Types of Accounts

-Yash Mehrotra
 Deposit Accounts

• Demand Deposits Accounts:

– Current Account: Account designed for businesses.
– Savings Account: Deposit money & withdraw funds while
earning interest.
• Term Deposits Accounts:
– Recurring Deposit: Depositor deposits a preset amount of
money every month for a fixed time period.
– Fixed Deposit: Lump sum amount deposited at once for a fixed
time period.
• Hybrid/Flexi Deposits: Deposits which combine the
features of demand & term deposits.

• Multi Option Deposit Scheme(MODS): Term Deposits

linked to the Savings or Current Account. You can
withdraw from a MODS account in multiples of 1000 as
per your fund need.
 NRI Account

• What is an NRI Account: An NRI Account is an account

that a Non-Resident Indian (NRI) or Person of Indain
Origin (POI) can open with a financial institution like a
bank.

• Types of NRI Account:

– Non-Resident Ordinary (NRO) Savings/Fixed Deposit Account
– Non-Resident External (NRE) Savings/Fixed Deposit Account
– Foreign Currency Non-Resident (FCNR) Fixed Deposit Account
 Difference between NRO, NRE & FNCR Account

NRE NRO FNCR

Purpose NRE Account is for NRO Account is for FNCR Account is for
depositing income depositing income that depositing earnings in
earned outside India in one earns in India foreign currency in an
India Indian Account
Deposit Currency Foreign Currency Indian Rupee USD, GBP, AUD, SGD,
CAD, CHF, HKD, EUR,
JPY
Withdrawl Currency Indian Rupee Indian Rupee Foreign Currency

Taxation in India Not Taxable in India 30% tax rate applicable Not taxable in India