US Bank Accounts

Checking account
It is one among the different types of account offered by U.S Commercial
bank, which accepts deposits and provide benefits for the individual. A
individual can deposit unrestricted amount and numerals withdrawals can be
made. A checking account is are very much liquid it means this account
holder can issue any number checks, do any number of withdrawals from
ATM, it allows electronic withdrawals by paring to the account. Interest
rates, usually checking account won’t provide any interest on the deposits,
there are only handful of banks which provides interest on checking
accounts. While the individuals can choose to go with interest baring
checking account or without interest baring checking account. If one choose
the interest baring checking bank account he must be ready to pay penalty if
he did not maintain minimum balance as per the Bank rate minimum balance
for interest baring checking account is 7,123$, it differs based on the interest
provided by the commercial banks and minimum balance for noninterest
checking account is 622$ as per Bank rate 2019. Minimum amount is
basically combined of all the account in that bank and the average service
fees charged is 15$.
The checking account holder who has more balance in his/her account will be
provided “sweep” facility which involves withdrawing huge portion of
money and investing. One can with draw his/her amount and invest overnight
and earn interest and deposit back the whole amount back to checking
account.
A individual can enjoy Overdraft protection, where his/her account won’t
have the required amount to write the check or to purchase debit card, even
then the individual writes the check or make his purchase using debit card
where the difference amount will be covered/payed by the bank. The bank
charges overdraft fees for the individual who has availed this service, which
is usually more, and one can choose checking account with overdraft and
without over draft.
Savings Account
This is one of the common account offered by the commercial banks. Savings
account provide small amount of interest to the depositors. Generally people
tend to deposit there amount in the savings bank account to fulfil there short
term needs, and because of the restrictions lade under this account depositor
will not be allowed to make frequent withdrawals and even can enjoy the
minimal interest accrued on his account as per the US federal law only 6
withdrawal per monthly cycle is allowed and exceeding the limit the may
charge fine. While there is not limit for the amount that should be withdraw
per withdrawal. A individual can deposit to his/her account using ATM
deposits, though mobile banking using the bank app. This account has up to
2,50,000$ federally insured under Federal Deposit Insurance Corporation
(FDIC), means if the bank fails to repay back the depositors there money
FDIC will take up the initiative to pay back the money to the depositors. The
interest earned from this account is a taxable income.

Money market account

This account are the interest baring account. The interest provided under this
account is more than the savings bank account, according to bank rate the
highest interest rate for money market account as on 2019 was 2.01% and for
savings account it was 1.90%. The interest earned is variable interest which
changes on inflation This account provides limited checkwriting and debit
card services and the withdrawals limit is also been laid in this account which
is 6 withdrawals per month. This account is insured under FDIC which
provides security up to 2,50,000$. The reason why money market can offer
more interest than savings account is that banks are permitted to invest in
certificates of deposits, government securities, and commercial papers.

Certificate of deposits
Certificate of deposit is a savings account which holds a fixed amount of
money for a fixed period of time it might be for 6 months, one year or five
years and in exchange the bank pay fixed rate interest which will be
compounded monthly . it provides higher rate of interest than the savings
account deposits. The CD is insured up to 2,50,000$ if its bought through
federally insured bank under FDIC. CD’s is also issued by many brokerage
firms and independent salesperson. These are known as “deposit brokers “
they tend to negotiate a higher rate of interest for a CD by promising the
institution that they will get certain amount of deposits to the institution and
then they tend to offer this brokered CD’s to customer.

UK common type bank accounts

Basic bank account
This account is set up by the UK basically with the intention, that every
individual should hold a bank account. Basis bank account is just like any
other account, any individual who doesn’t qualify for opening the current
account can open this account. This account includes some services which an
individual can enjoy, debit card, online banking, mobile banking. It does not
allow overdraft facility.

Current account
Generally current account is maintained by companies, firms, public
enterprises. People or the companies who does high number of transitions on
regular basis. No interest is paid for this type of account holders. Under this
account there is no limit for the number of withdrawals any number of
withdrawals is allowed with levied transition fees. Cheques, demand drafts
can be issued though one’s own current account and overdraft facility is
allowed for the current account holder means they are allowed to overdraw
from their account up to a certain authorised limit and the bank charges some
charges on the overdrawn amount which depends on the repayment. It
provides all the facility like e-banking and mobile banking, multi-location
fund transfer.

Savings account
Savings are opened by the individual to put their saving in the savings
account. Interest is paid to the depositors, so the savings grow each year.
Savings accounts can be of fixed rate or easy access. Easy access account
means you can withdraw money from your account any time. Fixed rate of
savings accounts usually offer high rate of interest but will lock your money
for the certain time and if you withdraw early you may loose high rate of
interest.

Junior Accounts
Junior accounts are bank accounts for the people aged under 18. Cards are
provided by the banks for the junior accounts holder so that they can make
use of the money which they have saved like cash cards allow the young
person to withdraw money from cash machine they can’t use this cash cards
to make purchases in store . while debit cards allow them to use cash
machines as well as buy in store and online.

INDIAN common type bank accounts

Savings Bank Account

Savings bank deposits accounts are one of the most popular deposits for
individual accounts. These accounts provide cheque facility and also
have flexibility for deposits and withdrawal of funds from the account. Most
of the banks have rules for the maximum number of withdrawals in a period
and the maximum amount of withdrawal, but hardly any bank enforces these.
However, banks have every right to enforce such restrictions if it is felt that
the account is being misused as a current account.
Till 24/10/2011, the interest on Saving Bank Accounts was regulated by RBI
and it was fixed at 4.00% on daily balance basis. However, with effect
from 25th October, 2011, RBI has deregulated Saving Fund account interest
rates and now banks are free to decide the same within certain conditions
imposed by RBI. Although Public Sector Banks still pay only 4% rate of
interest, some private banks like Kotak Bank and Yes Bank pay between 6%
and 7% on such deposits.  From the FY 2012-13, interest earned up to
Rs.10,000 in a financial year on Saving Bank accounts is exempted from tax. 

Current Bank Account

Current Accounts are basically meant for businessmen and are never used for
the purpose of investment or savings.  These deposits are the most liquid
deposits and there are no limits for number of transactions or the amount of
transactions in a day.  Most of the current account are opened in the names of
firm / company accounts.   Cheque book facility is provided and the account
holder can deposit all types of the cheques and drafts in their name or
endorsed in their favour by third parties.  No interest is paid by banks  on
these accounts.  On the other hand, banks charges certain  service charges, on
such accounts.   
The main objective of Current Account holders in opening these account is to
enable businessmen to conduct their business transactions smoothly. There
are no restrictions on the number of times deposit in cash / cheque can be
made or the amount of such deposits. Usually banks do not have any interest
on such current accounts.

Fixed Deposit Account

All Banks in India offer fixed deposits schemes with a wide range of tenures
for periods from 7 days to 10 years. These are also popularly known as FD
accounts. The term "fixed" in Fixed Deposits (FD) denotes the period of
maturity or tenure. Therefore, the depositors  are supposed to continue such
Fixed Deposits for the  length of time for which the depositor decides to keep
the money with the bank. However, in case of need, the depositor can ask for
closing the fixed deposit prematurely by paying a penalty. The rate of interest
for Fixed Deposits differs  from bank to bank unlike earlier when the same
were regulated by RBI and all banks used to have the same interest rate
structure. The present trends indicate that private sector and foreign banks
offer higher rate of interest.

Recurring Deposit accounts

This account is popularly known as RD accounts and are special kind of
Term Deposits and are suitable for people who do not have lump sum
amount of savings, but are ready to save a small amount every month. such
deposits earn interest on the amount already deposited.
Under this type of deposits, the person has to usually deposit a fixed amount
of money every month usually a minimum of Rs.100/- p.m. Any default in
payment within the month attracts a small penalty. However, some Banks
besides offering a fixed instalment RD, have also introduced a flexible or
variable RD. Under these flexible RDs the person is allowed to deposit even
higher amount of instalments, with an upper limit fixed for the same e.g. 10
times of the minimum amount agreed upon. Recurring Deposit accounts are
normally allowed for maturities ranging from 6 months  to 120 months.
An Pass book is usually issued wherein the person can get the entries for all
the deposits made by him/her and the interest earned. Banks also indicate the
maturity value of the RD assuming that the monthly instalments will be paid
regularly on due dates.

Analysis

 The Indian banking sector is regulated by Reserve Bank of India Act

1934 (RBI Act) and the Banking Regulation Act 1949 (BR Act).

 The UK banking sector is regulated by the Prudential Regulation

Authority (PRA), which is part of the Bank of England, the UK central
bank.

 The US banking sector is regulated by Board of Governors of the

Federal Reserve System, Federal Deposit Insurance Corporation,
Office of the Comptroller of the Currency and National Credit Union
Administration. The regulators of banking sector is fragmented widely
in US.

 In India, an Individual can avail debt card if he/she has an savings

account or current account whereas In US and UK, an individual can
avail debit card only if he/she has an checking / current account in any
of the banks.

 In US, a maximum 6/month number of withdrawals or deposits can be

made without sum limit and a charge will be levied for transactions
exceeding than stated. Whereas in India it is somewhere around
3to5/month transactions.