What Are The Different Banking Accounts You Can Hold?

By Author: Kirthy Shetty
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Current account is slightly different from your savings account. Your savings accounts are often associated with your work place. But a current account is a transactional account which allows for multiple transactions such as withdrawals and multiple deposits. In case of savings account there are certain limitations to the withdrawal and deposits made. If you are a student you can hold a current account, they can also be used for business purposes too. The interest rate on current account is lower in comparision to savings account as they allow you more flexibility in terms of withdrawal. It is better to have a savings account if you want better interest rate.

These are basically for transactional purpose and not for savings. However, if you want to have better interest rate there is a way out to you. Hold these accounts in Chartered banking institutions. These are FDIC guaranteed and offer better rates per individual account holder. Opening a Current Account will vary depending up on the bank type. Current Account can be opened in the name of an individual or in joint names of the depositors by filling up the ...
... appropriate forms. Normally the applicant has to visit the bank himself for opening a new account.

Type of accounts that can be held with this are:

Business account
Student account
Joint account.

These joint accounts can be held in combination with other accounts. Students, usually have these type of accounts and they may be charged a minimum fee or no fee. Pay your mobile bills, electric bills and other fees with the help of electronic mode of payment.

How can you withdraw money?

Its mode of withdrawal is similar to your savings type. You can withdraw through cheques, ATM's and electronic debits. You can make direct payments on rent, mortgages, personal loans, mutual funds, power bills or mobile bills etc.
There are two ways in which a current account holder can do this:
Direct Debit: When customers instruct their banks to pay an amount (that is not fixed) to a particular person, it is known as a direct debit. The party that has to withdraw the payment can do so by informing the account holder.
Standing Order: If one instructs the bank in which s/he holds a current account to make a monthly payment of a fixed amount to a particular person, it is known as a standing order. Account holders can also change the amount by intimating the financial institution or bank.

Kirthy Shetty, Platinum Author.
For information on Checking Account and Deposit Account