Survey of Various types of Bank Accounts, rate of interest offered Mr. Pinto (name changed on request) of Axis Bank Limited of Nerul Branch was very co-operative when I visited their branch and introduced myself as a 10th Std. student of Ryan International School, Nerul and inform my purpose of visit of carrying out a survey on various types of bank accounts available and commonly used in India. He offered me a place to sit and called for water and request to give him some time to complete his urgent in-hand work. Since the day was Saturday hence visibly the no. f public was less. After half an hour, he turned up, excuse for keep me waiting and then first go thru the paper containing Project Topics. After going thru the entire paper he then greets me for taking the project sincerely and then started narrating the meaning of Bank account, type of Bank Accounts and interest rate offered on various accounts. A bank account is a financial account between a bank and its customer. A bank account can be a deposit account, current account, loan account or any other type of account offered by a bank.
Traditionally banks in India have four types of deposit accounts, namely Current Accounts, Saving Banking Accounts, Recurring Deposits and, Fixed Deposits. However, in recent years, due to ever increasing competition, some banks have introduced new products, which combine the features of above two or more types of deposit accounts, of which, some of them are as under: 1. Savings Account 2. Current Account 3. Recurring Deposit Account 4. Fixed Deposit Account 5. Other Accounts – Corporate Banking ?Loan Account ?Overdraft / Cash Credit ?Demat Account EEFC ?Nostro & Vostro Account 1. Savings Bank Account ?These deposits accounts are one of the most popular deposits for individual accounts. ?These accounts not only provide cheque facility but also have lot of flexibility for deposits and withdrawal of funds from the account. ?Most of the banks have rules for the maximum number of withdrawals in a period and the maximum amount of withdrawal. ?Varying Rate of Interest – Till 24/10/2011, the interest on Saving Bank Accounts was regulated by RBI and it was fixed at 4. 00% on daily balance basis.
However, wef 25th October, 2011, RBI has deregulated Saving Fund account interest rates and now banks are free to decide the same within certain conditions imposed by RBI. ?No Frill account: Under directions of RBI, now banks are also required to open no frill accounts – this term is used for accounts which do not have any minimum balance requirements. ?Although Public Sector Banks still pay only 4% rate of interest, some private banks like Kotak Bank and Yes Bank pay between 6% and 7% on such deposits. ?The interest earned upto Rs 10,000 in a financial year on Saving Bank accounts is exempted from tax.
Types of Savings Account offered by Axis Bank: (1) Axis Bank’s EasyAccess Savings Account. The account is an endeavor by the Bank to understand the consumers’ needs and redefine banking to suit your requirements for a truly comfortable banking experience. EasyAccess Savings Account gives you instant access to your money anywhere, anytime. Possessing a range of unmatched features, it has been devised to better suit the convenience of our eclectic client base. You can avail of all these services with a minimum quarterly average balance of Rs. 10,000 in metro or urban centers, Rs. 5,000 in semi urban centers and Rs. ,500 in rural centers. At Par Cheque Book Debit Card Anywhere Banking Telebanking Internet Banking Free SMS Banking Account Statement Quarterly Interest Free monthly e-statement (2) The Prime Savings Account is the account for you if you want extras on your account. This account comes with enhanced access and higher transaction limits. 4% rate of interest on daily balances, paid quarterly Minimum opening deposit of Rs. 25,000 in metros^ Access to over 10,000 Axis Bank ATMs and 1700 branches free of cost Internet and Mobile Banking access (on all mobile phones). (3) Future Stars Savings Account
This savings account is loaded with unique features as below: This Product can be offered to the children in the category of less than 18 years of age. The account has an average quarterly balance of Rs. 2500/- for branches in Urban / Metro / Semi Urban areas and average quarterly balance will be Rs. 1000/- for branches in Rural areas. The Average Quarterly Balance shall be NIL if a Fixed Deposit of Rs 25,000/- or Recurring Deposit of Rs. 2000/- per month is maintained. The fixed deposit should be for a minimum period of 6 months and the recurring deposit should be for a minimum period of 12 months.
Free personalized cheque book. For Children below the age of 12 years, the account is to be operated by the guardian on behalf of the minor. Free ATM Card with a daily withdrawal limit of Rs 1500/- will be issued in the name of the guardian. Visa Classic Debit Card for children above the age of 12 years will be offered at Issuance Fee of Rs. 95/- and with annual fee of Rs. 100/-. The child of age 12 years and above can also opt for an Image debit card with his / her own attractive picture or any other photo they choose. Automated Facility for transferring funds to the child? s account from the parent? account on a monthly basis. Free Internet banking facility : The idea is to make the child internet savvy and expose them to the online banking environment. Online forums with interactive tutorials and games about money. Free SMS Banking. Free monthly e-statements / Quarterly Physical Statements. (4) The Prime Plus Savings Account is not a regular savings account. Not only does it have additional benefits like enhanced access and higher transaction limits, it also has price discounts and offers a great range of features. 4% rate of interest on daily balances, paid quarterly Minimum opening deposit of Rs. ,00,000 in metros^ Access to over 10,000 Axis Bank ATMs and 1700 branches free of cost Internet and Mobile Banking access (on all mobile phones). (5) Women’s Savings Account. The account is an endeavor by the Bank to understand the consumers’ needs and redefine banking to suit your requirements for a truly comfortable banking experience. Women’s Savings Account gives you instant access to your money anywhere, anytime. With the Women’s Savings Account, you can manage your money and your life and Furthermore Axis Bank’s Women’s Savings Account ensures that you have enough time for all the important things in life. 6) Senior citizen Savings Account. The account is an endeavor by the Bank to understand the consumers’ needs and redefine banking to suit your requirements for a truly comfortable banking experience. Senior citizen Savings Account gives you instant access to your money anywhere, anytime. Axis Bank’s Senior Citizen Savings Account has been designed keeping in mind the fact that a Senior citizen’s banking requirements are wholly different and require special consideration. Banking Privileges Free At-par Cheque book ATM Network
Anywhere Banking Telebanking Internet Banking Free SMS Banking Account Statement Quarterly Interest Free monthly e-statement Free Senior Citizen ID card (7) Pension Savings Bank Account from Axis Bank is specifically, designed for Pensioner’s (Existing & Prospective) of Central Govt. Civil Ministries/ Departments & Defence Ministry keeping in mind the fact that a Pensioner’s banking requirements are wholly different and require special consideration. Benefits Timely communication to the customer on receipt of the PPO
No delays in commencement of pension disbursals – The Bank is handling the disbursement of Pension under a Centralised Pension Disbursement Module wherein the Pensioner records are credited centrally through its Centralised Pension Payment Hub (CCPH) at Mumbai. Timely issue of Form- 16A for tax deducted at source in the immediately previous financial year Timely revisions based on changes in rates of Pension or Dearness Allowance, done centrally from the CCPH Features Zero Balance Savings Account Anywhere Banking – Available at all centers Free Multi-city At Par Cheque Books
Free monthly e-statement Free International Debit-cum-ATM Card for the primary & Joint holder. The account can be opened jointly only with spouse. Personal Accident Insurance Cover of Rs. 2 lakhs [To keep your personal accident insurance cover activated, you should have made a purchase transaction in 365 days prior to the day of the incident & should have maintained an average quarterly balance of Rs 5,000 (urban & metropolitan branches) or Rs 2,500 (rural & semi-urban branches) as the case may be in the two quarters before the date of the incident. * Free Payorder & Demand Draft Internet Banking – Available through “iConnect” Tele-banking – Free, Available 24 hours at select centers Mobile Banking Facility Demat Account – Account opening charges waived Safe Deposit Lockers – Preferential allotment Note The Bank is authorised by RBI and Central Pension Accounting Office (CPAO) for disbursement of Central Civil Pension through its 218 authorised branches across the country. The Bank is authorized by EPFO for disbursement of pension under the Employees Pension Scheme, 1995 in all the branches 8) Axis Bank’s Trust Account is an effort to offer thoughtful banking for people who spend their lives thinking of others. It is a complete banking solution for Trusts, Associations, Societies, Government Bodies, Section 25 companies and NGOs, so that the organisations can devote all of their time to their noble motivations. Features A Savings Account for your Trust with Average Quarterly Balance (AQB) of Rs. 25,000 A multi-city at-par cheque facility with no limit on clearing payments at centers across the country wherever we are present.
Free Anywhere Banking across all our Branches and Extension Counters and over all our ATMs. Free Demand Drafts or Pay Orders as and when required by you to remit funds. Free collection of cheques at outstation locations. Free monthly e-statement Monthly Statement of Account delivered at your doorstep. Facility for collecting donations in your account through our network of Branches and Extension Counters across the country, as well as through iConnect – our Internet Banking facility. Also, Axis Bank can offer the facility to donate funds to your Trust through our Internet Banking facility iConnect to its customers.
An Axis Bank customer can donate any amount to your Trust through the Internet. In such cases, the savings account of the customer gets debited and the savings account of your Trust gets credited with the amount of donation at the same time. At the end of every month, the Bank will provide an MIS giving details of the amount of donations and the name of donor. This will enable the Trust to issue receipts to the donors. Free Internet Banking facility that enables you to view the status of your account, transfer funds and carry out a number of banking activities from the comfort of your home or office.
Investment Advice: Our Financial Advisory Desk will provide portfolio management advice as well as help you undertake investments. Free Demat: To facilitate your investments, we offer a free Demat Account (charges due to NSDL must still be levied) to our esteemed account holders in the Trust or Society segment. Constituent Subsidiary General Ledger (SGL) account: The Constituent Subsidiary General Ledger (SGL) account through which investments in Govt. securities are carried out comes with a host of value-added services: Investment advice related to the customer’s g-sec portfolio
Offer of better rates on sale of government securities from the Bank’s stock of securities Concessions in transaction and service charges. (However charges that have to be directly passed on to the Clearing Corporation of India as part of the Negotiated Dealing System for trading in g-secs cannot be waved – a fact, which will be communicated up front. ) Foreign Contribution (Regulation) Act [FCRA] accounts: The FCRA account enables approved organizations to receive foreign contributions for utilization in their activities in India.
The Bank will provide assistance in the process of documentation and obtaining necessary approvals from Ministry of Home Affairs at New Delhi. (9) Online Trading account : This portal allows you to invest in Equity, Mutual Fund, IPO, NCDs, Mutual fund and Equity SIP. Its intelligent and intuitive features keep all necessary information handy so you don’t have to painstakingly browse multiple windows. Its sharp research and analysis tools help you take well-informed and timely decisions. Experience simplified online investing with AxisDirect. We provide solutions to suit different investment needs and approaches.
So whether you are a beginner, an avid investor or trader you get customised solutions, which match your specific needs. Beginners If you are new to the online trading or don’t understand all the stock market jargon, then AxisDirect is ‘the destination’ for you. Its online training programs, unique & intuitive features and simplified content helps you understand the basics of the stock market, the research products and helps you confidently trade online, even with as little as Rs. 1,000. Investors As an independent investor, you will have access to all the research and trading facilities to execute your trades at the click of a button.
You could be anywhere, anytime* and still manage to place your trades through the internet or by using our ‘Trade on Phone facility’. Our customer service representatives can easily be reached via phone, as well as email. Traders Trading is an art that is mastered with experience and a lot of discipline. As a trader, you cannot afford to miss out on real time opportunities that present themselves in the market hours. You can simplify as well as customise your trading experience using any of our two unique Online Trading Platforms EXE and Applet based, depending on your trading needs. Key Features:
Single account for investing in Equity, Derivatives, Mutual Fund, IPO, NCDs and Bonds, SIPs (Equity & Mutual Fund), Company Fixed Deposits and ETFs. Single platform for multiple exchanges BSE & NSE (Cash & F&O) Market Watch available on Single Screen Multiple Charts with Tick by Tick Intraday and charting powered with various Studies Youcan save his own defined screen as well as graph template User-defined alert settings for Stock Price trigger Shortcut key for swift access to order placements & reports (10) Presenting the first of its kind account, especially crafted to suit the banking needs of professionals functioning as Insurance Agents.
The offering presents a bouquet of benefits coupled with a concessional Average Quarterly Balance maintenance requirement as compared to our other products. You can avail of all of the below mentioned services at a concessional average quarterly balance of Rs. 5,000 in metro/urban centers and Rs. 2,500 in semi urban/rural centers. At Par Cheque Book You can encash the at-par cheques as local cheques at any of our branches pan India, at no extra cost. Drafts are now history. ATM Network This account also entitles you to an International Debit Card with which you can access your account anytime at all our ATMs across the country.
Withdrawals and deposits of both, money as well as cheques, are possible with your Debit Card. And unlike most other ATMs, an Axis Bank ATM allows you to withdraw upto Rs 40,000 per day Anywhere Banking You can do transactions like cash deposits, cash withdrawal, transfers and clearing deposits through any of our branches across the country. Phone Banking Our Phone Banking provides you with a wide range of services over the phone such as account information, balance inquiry, transaction details, status of your cheque (available only during branch business hours) and even statement of account on Fax.
Internet Banking The idea of “your Bank on your desktop” is now a reality with Internet Banking. You can look up for the status of your savings account, request your new cheque book, undertake a range of financial transactions, avail financial advisory services, get information on mutual funds and shop online by just clicking the mouse. Free SMS Banking SMS Banking enables you to bank with us through your mobile phone irrespective of where you are. Avail facilities like balance inquiry, debit or credit alerts, last three transaction details and cheque status. Account Statements
Physical quarterly statements and monthly e-statements are delivered free of cost. Quarterly Interest Every quarter, interest would be credited at the rate of 4% per annum in your account. (11) Youth Account (12) Basic Account The Basic Savings Account comes with a host of features that help you to save and transact easily 4% rate of interest on daily balances, paid quarterly Access to over 10,000 Axis Bank ATMs and 1700 branches free of cost The account comes with a free ATM card with a daily withdrawal limit of Rs 10,000 4 free ATM transactions per month (includes transactions at both Axis and Other bank ATMs) . Current Account ?Current Accounts are basically meant for businessmen and are never used for the purpose of investment or savings. ?These deposits are the most liquid deposits and there are no limits for number of transactions or the amount of transactions in a day. ?Most of the current account is opened in the names of firm / company accounts. ?Cheque book facility is provided and the account holder can deposit all types of the cheques and drafts in their name or endorsed in their favour by third parties. ?No interest is paid by banks on these accounts. ?Banks charge certain service charges, on such accounts. . Recurring Deposit Accounts ?These are popularly known as RD accounts and are special kind of Term Deposits. ?They are suitable for people who do not have lump sum amount of savings, but are ready to save a small amount every month. ?Normally, such deposits earn interest on the amount already deposited (through monthly instalments) at the same rates as are applicable for Fixed Deposits / Term Deposits. ?Under these type of deposits, the person has to usually deposit a fixed amount of money every month (usually a minimum of Rs. 100/- p. m. ). ?Any default in payment within the month attracts a small penalty. Some banks are also offering flexible / variable RD. Under these flexible RDs the person is allowed to deposit even higher amount of instalments, with an upper limit fixed for the same e. g. 10 times of the minimum amount agreed upon. ?These accounts can be funded by giving Standing Instructions by which bank withdraws a fixed amount on a fixed date of the month from the saving bank of the customer (as per his mandate), and the same is credited to RD account. ?Recurring Deposit accounts are normally allowed for maturities ranging from 6 months to 120 months. A Pass book is usually issued wherein the person can get the entries for all the deposits made by him / her and the interest earned. ?Banks also indicate the maturity value of the RD assuming that the monthly instalments will be paid regularly on due dates. 4. Fixed Deposit Accounts ?All Banks in India offer fixed deposits schemes with a wide range of tenures for periods from 7 days to 10 years. ?These are also popularly known as FD accounts. However, in some other countries these are known as “Term Deposits” or even called “Bond”. ?The term “fixed” in Fixed Deposits (FD) denotes the period of maturity or tenor.
Therefore, the depositors are supposed to continue such Fixed Deposits for the length of time for which the depositor decides to keep the money with the bank. ?However, in case of need, the depositor can ask for closing (or breaking) the fixed deposit prematurely by paying a penalty (usually of 1%, but some banks either charge less or no penalty). ?Some banks introduced variable interest fixed deposits. The rate of interest on such deposits keeps on varying with the prevalent market rates i. e. it will go up if market interest rates go and it will come down if the market rates fall. Some of the banks are offering facilities of automatically transferring the amount to Fixed Deposit from Savings Account in excess of the prescribed limit. This prescribed limit can be zero to lacs of Rupees depends on customer to customer. Whenever the customer wishes to withdraw the money, the Fixed Deposit will be automatically pre matured and Interest will be given as per the tenure of the FD. 5. Other type of accounts – Used by businessmen and corporates ?Loan Accounts: They are exactly not in the nature of account but are identified by Loan Identification No. and is shown as advances given by the bank.
This account closes automatically upon full repayment of the loan. ?Overdraft / Cash Credit account: Some banks extend withdrawn of amount in excess of the amount deposited by the customer but within the limit sanctioned by the bank. Bank charge interest only on the overdrawn amount utilised. ?Demat Account: These are account opened by banks for dealing in shares, securities of the listed companies and for trading in commodities ? Exchange Earnings Foreign Currency Account: These are account where the amount received in Foreign Currency by a client is been kept. This is a separate account since it is required by various Laws on India ?
Nostro & Vostro Account: Both these account are used in dealing in Foreign Currency. Nostro Account is an account opened by a Domestic bank in any Foreign bank. For eg. ICICI Bank is having their USD account in JP Morgan Account, Hong Kong. Vostro Account is an account opened by a Foreign bank in any Domestic Bank. For eg. UBS Switzerland is having an account in SBI, India. After narrating various types of accounts and their uses he also provide us the pay-in-slip of various type of accounts for depositing and withdrawing the cash, cancelled cheque of savings bank account, xerox copy of current account and cash credit account cheque book.
He also provides an example of working of the repayment schedule of a Home Loan account of one of their customer. He also advised me to go to their website www. axisbank. co. in to find out various type of services offered by the bank which he has not covered in the entire description. I than thank him for his nice hospitality and sparing his valuable time to explain and make me understand my topic so smoothly and in simple manner. We shake hands, greets each other and I left the bank feeling a sense of more knowledgeable person. The various types of interest rates offered by various banks for various accounts are as under: