Types of Account
1. Savings Account: This type of account was formerly operated via the use of a passbook. Now the use of deposit and withdrawal forms are available. A small amount of money is added by the bank to the savings account holder every month. This money is called interest. The owner gets this interest if he cannot make more than two withdrawals in a month or else it becomes nullified i.e the interest will not be paid on multiple withdrawals from the account. This interest is calculated monthly, quarterly, and yearly.
2. Current Account: This type of bank account is commonly operated by businesses and other groups of individuals and organizations that frequently make use of money. Money can be withdrawn from this account at any time. It is operated with a cheque booklet. This account does not attract any interest rather the owners pay commission to the bank for its services. The bank demands the operators of this account to provide at least two referees who are already customers of the bank for the purpose of identification. The referees have to be provided before a new customer can open an account. Current account allows frequent withdrawals anytime, any day as far as the customer has money in the account.
3. Fixed Deposit Account: This account is also called a time deposit. Money deposited in this account stays for a specific period of time. Individuals and organizations that have excess money at their disposal operate this account. The bank must be given at least seven (7) days Notice before money in this account is withdrawn. Interest is paid to the owners of this account.