Complete List of Common Types of Bank Accounts in India

As of 2024, India has over 2.2 billion bank accounts, a testament to the country’s rapid financial inclusion and evolving banking habits. With a robust mix of traditional and digital banking services, choosing the right bank account has become essential for managing personal or business finances effectively. Whether you're a student saving pocket money, a salaried professional, a business owner, or an NRI managing funds back home, there’s a specific type of bank account tailored to your needs.

From high-interest fixed deposits to zero-balance savings options, each account type comes with its own set of features, benefits, and limitations. Understanding these differences not only helps in better money management but also ensures you make the most of what your bank has to offer.

In this blog, we explore the most common types of bank accounts in India—what they’re used for, who they’re meant for, and how they can help you build a smarter financial future.

Different Types of Bank Accounts in India

Below listed are some of the common types of banks accounts offered in India.

1. Savings Account

A Savings Account is the most fundamental banking product for individuals looking to deposit and grow their earnings securely. Along with ATM/debit card access, customers get internet banking, mobile banking, NEFT/IMPS fund transfers, and auto-debit services. While it’s true that Savings Account interest rates are lower compared to deposits, banks like Ujjivan SFB offers high-interest Savings Accounts designed to meet your financial goals.  

2. Fixed Deposit (FD) Account

A Fixed Deposit (FD) is a secure investment tool where you deposit a lump sum amount for a fixed period and earn interest. Tenures span from 7 days to 10 years (for callable deposits). FDs offer guaranteed returns, making them ideal for conservative investors. You can also save on your tax outgo with Tax Saver Fixed Deposit.  Some of the key features of FDs include flexible tenure selection, loan/overdraft facility against the FD, higher interest rates with preferential rates for senior citizens, tax-savings with Tax Saver Fixed Deposit, online FD booking with Video KYC, and more. Ujjivan SFB offers a wide range of FD products that not only offers higher interest rates, but also provides maximum convenience.

3. Current Account

Primarily used by businesses, companies, and self-employed professionals, a Current Account supports high-volume and frequent transactions without higher transaction limit. Unlike savings accounts, current accounts do not earn interest. Some of the key benefits of current accounts include overdraft facility to manage short-term liquidity, cheque book issuance, demand drafts, and online transfers, higher deposit and withdrawal limit, feature-rich Debit Cards, flexibility in choosing deposit limit, etc. Looking for the best current account for your business? Explore Ujjivan’s offerings.

4. Salary Account

A Salary Account is a type of savings account used by employers to credit monthly salaries. It typically comes with zero minimum balance requirements and several employee-centric benefits like free debit card & cheque book, easy fund transfer, no additional charges, etc.

If salary credits stop for a few months (usually 3), the bank may convert it into a regular savings account, which might require maintaining a minimum balance.

5. Recurring Deposit (RD) Account

A Recurring Deposit (RD) allows you to save a fixed amount every month for a predefined period (usually 6 months to 10 years), earning interest comparable to FDs. It’s ideal for those with regular income seeking disciplined savings. Some of the features include higher interest rates compared to savings account, option for auto-debit from savings account, super easy way for disciplined saving.

6. Non-Resident Indian (NRI) Accounts

NRI accounts are tailored for Indians living abroad, allowing them to manage income earned in India or overseas efficiently. There are three main types:

• NRE (Non-Resident External) Account: An NRE Account lets you deposit foreign income . Funds are held in INR and are fully repatriable. The interest earned is tax-free in India
• NRO (Non-Resident Ordinary) Account: An NRO account allows you to deposit income earned in India via rent, dividends, etc. Funds are held in INR, however, the interest earned is fully taxable in India. Repatriation up to USD 1 million per year allowed with tax compliance
• FCNR (Foreign Currency Non-Resident) Account: FCNR accounts allow deposits in foreign currencies (USD, EUR, etc.).There’s no currency conversion risk and the interest-earned is tax-free. It is ideal for long-term savings without INR volatility.

7. DEMAT Account

A DEMAT (Dematerialized) Account is essential for individuals looking to invest in the stock market. It holds shares, bonds, and other securities in electronic format, eliminating the risks associated with physical certificates such as loss, theft, or damage. This account simplifies trading and allows for faster, safer transactions. DEMAT accounts can be categorized into Regular, Repatriable, and Non-Repatriable types based on residency and fund repatriation needs.