What is account type in bank

In India, an account type refers to the specific category of bank account a customer opens based on their financial needs. Each type offers different features regarding interest rates, withdrawal limits, and minimum balance requirements. Common account types include:

• Savings Account: Designed for individuals to park their savings and earn a modest interest.
• Current Account: Primarily for businesses and professionals, offering unlimited transactions without interest.
• Fixed Deposit (FD): Provides higher interest rates for money locked for a specific tenure.
• Recurring Deposit (RD): Allows users to save a fixed amount monthly over a set period.