What are the types of bank accounts?

Banks in India typically offer these main types of accounts:

• Savings Account: For personal savings with interest earnings and limited transactions
• Current Account: For businesses with no transaction limits but no interest
• Fixed Deposit Account: Lock funds for fixed periods at higher interest rates
• Recurring Deposit Account: Regular monthly deposits for fixed periods
• NRI Accounts: For Non-Resident Indians (NRE, NRO, FCNR accounts)
• Salary Account: Specifically for salary credits, often with zero balance requirements
• Senior Citizen Accounts: Higher interest rates and additional benefits for elders

Each serves different financial needs, so it's worth understanding which combination works best for your situation. Most people start with a savings account and add others as their financial life becomes more complex.

From a practical perspective, here's how I think about different bank accounts:

• Everyday spending: Basic savings account with debit card and net banking
• Emergency fund: Separate savings account you don't touch
• Short-term goals: Recurring deposits for planned expenses
• Long-term savings: Fixed deposits for future big purchases
• Business needs: Current account if you're self-employed or run a business

Many banks now offer specialized accounts like zero balance accounts under Jan Dhan Yojana, women's accounts with additional benefits, and premium accounts for high-net-worth individuals. The RBI website has detailed information about account types and regulations: https://www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=1597