How to Choose the Best Online Bank Account for Your Needs

Earlier, a bank account was only an option, but now it is a fundamental banking requirement. In fact, it's hard to imagine today's banking world without one. This is because a bank account enables so many possibilities.

It acts as a gatekeeper for your hard-earned money and provides you with anytime access to it. It allows you to make transactions and payments and fulfil your financial needs.

Opening a bank account could be your first step towards getting credit. And it also plays a significant role in income tax filing. So, if you haven't already, open a bank account.

Bank accounts come in many different types. Each differs in terms of eligibility, features, and benefits. Open an account that's appropriate for your personal profile and banking needs.

Different Types of Bank Accounts:

The following are the primary types of bank accounts in India:

1. Savings Account

A Savings Account is a basic account many individuals open. The account encourages saving. You earn a competitive interest rate on your deposit. This grows your savings. You can access a bouquet of banking products and services with the account. They enhance your daily banking experience.

Note: You need to maintain a minimum balance in your Savings account.

2. Current Account

A Current Account is a type of business bank account. It confers higher limits on deposits, withdrawals, and transactions, ensuring your money is secure yet readily accessible. The account also extends valuable services, such as an overdraft facility, which helps you manage unexpected business expenses.

Note: You do not need to maintain a minimum balance in your Current Account.

3. Salary Account

A Salary Account is an employer account in the employee’s name dedicated to salary disbursement. Generally, the employer opens the Salary account at an affiliated bank.  

Note: You do not need to maintain a minimum balance in the Salary Account.

4. Fixed Deposit Account

Fixed Deposit is an effective old-school investment option. You can invest a significant amount for a preferred tenure in the account. Your deposit will earn you modest interest throughout the tenure. This means your deposit will grow over time. This corpus is handy for goal fulfilment and for tackling emergencies.

5. Recurring Deposit Account

The Recurring Deposit Account facilitates savings and wealth creation. You can make regular fixed contributions to the account. Your deposits will earn an attractive interest rate. Your principal deposits and interest collectively will form a considerable financial corpus. This corpus can prove valuable in both prosperous and challenging times.

6. NRI Accounts

According to the governing laws, non-Indian residents (NRIs) cannot bank through Resident Accounts. They need to open specialised NRI bank accounts.

They are of two types: Non-Resident Ordinary (NRO) and Non-Resident External (NRE) Accounts. The NRO Account is useful for securing and growing domestic income. The NRE Account lets you earn a competitive interest rate on your foreign income in India. You hold both accounts in Indian Rupees, enabling you to bank freely in the country.

How to Choose the Best Online Bank Account for Your Needs?

Consider the following to choose a suitable bank account for your needs:

Establish the Purpose of Banking

Each type of bank account serves a specific banking purpose. Hence, clearly define your banking purpose when choosing the right account. Opening a savings account is appropriate if your banking purpose is personal finance management. The Family Savings Account is a viable option to manage your family finances.

Interest-Earning Objective

If earning interest is your goal, open a bank account that offers a competitive interest rate. Typically, all types of Savings Accounts fetch you an interest rate. Note that the Savings Account interest rate differs for each bank and account type. Consider opening an account with a bank offering the most attractive interest rate. This may enhance your interest earning.

Preferred Accessibility

Each bank account has a different level of accessibility. For instance, a Regular Savings Account requires minimum balance maintenance and has very specific account limits. It’s the right account if you have basic accessibility expectations. If you desire better accessibility, opening a Current Account is a viable option because the account has higher account limits.

Matching eligibility

All bank accounts have specific eligibility criteria. Consider opening a bank account for which you qualify. This will make the account opening process hassle-free.

Summing it up

A bank account is a modern banking necessity. It allows you to secure and instantly access your money, make easy withdrawals, and conduct transactions. There are different types of bank accounts. Learn about them. Consider your profile and banking needs to open a suitable bank account.