Bank Accounts

Types of Bank Accounts:

• Bank Accounts are normally classified into three types, which are:
• Current Account
• Savings Account
• Fixed Deposit Account

Current Account:

• This account is mainly for business persons, firms, companies, public enterprises etc and are never used for the purpose of investment or savings.
• There is no limits for number of transactions or amount of transactions in a day.
• No interest is paid by banks and add some service charges on such accounts.

Savings Account:

• This account is most popular for individual or joint accounts.
• Most of the salaried persons, pensioners and students use savings accounts.
• The benefit of this type of  account is banks can pay interest for the savings.
• The rate of interest ranges between 4% to 6% per annul in India.

Fixed Account:

• It also known as FD Account. In this type of account a particular sum of money is deposited in a bank for specific period of time. 
• It’s one time deposit and one time take away (withdraw) account. The money deposited in this account can not be withdrawn before the expiry of period.
• However, in case of need, the depositor can ask for closing the fixed deposit prematurely by paying a penalty. The penalty amount varies with banks.
• A high interest rate is paid on fixed deposits. The rate of interest paid for fixed deposit vary according to amount, period and also from bank to bank.

IFSC Code:

• An IFSC or the "Indian Financial System Code" is an 11 digit code in alpha-numeric format used by the Reserve Bank of India(RBI) to identify all the Bank branches within the NEFT (National Electronic Funds Transfer) network uniquely. 

• The code is of 11 characters. The first part is the first 4 alphabet characters representing the Bank. Next character is 0(zero), this is reserved for future use.The branch code is last six characters.

Cheque Details:

• In bank check we have three different types of numbers. Which are:
• Routing Number
• Account Number 
• Check Number

Routing Number:

• The routing number is a nine-digit number in the lower left-hand corner of the check. 
• The routing number identifies the bank of the account holder, enabling the receiving bank to collect the money from the correct source.
• Enter a name of a bank to find routing number on the internet.Banks often publish routing numbers  on their websites.

Account Number:

• The account number is on the bottom of the check to the right of the routing number, separated from the routing number by a colon. 
• This is the personal account number of the person who wrote the check.
• The number used when depositing money into or withdrawing money from the account.

Check Number:

• The check number is on the upper right-hand corner of the check and follows the account number on the bottom of the check. 
• This is typically a four-digit number. This number identifies the individual check. It enables the account holder to track checks written.