Acknowledgement

Preface
Index
Detailed description of the project topic
Conclusion
Bibliography

1. Savings Account

A Savings Account is one of the most common types of bank accounts, primarily
used for saving money. It offers a safe place to deposit funds while providing easy
accessibility. Savings accounts usually earn interest on the deposited amount,
helping account holders grow their savings over time.
These accounts often have no or minimal transactional restrictions, allowing the
deposit and withdrawal of funds as required. However, some banks may require a
minimum balance to be maintained to avoid charges. Savings accounts are suitable
for emergency funds, short-term goals, or general-purpose savings
Some important features of Savings Account are:
 Interest Earnings: Accrue interest on deposited funds.
 Liquidity: Easy access to funds with minimal restrictions.
 Security: Insured by the government or relevant financial institutions up to a
certain limit.
 Low Minimum Balance: Often requires a low or no minimum balance to
maintain.
 Online Access: Provides online banking for convenient account management
and transactions.

2. Current Account

A Current Account, also known as a transactional account, is typically utilized by

businesses and individuals with frequent financial transactions. This type of account
allows unlimited transactions, including deposits, withdrawals, and transfers.

Current accounts provide features such as check books, debit cards, and online
banking facilities, enabling easy management of day-to-day financial
activities. Unlike savings accounts, current accounts generally do not earn interest
on deposits. They are ideal for business transactions, paying bills, and facilitating
regular monetary exchanges.
Some important features of Current Account are:
 Non-interest Bearing: Typically does not earn interest.
 High Liquidity: Unlimited transactions, suitable for frequent banking needs.
 Overdraft Facility: Offers an overdraft option for short-term borrowing.
 Business Friendly: Ideal for businesses, traders, and firms for managing daily
transactions.
  No Savings Goal: Primarily used for managing cash flow rather than
saving money.

3. Recurring Deposit Account

A Recurring Deposit (RD) Account is designed for individuals who want to save a
fixed amount regularly over a specified period. RD accounts allow account holders
to deposit a fixed sum of money on a monthly basis, typically for a predetermined
tenure.
These accounts often offer attractive interest rates, similar to fixed deposit accounts.
At the end of the tenure, the accumulated amount, along with the interest earned,
is returned to the account holder. RD accounts are useful for individuals who want
to cultivate a disciplined savings habit and earn interest on their regular deposits.
Some important features of Recurring Deposit Account are:
 Fixed Interest Rates: Offers guaranteed returns at a fixed interest rate
throughout the tenure.
 Flexible Tenure: Tenure options range from a few months to several years,
accommodating short and long-term savings goals.
 Regular Savings: Encourages disciplined savings through monthly deposit
requirements.
 Loan Against Deposit: Allows borrowing against the deposit amount for
financial emergencies.
 Premature Withdrawal: Offers the option for early withdrawal, often subject to a
penalty.

4. Fixed Deposit Account

A Fixed Deposit (FD) Account is a popular investment instrument that allows

individuals to deposit a lump sum amount for a fixed period, known as tenure. FD
accounts offer higher interest rates than savings accounts and provide a guaranteed
return on the investment.
The interest rate remains fixed for the entire tenure, ensuring a predictable growth
of funds. However, premature withdrawals from FD accounts may attract penalties
or lower interest rates. Fixed Deposit accounts are suitable for individuals with
surplus funds looking for a low-risk investment option.
Some Important features of Fixed Deposit Account are:
 Guaranteed Returns: Fixed deposit accounts offer predetermined interest rates,
ensuring guaranteed returns on your investment.
 Safety: Considered one of the safest investment options, with minimal risk of
losing the principal amount.
 Flexible Tenures: Offers a range of tenure options, allowing investors to choose
the period that best suits their financial goals.
 Interest Rate Options: Provides options for periodic interest payouts (e.g.,
monthly, quarterly) or reinvestment for compound interest.
  Loan Facility: Many institutions allow you to take loans against your fixed
deposit, offering financial flexibility without breaking the deposit.

5. Salary Account

A Salary Account is a type of bank account specifically designed for employees to

receive their salaries. It is offered by banks in collaboration with employers, who
deposit the employees’ salaries directly into these accounts. Salary accounts
typically come with several benefits, such as zero or minimum balance
requirements, free or discounted services, and access to various banking facilities.
They offer a convenient way for employees to manage their salary funds and
conduct financial transactions. While salary accounts serve as a means to receive
salaries, individuals may convert them into regular savings or current accounts
based on their preferences and banking needs.

Some important features of Salary Account are:

 Zero Minimum Balance: No requirement to maintain a minimum balance.

 Higher Interest Rates: Often offers higher interest rates than regular savings
accounts.
 Free and Unlimited Transactions: Unlimited ATM withdrawals and online
transactions without fees.
 Complimentary Services: Includes free cheque books, debit cards, and demand
draft issuances.
 Overdraft Facility: Access to overdraft up to a certain limit based on salary.

6. DEMAT Account

A DEMAT (Dematerialized) Account is specifically meant for electronically holding

and trading securities. This account eliminates the need for physical share
certificates by converting them into electronic records. DEMAT accounts facilitate
the easy buying and selling of stocks, mutual funds, bonds, and other securities in
the digital format. These accounts are linked to the individual’s bank account and
provide a seamless integration for transactions related to investments in the stock
market.

Some important features of DEMAT Account are:

 Electronic Storage: Safely holds shares and securities in digital format.

 Quick Transactions: Enables faster trading of shares, reducing settlement times.
 Reduced Risks: Minimizes risks related to theft, loss, or damage of physical
certificates.
 Convenience: Offers easy access to investments through online platforms.
  Consolidation: Allows the consolidation of investments under a single account
for better management.

7. NRI Account

NRI (Non-Residential Indian) Accounts are designed for individuals who reside
outside their home country but wish to maintain financial connections and conduct
banking activities in their home country. NRI accounts can be of various types, such
as NRE (Non-Residential External) Account, NRO (Non-Residential Ordinary)
Account, and FCNR (Foreign Currency Non-Resident) Account.
The NRI Accounts are further divided into three types. The three types of NRI
accounts are:
 NRE Accounts: NRE accounts are denominated in Indian Rupees and allow
account holders to maintain and manage their foreign income in India. Funds in
NRE accounts are freely repatriable, meaning they can be transferred back to
the account holder’s foreign country without any restrictions. Interest earned on
NRE accounts is tax-free in India.

 NRO Account: NRO Accounts are also denominated in India Rupees and are
primarily used for managing income earned in India, such as rent, dividends, or
pension. The funds in NRO accounts have limited reparability, subject to certain
conditions. Interest earned on NRO accounts is taxable in India.

 FCNR Account: FCNR accounts allow NRLs to hold and manage foreign
currency in India. These accounts are maintained in major international
currencies such as USD, GBP, EUR, etc. The funds in FCNR accounts are fully
repatriable, and the interest earned is tax-free in India.

NRI accounts provide NRIs with the flexibility to manage their finances in India,
including investments, remittances, and transactions related to their Indian assets.

Some important features of NRI Accounts are:

 Repatriation: Allows for easy transfer of funds abroad.

 Currency Flexibility: Maintains accounts in both Indian Rupees and foreign
currency.
 Tax Benefits: Interest earned is not taxable in India.
 Investment Opportunities: Enables investment in Indian stocks, bonds, and fixed
deposits.
 Joint Holding: Permits joint account holding with another NRI or PIO (Person
of Indian Origin).
Importance of Bank Accounts
Here are some of the key points why Bank accounts are important:
 Security: A bank account provides a safe place to keep your money, protecting it
from theft or loss.
 Convenience: With a bank account, managing finances becomes easier, allowing
for direct deposits, withdrawals, and online transactions.
 Record Keeping: A bank account helps track expenses, income, and financial
progress with detailed statements.
 Access to Credit: Having a bank account often makes it easier to obtain loans
and credit cards, as it establishes financial credibility.
 Financial Services: A bank account gives access to a range of financial services,
including savings options, investment tools, and more, facilitating overall
financial growth and stability.

Conclusion

In summary, bank accounts are indispensable tools for managing finances

efficiently and securely. The different types of accounts available cater to various
financial objectives, allowing individuals and businesses to choose the most suitable
option.
Whether it’s saving for the future, conducting day-to-day transactions, or planning
for retirement, there is a bank account to meet every need. Understanding the
features and benefits of each type of account can empower individuals to make
informed financial decisions and maximize the advantages offered by banking
institutions.

Survey of various Types of Bank accounts and rates Of Interest Offered

INTRODUCTION

A Bank may be defined as a company which collects money from the public in the
form of deposits and lends the same to borrowers. It is an institution that provides
facilities for safe keeping, lending and transfer of money. According to Crowther,
“The banker’s business is to take the debts of other people to offer his own in
exchange and thereby create money.”

According to R.P. Kent, “An organisation whose principal operations are concerned
with the accumulation of the temporarily idle money of the general public for the
purpose of advancing to others for expenditure.”

TYPES OF BANKACCOUNTS
Bank accounts are classified into four different types. They are,1.
Saving Account2.

Current Account3.

Recurring Deposit Account4.

Fixed Deposit Account1.

Saving Account: - A savings account is an interest-bearing deposit account held at a

bank or another financial institution that provides a modest interest rate.2.

Current Account: - Current account is opened by businessmen who have a higher

number of transactions with the bank . It includes deposits, withdrawals and contra
transactions. Current account can be opened in co-operative bank and commercial
bank.3.

Recurring Deposit Account: - In recurring deposit account, a certain fixed amount is

accepted every month for a specified period and the total amount is repaid with
interest at the end of the particular fixed period.4.

Fixed Deposit Account: - The account which is opened for a particular fixed period
(time) by depositing particular amount (money) is known as Fixed(term) Deposit
Account. It means that the deposit is fixed and is repayable only after a specific
period is over.

The interest on the recurring deposit account can be calculated by using the formula:
I = P*n(n+1)2*12 *r100 Where I is the (simple) interest, P is the money deposited per
month, n is the number of months for which the money has been deposited and r is
the (simple) interest rate percent per annum. The maturity value on a recurring
deposit account can be calculated by using the formula: MV = P*N + I

Where MV is the maturity value, P is the money deposited per month, n is the
number of months for which the money has been deposited and I is the simple
interest.

RATES OF INTEREST OFFERED

Planning a Home Budget

INTRODUCTION
A budget is an estimation of revenue and expenses over a specified future period of
time; it is compiled and re-evaluated on a periodic basis. Budgets can be made for a
person, a family, a group of people, a business, a government, acountry, a
multinational organization or just about anything else that makes and spends money.
At companies and organizations, a budget is an internal tool used by management
and is often not required for reporting by external parties.

TYPES OF BUDGET
Sales budget: A sales budget estimates the sales in units as well as the estimated
earnings from these sales. Budgeting is important for any business. Without a
budget companies can’t track process or improve performance.2.

Production budget: A production budget is a financial plan that lists the number of
units to be manufactured during a period. In other words, this is a report that
estimates the number of units that a plant will produce from period to period .3.

Capital budget: Capital budget is used to determine whether an organization's long-

term investments such as new machinery, replacement machinery, new plants, new
products, and research development projects are worth pursuing.

4. Revenue budget: Revenue budget consists of revenue receipts of government and

the expenditure met from these revenues. Tax revenues are made up of taxes and
other duties that the government levies.

PERSONAL BUDGET
A personal budget or home budget - is a finance plan that allocates future personal
income towards expenses, savings and debt repayment. Past spending and personal
debt are considered when creating a personal budget. There are several methods and
tools available for creating, using and adjusting a personal budget. For example, jobs
are an income source, while bills and rent payments are expenses.

HOME BUDGET FORGUPTA FAMILY

 Family’s name : Gupta’s
 No. of Family members : 4
 No. of earning members : 1
 Maid : 1 (part – time)
 No. of children studying : 2
 No. of mobile phones : 3
 No. of Vehicles : 2 ( 1 four wheeler , 1two wheeler )
 House owned
 Designation of earning members :Father: Businessman

FOR THE MONTH OFJANUARY

Category Amount Total income 70000Taxes
10000Actual income 60000House maintenance 3000Grocery + fruits
+vegetables8000Milk 1500Electricity + water 4000Conveyance 500Clothing
2500School fees 8500Entertainment 2000Automobile 2500Mobiles 1000Maid
1000Repairs 1000
Travelling 1500Laundry 500Shopping 2000Stationary 500Medical
2000Grand total 42000Savings 18000Yearly savings 216000
CONCLUSION

By doing this project I got information on “Various types of bank accounts and rate
of interest offered” and “planning a home budget”. I got information about types of
bank accounts, formula to calculate rate of interest, types of budget, what is personal
budget, etc.

INDEX

CERTIFICATE

ACKNOWLEDGEMENT

STUDY OF VARIOUS TYPES OF BANKACCOUNTS AND RATE OF INTEREST

OFFERED

INTRODUCTION

TYPES OF BANK ACCOUNTS

FORMULAE

RATES OF INTEREST OFFERED

PLANNING A HOME BUDGET

INTRODUCTION

TYPES OF BUDGET

PERSONAL BUDGET
HOME BUDGET FOR GUPTA FAMILY

FOR THE MONTH OF JANUARY

GRAPHS

CONCLUSION

BIBLIOGRAPHY

ACKNOWLEDGEMENT

SURVEY OF VARIOUS TYPESOF BANKACCOUNTS AND RATES OF INTEREST

OFFERED

INTRODUCTION

A Bank may be defined as a company which collects money from the public in the
form of deposits and lends the same to borrowers. It is an institution that provides
facilities for safe keeping, lending and transfer of money. According to Crowther,
“The banker’s business is to take the debts of other people to offer his own in
exchange and thereby create money.”

According to R.P. Kent, “An organisation whose principal operations are concerned
with the accumulation of the temporarily idle money of the general public for the
purpose of advancing to others for expenditure.”

TYPES OF BANKACCOUNTS
Bank accounts are classified into four different types. They are,1.

Saving Account2.

Current Account3.

Recurring Deposit Account4.

Fixed Deposit Account1.

Saving Account: - A savings account is an interest-bearing deposit account held at a
bank or another financial institution that provides a modest interest rate.

2. Current Account: - Current account is opened by businessmen who have a higher

number of transactions with the bank . It includes deposits, withdrawals and contra
transactions. Current account can be opened in co-operative bank and commercial
bank.
3. Recurring Deposit Account: - In recurring deposit account, a certain fixed amount
is accepted every month for a specified period and the total amount is repaid with
interest at the end of the particular fixed period.

4. Fixed Deposit Account: - The account which is opened for a particular fixed period
(time) by depositing particular amount (money) is known as Fixed(term) Deposit
Account. It means that the deposit is fixed and is repayable only after a specific
period is over. HERE WE WILL DISSCUS ONLY ABOUTRECURRING DEPOSIT
ACCOUNT.
Where MV is the maturity value, P is the money deposited per month, n is the
number of months for which the money has been deposited and I is the simple
interest.

RATES OF INTERESTOFFERED