Do you know how many types of accounts are in the banking and financial world. Which type of accounts is useful for resident and non- resident Indians.
You must know below the list of accounts used in India for individuals, societies, corporates, businesses, NRIs and NGOs.
What is the Saving account ?
Saving Account : You can save your funds into this account and earn interest on it. Saving accounts have some limitations on withdrawal. Some banks ask to maintain a minimum balance. Some popular saving accounts are
A. Regular saving account
B. Zero balance account
C. Salary account
D. Joint account
E. Senior citizen account
F. Minor account
What is the current account ?
Current Account : This type of account is used by businesses and traders. It provides unlimited withdrawals and deposits. Unlike saving accounts there is no interest paid on amount and also maintain minimum balance in this account.
What is the NRI account ?
NRI Account : It is designed for non resident Indians who manage their financials in India. There are three types of NRI accounts.
- NRE Account
- NRO Account
- FCNR Account
What is the NRE account ?
A. NRE Account : This is called Non Resident External Account. In this type of account where NRIs deposited their earnings in foreign currency from outside India then it converted into INR. The funds( principal and interest) of this account are repatriable (means get back funds in the resident country). Earned interest is tax free in India.
What is the NRO account ?
B. NRO Account : This is called Non Resident Ordinary Account. In this type of account where an NRI earns income like rent, pension and dividend in India which is maintained only in INR. Funds are repatriable with limits and conditions and earned interest is also taxable in India.
What is the FCNR account ?
C. FCNR Account : This is called Foreign Currency Non Resident Account. This account allows an NRI to deposit his earnings in foreign currency without converting into INR. Earned interest is tax free in India also funds are repatriable (principal and interest amount).
What is the FCRA account ?
FCRA Account : This is called the Foreign Contribution Regulation Act Account. This account is used for receiving foreign funds to NGOs, societies and trust in India. For receiving and using foreign funds under foreign contribution regulation acts 2010. This account is registered under FCRA with the Ministry of Home Affairs. The government can monitor to prevent misuse of funds that may harm national interest.
What is the Demat account ?
Demat Account : This is a Dematerialised Account. Demat Account is open through Banks and Stock Brokers like Grow, Zerodha, Angel Broking for buy sell and hold shares through money in the digital form instead of physical form.
The Demat account is opened in CDSL or NDSL where is stored your shares, etf, bonds, and mutual funds safely.