You love avoiding long queues outside banks and the hefty paperwork with traditional account opening. Keeping up with your finances without visiting the bank branch is easier and saves time. Thanks to technology and online data security, banking is at your fingertips.

Whether you are a housewife, business owner, college student, retired professional, or Indian living abroad, you need to open a Bank Account to meet all your financial needs. Banks offer customers a range of accounts based on the purpose, transaction frequency, and location. Let us understand them better:

• Current Accounts

It is a deposit account for traders, entrepreneurs, and business owners who make and receive payments more frequently than others. They hold more liquid deposits with no daily transaction limits. You also enjoy the overdraft facility, which allows you to withdraw more than the account balance. You need to maintain a minimum balance to operate it.

You can open an account by deciding which bank you want to open it in, visiting the nearest branch or website, filling out the account application form with your name, address, contact information, and business type, and providing the required documentation. You also need to make an initial deposit. Later, the bank provides the account number, chequebook, Debit Cards, and other essentials.

• Savings Accounts

It is a Regular Account where you earn a minimum interest rate. Here, there is a cap on the number of transactions each month. Banks provide different types of Savings Accounts depending on the depositor, product features, age, purpose of holding the account, etc. These include Regular Savings Accounts, Children’s Savings accounts, Senior Citizens or Women’s Accounts, Institutional Savings Accounts, and Family Savings Accounts.

While differentiating between a Current Account vs Savings Account, assessing your needs and capacity is imperative. Current Accounts are suitable for individuals who carry out frequent money transfers, such as businessmen, firms, companies, organisations, public enterprises, etc. Savings Accounts, on the other hand, are ideal for those earning regular income, like salaried employees.

• Salary Accounts

You open a Salary Account per the tie-up between your employer and the bank. The salaries of all employees get credited to this account at the beginning of the pay cycle. The bank holding the account also maintains reimbursement accounts to credit your allowances.

To open a Bank Account as a salaried employee, you need to fill out a form submitted by your organisation to the bank, provide your information, such as name, address, organisation’s name, and identity proof, verify the documents carefully, and you are set to operate it.

Conclusion

A Savings Account varies from a Current Account in many ways. Both address the user’s financial needs and aid with better money management. You get a Debit Card, Online Banking credentials, and a passbook with all these accounts, enabling you to access them anywhere and anytime without physically visiting the branch.