There are different types of bank accounts with each serving different purpose. Different type of accounts offer different facilities such as quick withdrawal of money, daily limit of withdrawal, higher interest rate compared to other accounts and so on. Selecting a bank account may appear easy, but it is not. A wrong account could mean more expenses and wastage of time. Few guidelines can help you take the right decision in selecting the bank account that serves the purpose best.
Account that suits your needs
Usually, two most common types of bank accounts are Current account and Savings account.
- Saving Bank Account – A perfect account for short-term saving, this account offers flexible deposit and withdrawal conditions. For such accounts, banks keep a limit on the number of withdrawals that can be made in a specified period. The rate of interest offered on a saving account is nominal, and an individual can keep the track of all the transactions in Passbook.
If you are looking for the flexibility of payment and withdrawal and do not care much about the interest rate, then saving account is perfect for you.
- Current Account – All sorts of businesses, who need liquid fund more frequently, go for the current account. There is only minimum restriction on the withdrawal limit. An individual should only opt for this account if the need to withdraw and deposit the money occurs more than once a day. The holder is allowed to deposit all types of cheques and drafts.
- Packaged Accounts –It is a current account that offers extra services, and charge fees for the same. Extra features offered may include insurance cover, preferential rates on overdrafts and so on.
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