Banks allow the facility of opening the following types of accounts to suit the needs of different kinds of customers
(i) Saving Account Saving deposit account is meant for individuals who wish to save some amount of money out of their incomes to safeguard their future.
(ii) Current Account Such accounts are opened by businessman. These are also known as demand deposit account because they are payable on demand by the depositors.
(iii) Recurring Deposit Account In such accounts, the account holder is required to deposit a specified sum of money every month. Recurring deposits account are also called cumulative time deposits. It is generally opened for a long period. For example, five years, ten years, etc.
(iv) Fixed Deposit Account In such accounts a lump- sum amount is deposited for a specified time period. For example, for one year, three years, etc. This deposit is repayable after the expiry of this fixed period. Fixed deposits are also called time deposits or long- term deposits.
(v) Multiple Option Deposit Account This account offers multiple options to depositors. It can he a combination of current account or saving account. In this account, the depositor can enjoy the liquidity of saving and current account and rate of interest of fixed deposit rate.