Deciding the Bank Account you need
Different accounts offer different facilities to the account
holders. But you must know what suits your needs best. banknetindia has given the
characteristics of the basic types of bank accounts on other pages on this site. Most
banks offer standard package accounts to suit various needs. But even they cannot foresee
all types of needs. You can yourself design a package to fit your needs. Ask yourself the
following simple questions before going to the bank (although some banks will help you go
through this process, their advice is likely to be in line with their products):
Do you need the account for private use or business use
Do you merely wish to park some money for a certain period or
you need a running account for regular deposit/withdrawals/payments.
If your answer to the second question is yes, you need to have
a Fixed Deposit account, irrespective of whether the account is for private or business
needs. However, decide in advance, the period for which you are not likely to need the
money. If you happen to need a part of the money before your deposit matures, consider
whether taking an overdraft will be beneficial. As a thumb rule, if the deposit has run
for three-fourth of the period for which it was kept with the bank, taking an overdraft is
advantageous. However, seek your banker's advice with details of deposit.
A running account for business has to be a current account.
For private purposes, it can be either current or savings. For private accounts, ask
Whether you will need to deposit third party cheques in this
If yes, go for a current account, otherwise a Savings Bank account is what you need.
Are you one of the slow and steady accumulators, who believes
in keeping aside a part of his/her monthly income for a rainy day?
If so, a recurring account is what you need to open with your bank.
If you are clear about your needs, you can always customise bank accounts to suit you.