The Different Types of Bank Accounts

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World Finance Reviews

      The Different Types of Bank Accounts

 There are many banks accounts offered by the bank some of them are briefly discussed below:

1.     What is Money Market Account?

It is a type of bank account or account of any credit union. This type of account different from the traditional bank accounts, because its officers’ better rate on deposits as compared to other ordinary bank accounts. This account is also known as high paying account. This account is not easy to open because its minimum balance requirement is high as compared to other normal accounts.

2.     Current Account

This term is used in two different ways in the banking sector the current is an account in which profit is not paid by banks is also known as the non-profit account which is used in Muslim countries because they do not prefer to get the interest as per their religious perspective. In economics the current account is used in the trade balance of the country’s economy, normally it records the exports and imports if exports are higher than imports than it will current account surplus and if the exports are lower than the imports than it will be known as the current account deficit.

3.     PLS (Profit /Loss sharing) Saving Account.

This is also a type of bank account in which banks pay flexible interest rates to their customers according to the earnings of banks this type of customers are the owners of the bank the profit and the loss will be shared among them.

4.     Fixed Deposit Account

This is a type of bank account that can be opened in the bank with terms of fixed deposit for a specific period on the fixed interest rate means the customers are not allowed to draw any penny from the account till completion of the specified period, then the fixed interest is being paid to the customers, if they withdraw money from that account before maturity than they will be liable to pay charges to the bank and bear some loss.

5.     Recurring Deposit Account

This is a special type of account opened by the banks. In which the customers are supposed to deposit a fixed amount in fixed intervals such as monthly. The purpose of this account is to provide the facility for middle-class people to save some amount monthly from their income and get some interest on their savings.

6.     Saving Account

This is also a type of account that is opened by the bank. In this account bank pays the fixed interest rate to their customers but they are not bound to keep any fixed level of funds, they will be paid according to the available funds on decided percentage.

These all above mentioned are the types of bank accounts, the customers can open any type of account from the above-mentioned accounts or some banks can offer some other customized type of bank accounts, so before opening an account in the bank we should discuss in detail with the customer service manager of that bank and ask him to inform all type of accounts in detail, then we can decide according to our ease.




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