See, bank accounts these days have kinda become a necessity, and you can’t even imagine someone not having a bank account in 2025. That’s just how everything is structured these days like, with the rise of online payments, the need for bank accounts in India is even more. Though, when most people hear about the term “bank account,” they often just think of the basic savings account that you can open with any bank out there. But the thing is, a savings account isn’t the only bank account option; there are more options that you might not even be aware of. So, if you always wanted to know how many types of bank accounts there are in India, what their functions are, what benefits do you get with each option/type, and what the limitations are, then just keep on reading. Here we’re about to get down on just that, so, here we go.
1. Savings Account
Alright, this is by far the classic and most common bank account option, and there is no way that you don’t know about this one. Literally, every bank out there gives you an option to open a savings account with them.
Function: Well, as the name pretty much gives it off, this type of bank account is the one that lets you save your money and earn some interest on it. It’s as simple as that!
Benefits: The first and biggest benefit is that when you deposit your money in a savings account, depending upon the bank, you actually earn some interest on your deposits, which is often between 3% to 6% per year. Other than that, you can also take advantage of products like ATM/Debit cards, net banking, and even UPI.
Limitations: With most banks, though, you’d have to maintain a minimum balance in a savings account, and on top of that, when it comes to withdrawing your money, there may be some limitations on a per-month basis.
2. BSBDA (Basic Savings Account)
Yes, if you read the name of this one, it sounds way too similar to the previous option/type, and the reason for that is because it actually is pretty similar. How?
Functions: Well, this is pretty much the common savings account, but the thing is, you don’t need to maintain a minimum balance.
Benefits: As we already talked about it, this one is particularly popular because of the “zero minimum balance” thing. Other than that, everything is pretty much the same as with a common savings account, like you get to enjoy features such as an ATM card, passbook, internet banking, UPI, etc.
Limitations: Yes, there are some considerable limitations with this one, the first one being that you can’t keep more than ₹50,000 in it, and on top of that, there is a transaction limit of ₹10,000 per month, which can vary bank to bank.
3. Current Account
After savings accounts, the current account is the 2nd most popular option when it comes to basic banking services.
Functions: Well, this one is mostly for the customers who use their account too frequently, like deposits and withdrawals, and that’s why it is a good option for businesses.
Benefits: The best thing about this one is that you can do as many transactions as you want. No limitations there. Just like that, there is no cap on deposits as well. And on top of that, you can withdraw more than your account balance, which is known as an overdraft facility.
Limitations: With this one, you don’t get any interest on deposits. On top of that, there are always high minimum balance requirements.
4. Salary Account
As the name pretty much gives it away, this one is for the salaried people out there.
Functions: It is just known as an account that holds your salary and gives you banking perks.
Benefits: Nothing much, just a zero balance account which comes with freebies like credit cards, loans, etc.
Limitations: No salary for a few months means no benefits anymore. And yes, it’s only for employees.
5. Fixed Deposit (FD)
This one is just a perfect option for those who have some extra money sitting pretty, and they want to earn some extra interest on it while doing the savings.
Functions: Super simple actually, you see, you can lock your money for a fixed time and earn more interest.
Benefits: Nothing much other than just higher interest rates.
Limitations: Well, you can’t just access your money whenever you want, on top of that, the interest you earn is taxable too.
6. Recurring Deposit (RD) Account
Oh, this next one is just a super simple way to save bit by bit every month.
Functions: Well, kinda like FD, but here, you put in a fixed amount every month to earn interest and keep on saving.
Benefits: Good options for small but regular savers. That’s all. And yes, there are fixed interest rates.
Limitations: Well, not much, but keep in mind, you must deposit the same amount every month or else there will be penalties.
7. NRI Accounts
Once again, the name pretty much gives it off, it is for Non-Resident Indians.
Functions: If you earn an income in India as an NRI, then you can’t open a basic bank account; it is this one that you need. Though, there are different variations to that like NRE, FCNR, etc.
Benefits: You get to access your money earned abroad or in India and still save it or earn interest on it.
Limitations: Depending upon which type of NRI account you have, there are different limitations.
8. DEMAT Account
Well, this one is for those who’re into share marketing aka buying and selling shares.
Functions: With this account, you can hold your stocks and securities in digital form.
Benefits: Everything is digital these days, and it has become super simple to buy or sell shares.
Limitations: Nothing much, just that you can’t use it for regular money transactions. There are maintenance charges on an annual basis.
9. Senior Citizen Accounts
If you’re above 60, this one is a special bank account for you.
Functions: This one is just like a basic savings or FD account but with some more benefits.
Benefits: Depending upon the bank, there is extra interest on deposits. And you get to enjoy the priority service.
Limitations: The only limitation is that you must be a senior citizen to open this account.