR. Amount held in the NRE account are freely repatriable and you cannot send money by any other means except as remittance from abroad or transfer from another NRE account.com/Emahendras .https://www. out of the balances in the account. The account can opened in the names of two or more non-resident individuals provided all the account holders are persons of Indian nationality or origin. You can transfer money into an NRO account from any account . recurring or fixed deposit accounts. Interest rates offered by banks on NRE deposits cannot be higher than those offered by them on comparable domestic rupee deposits.

Transactions in the suspense account will still appear in the general ledger. Join us on . viceversa. The bookkeeper would classify the transaction in the suspense account until she could determine which patient to attribute the $100 to. Unfortunately. giving the company an accurate indication of how much money it has. she doesn't know which Bob Smith has paid his bill.of assets acquired out of settlement subject to certain conditions. the section of a company's books where unclassified debits and credits are recorded. one of the Bobs stops by the office to pay his bill and leaves $100 cash and his name with the receptionist. However. Suppose a doctor's office has two patients named Bob Smith.com/Emahendras . the receptionist does not ask for his address or account number and when the office bookkeeper returns from lunch. One day at lunch. each with an outstanding balance of $100. funds from NRO to NRE accounts can be transferred. a suspense account is a brokerage account where an investor places cash or short-term securities temporarily while deciding where to invest them for a longer term.https://www. in the value of INR to the extent of interest amount.facebook. interest rates offered by banks on NRO deposits cannot be higher than those offered by them on comparable domestic rupee deposits. In investing. 'Suspense Account' In accounting. However. Interest rates Banks are free to determine their interest rates on savings deposits under Ordinary Non-Resident (NRO) Accounts. The suspense account temporarily holds unclassified transactions while a decision is being made as to their classification. unlike NRE accounts. Currency Account holder is exposed to the fluctuations. Tax is deducted at source in NRO accounts.

provides instant access to funds and allows unlimited withdrawals and deposits. the account holder will be required to deposit more cash or sell a portion of the stock. different currencies may earn different interest rates. like a checking account. you magnify both gains and losses. If the value of the stock drops sufficiently. By using leverage in such a way. too. a call deposit account pays interest.com/Emahendras .Call Deposit Account A bank account for investment funds that offers the advantages of both a savings and a checking account. Depositors may have to meet a minimum balance threshold before they earn any interest. Often. you are investing with your broker's money.https://www. The loan in the account is collateralized by the securities and cash. money market accounts impose a minimum balance for the account to start earning interest. Like a savings account.facebook. dollar. The minimum required balance on a money market account is Join us on . Money Market Account This type of bank account pays interest at a higher rate than the rate paid on interest-bearing savings and checking accounts. a system commonly referred to as banded interest rates. which commonly include the U. Call deposit accounts allow investors to deposit and withdraw funds in several currencies. the euro and the British pound. This flexibility reduces investors' exposure to foreign exchange expenses and currency risk. A call deposit account. Call deposit accounts often have minimum deposit requirements to establish an account and may have minimum daily balance requirements.S. In a margin account. has no fixed deposit period. The rate of interest a call deposit account pays depends on the amount of money in the account. Also. Margin Account A brokerage account in which the broker lends the customer cash to purchase securities.

frequently referred to as certificates of deposit (CDs). The account holder is required to keep his or her money in the account until the specified term is over. In return for this agreement. Often. account holders may be allowed to withdraw their principal funds before their CD matures. deposits.usually higher than that imposed on a checking or savings account. but a penalty is typically charged. Time Deposits. and withdrawals to be processed in any given month. some financial institutions allow account holders to withdraw interest.facebook. the financial institution pays interest to the account. An account of this type will likely allow for only a limited number of checks. are bank accounts that require the account holder to make a deposit and agree to leave funds in the account for a specific amount of time. Many allow account holders to make withdrawals and deposits through automatic teller machines (ATM) as well. Checking Account is a bank account that uses checks as the primary instrument for withdrawing money. interest is not paid on a no-frills bank account. without affecting the principal. You can also use a check to transfer money from your checking account to a bank account at a different financial institution. However. pay bills. withdrawals are limited to six per month. No more than three of these withdrawals can be by check. you can make purchases.https://www. the interest paid on a CD is higher that the rate paid on other types of bank account. financial institutions allow account holders to make as many deposits and withdrawals as they wish. No-Frills Bank Accounts A no-frills bank account may allow the holder to pay bills and cash checks without paying the high fees associated with completing such transactions without an account. Usually. With a money market account. In some cases. Join us on .com/Emahendras . and give or loan money to anyone you choose. With a checking account. In most cases.

funding mechanisms. this account keeps track of transactions related to international assets. Self-directed accounts are usually set up by a brokerage and the investor is charged an amount above trading costs. The other account types used in balance of payments accounting are the current account and the capital account. mutual-savings banks and savings-and-loan associations can offer this type of account to individuals. and general plan design and descriptions.https://www.Negotiable Order of Withdrawal (NOW) Account An interest-earning bank account with which the customer is permitted to write drafts against money held on deposit.facebook.com/Emahendras . The difference between a self directed account and the bank's interest bearing financial instrument is that the investor is in charge of investment decisions. some nonprofit organizations and certain governmental units. Definition of 'Official Settlement Account A type of account used in balance of payments accounting to keep track of central banks' reserve asset transactions with each other. bank deposits and special drawing rights (SDRs). The current account keeps a Join us on . It is the law that established rules and regulations to govern private pension plans. foreign exchange reserves. The official settlement account keeps track of transactions involving gold. Essentially. Typically commercial banks. Also known as a "NOW account". Definition of 'Bank Trust Custodial Account A type of Individual Retirement Account (IRA) allowed by the Employee Retirement Income Security Act of 1974 (ERISA) in which contributions are paid into the bank's interest-bearing financial instruments or a self-directed account. including vesting requirements. ERISA is federal legislation enacted to ensure that pension/retirement plans of employers are fair and secure.

facebook. Canadian Dollar.com/Emahendras .https://www. UK Pound. The capital account records the change in foreign and domestic ownership of assets. Bank branches can open ordinary nonresident accounts in the names of private individuals provided initial deposits for opening the accounts are received from abroad in an approved manner or the initial amount is tendered in foreign currency while on a visit to India or transfer of funds from the existing non-resident account of the same person. Deposits in this account can be made in any of the major currencies like US Dollar. services. Non-Resident Accounts Non-Resident bank accounts are those. FCNR FCNR deposits stands for Foreign Currency Non-Repatriable account deposits. income and transfers. Deutsche Mark. This is a Fixed Deposit Foreign Currency account and not a savings account. foreign nationals and foreign companies in India. Japanese Yen and Euro. which are maintained by Indian nationals and Persons of Indian origin resident abroad.record of a country's imports and exports of goods. and whether the country is a net creditor or net debtor. Join us on .