Account Categories
Accounts are broadly categorized into Demand and Time deposits.
CASA (Demand Deposits)
- Savings Account
- Current Account
RAFA (Time Deposits)
- Recurring Deposit (RD) Account
- Fixed Deposit (FD) Account
Detailed Account Types
1. Savings Account
- Primary purpose is for saving.
- Provides interest on the deposited amount.
- No limit on deposits, but has a limit on withdrawals.
- Provides facilities like ATM cards, debit cards, credit cards, etc.
2. Current Account
- Designed for business purposes.
- Does not provide any interest.
- No transaction limits.
- Provides Overdraft (for any purpose) and Cash Credit (for business purpose only) facilities.
3. Recurring Deposit (RD) Account
- Requires a fixed monthly deposit.
- Tenure ranges from 6 months to 10 years.
- Penalty for premature withdrawal is typically a 1% lower interest rate.
4. Fixed Deposit (FD) Account
- Involves a one-time deposit for a fixed period.
- Tenure ranges from 7 days to 10 years.
- Penalty for premature withdrawal is typically a 1% lower interest rate.
5. NRI (Non-Resident Indian) Account
- NRO (Non-Resident Ordinary): For income generated from India. This income is taxable.
- NRE (Non-Resident External): For income generated from the country where the person lives (outside India). This income is tax-free.
6. De-Mat (De-Materialized) Account
- Used for holding shares and stocks in an electronic format.
- Acts as a locker for securities; no money-related transactions occur directly in this account.
7. Senior Citizen Account
- For individuals aged above 60.
- Often comes with benefits like free insurance and higher interest rates.
Net Demand & Time Liabilities (NDTL)
NDTL represents the total deposits a bank holds. It is the net amount left at the end of the day after accounting for all deposits (Demand - SA, CA and Time - RD, FD) and inter-bank liabilities.
Practice Quiz
Test your knowledge!
1. Which of the following account types fall under CASA (Demand Deposits)?
Recurring Deposit & Fixed Deposit
Savings & Current Account
NRI & De-Mat Account
Senior Citizen & RD Account
2. Which account is specifically designed for business purposes and offers an overdraft facility?
Savings Account
Fixed Deposit Account
Current Account
NRO Account
3. What is the time duration for a Fixed Deposit (FD) account?
6 months to 10 years
1 year to 5 years
7 days to 10 years
Only 1 year
4. An NRI generates income from India (e.g., from rent). Which type of account should this income be deposited into?
NRE Account
De-Mat Account
NRO Account
Savings Account
5. What is the main purpose of a De-Mat (De-Materialized) account?
To store physical cash securely
For shares and stocks transactions
For receiving foreign currency
For high-interest savings for senior citizens
6. What does NDTL stand for in banking terms?
Net Demand & Time Liabilities
New Demand & Term Loans
National Deposit & Trust Ledger
Net Daily Transaction Limit