WHAT IS A BANK???

A bank is a financial institution licensed

to receive deposits and make loans.
There are several types of banks
including retail, commercial, and
investment banks.

In most countries, banks are regulated

by the national government or central
bank.

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What is the primary function of a
bank?

The primary function of a bank is

to facilitate financial transactions,
provide a safe place for people to
store their money, offer loans to
individuals and businesses, and
offer various financial services.

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TYPES OF ACCOUNTS IN A
BANK

SAVINGS ACCOUNT
CURRENT ACCOUNT
FIXED DEPOSITS ACCOUNT
RECURRING DEPOSITS ACCOUNT

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 SAVING
ACCOUNT
A savings account is a financial
instrument held with a bank
where accountholders deposit
money in their account and earn
modest interests on it.

People prefer these accounts

because of their ease of use,
safety, reliability, and liquidity.

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EATURES OF SAVINGS ACCOUNT
Account holders earn interests on the amount in their savings account ranging
from 2% to 7%

In most cases, senior citizens get an additional interest rate of 0.5% above
regular interest rates

High liquidity for withdrawing or transferring money as many times as the

account holder wants to ( depends upon the product of the bank)

Accountholders get debit cards or ATM cards that can be used to make
payments, online transactions, or withdraw cash from ATM

Carry out fund transfers using UPI, NEFT, IMPS, or RTGS through net
banking, mobile banking, or by visiting the bank branch

Option to operate the savings account via net banking, mobile banking, phone
banking, or SMS banking

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Current
Account
Current accounts are a type of bank
account that is used by businesses
for day-to-day financial transactions.
They are often used by business
owners and corporations to manage
their finances.
Features of Current
Account
Easy Access
A current account provides customers
with easy access to their funds. This is
because many banks offer debit cards,
online banking and mobile banking
services that make it easy to pay bills or
withdraw funds from an ATM.
Higher Withdrawal Limits
They usually have higher withdrawal
limits compared to other types of
accounts, such as savings accounts. This
means that customers can withdraw
larger amounts of money at once or more
frequently.
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Features of Current Account
Overdraft
Current accounts typically come with an
overdraft facility. This gives account
holders access to extra money in their
account when they need it, to cover
unexpected expenses or to bridge a
cashflow gap. This is especially useful
for businesses that are just starting out.
Bulk payout facilities
Account holders can securely make bulk
payments to customers, vendors or
employees.
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 Salary Account
Salary Account is a type
of Savings Account, in
which the employer of
the account holder
deposits a fixed amount
of money as ‘salary’
every month.

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 Difference between Salary Account and Savings account
A Salary Account is a type of Savings Account, but there are a few differences between two:

Salary Account Savings Account

Can be opened by any eligible
Can be opened only by an employer
individual
Minimum balance needs to be
Zero-balance account
maintained on monthly/quarterly basis
Benefits offered usually have a fee
More benefits to the account holder
attached
Main purpose: monthly credit of
Main purpose: encouraging savings
salary
Interest between 3-6% paid Interest between 3-6% paid

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 Fixed Deposit Account
FD full form is Fixed Deposit. It is type of investment in
which an individual invests a lump sum amount for a specific
period of time with a bank.

The amount deposited in the FD earns interest at a fixed

rate which is set at the time of the account opening.

FD holders can choose to receive the interest earned either

monthly, quarterly, half-yearly or annually as per their
preference.

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RECURRING A Recurring Deposit, also known as an RD,

DEPOSIT
is a term deposit that allows customers to
invest an amount of their choice each month
and easily save money.

ACCOUNT
•Investors can choose the tenure of the
deposit and the monthly payment amount
based on their convenience.

•RD schemes are generally more flexible

than fixed deposit schemes and are
typically preferred by those who want to
start an account to save money and build
a rainy-day fund.

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