Define A Saving Bank Account

Is a basic savings bank deposit account (BSBDA) the same as a traditional bank savings account? If no, what is the difference? What is a small account?

BSBDA (Basic savings bank deposit account)In November 2005, RBI issued guidelines for basic banking “no-frills” account with “nil” or very low minimum balance. In simple words, a service or a product is called ‘no frill’ when it is offered at cheap rate by removing the extra features. At present banks do not offer “no frill accounts”As per the RBI notification in 2012,all no frills accounts get converted into Basic savings bank deposit account(BSBDA).Features of BSBDA accounts: No minimum balance.No limit on the number of deposits that can be made in a monthA maximum of four withdrawals are allowed in a month including branches or ATM withdrawalsFacility of ATM card or ATM-cum-Debit Card free of cost.these are subject to KYC requirement.SMALL ACCOUNTThose persons who do not have any of the ‘official valid documents’ can open ‘small accounts’ with banks. A ‘small account’ can be opened on the basis of a self-attested photograph and putting her/his signature or thumb print in the presence of an official of the bank.Features:aggregate deposit should not exceed one lakh rupees in a year.Maximum balance in the account should not exceed fifty thousand rupees at any time. The total of debits by way of cash withdrawals and transfers will not exceed ten thousand rupees in a month.Foreign remittances can not be credited to Small Accounts without completing normal KYC formalities.Small accounts are valid for a period of 12 months initially, extended upto 12 months.Small Accounts can only be opened at CBS linked branches of banks.

What is current account and savings account?

Traditionally in India, there are four main types of bank accounts like the savings account, current account, fixed deposits, and recurring account. But these days there are various types of bank accounts like power savings account, smart deposits etc.What is a bank account?Saving in bank account provides liquidity as one can withdraw money whenever he/she wants. It also offers a number of facilities like a debit card, cheque facility etc.What is Current Account?This type of bank account which is very popular among firms, companies, enterprises, who generally have a high number of transactions. It includes withdrawals, deposits, and contra transactions. They are also known as Demand Deposit Account.This type of account can be opened in most of the commercial banks. Since it is a zero account, it is associated with a huge number of associations on daily basis. As these accounts offer fluidity, they don't offer interest.What is saving account?This type of bank accounts is designed in order to encourage savings. An individual who has regular income such as a salaried employee can benefit from the savings account. People who have short-term goals like a wedding, holiday, new car etc can also benefit from this type of account.Banks offer a limited number of transactions on this type of account. The first five transactions are free. The interest rate charges range from 4%-6%. As there is a limited number of transactions, the holder can save more.Watch the video below to know more about other types of bank accounts:

What is the difference between a savings account and a salary account?

Many people out there think how a salary account is different from a savings account as all the features of them are similar but still are two different accounts.salary account is the account opened by your employer for whom you work or provide your services, to credit your salary. This account is designed for people from the salaried class. Generally, this account is such that there is no need to maintain minimum balance in the account hence it is similar to a zero balance account. However, one should remember that if the salary does not get credited for three consecutive months then it is considered as a savings account and then all the terms and conditions of a saving account are implied.A savings account is an interest-bearing deposit account held at a bank or another financial institution that provides a modest interest rate. Banks or financial institutions may limit the number of withdrawals you can make from your savings account each month, and they may charge fees unless you maintain a certain average monthly balance in the account.

What is the difference between a savings account and a checking account?

Savings accounts (SA) are accounts maintained by financial institutions that pay interest on the savings put in the account. These accounts are generally not used for business transactions. Any individual either single or jointly can open a savings account.The interest rates of SA accounts are higher. There are no maintenance charges for the account. Cheques of only account holder are collected in SA account. Any cash transactions of 10 lakhs and above in a year will be informed to IT department.Current Account is primarily meant for businessmen, firms, companies, public enterprises etc. that have frequent banking transactions daily. A customer can deposit or withdraw any amount of money any number of times in this type of account. Any major individual, two or more individuals in their joint names, Sole Proprietorship Concerns, Partnership Concerns, Hindu Undivided Family, Limited Companies, Clubs, Societies, Trusts, Executors and Administrators, Others – Govt. and semi Govt. bodies, local authorities etc. can open a current account.There is no interest for the account. There are no restrictions on the number of transactions. Cash withdrawals per day exceeds 50000 per day will attract banking cash transaction tax (BCTT) at Re.1 per 1000. Third party cheques will be collected if they are endorsed.The source of funds generated from the current account and savings account  is used by the banks to distribute Home loan, Personal loan etc.

What's the difference between a savings account, a cheque account and a transmission account in South African banking?

Savings AccountThis offers you a basic banking service with which you can make purchases and withdrawals. Usually you can also access your savings account using the bank's smartphone app or website. You will typically get a debit card linked to the savings account which you can use at ATMs and in shops. I don't think you can use these debit cards (backed by VISA Electron or Mastercard Maestro) for internet shopping, but  FNB offers a VISA card on their Smart savings account, which is a cross between a credit card and debit card. It works like a credit card in that you can use it for internet shopping, but like a debit card in that your purchase transactions are deducted from your savings account and the card offers no credit facility.The name "savings account" is a misnomer. It pays very low, and in some cases zero, interest. The interest rate is usually lower than the inflation rate, so  money is actually losing value in a savings account.Cheque AccountI haven't written a cheque in years, not since the advent of electronic banking, but the distinguishing feature of a cheque account is that it comes with a cheque book.  Also, usually, in order to get a credit card, you would need to open a cheque account first. Like credit cards, cheque accounts also usually provide a credit or overdraft facility. And the banks like to provide a whole host of add-ons to cheque accounts, such as travel insurance and garage cards. The latter works like a debit card, but only for fuel. These days you can also use a credit card for fuel purchases. Because of the credit facility that comes with a cheque account and a credit card, these accounts are required (I think) to build a credit record. Usually you earn zero or close to zero interest on a cheque account. Transmission AccountsThis is an old type of account. I doubt that any of the banks still offer new transmission accounts. Practically it functions very similar to a savings account, and is essentially a transacting account, i.e. an account to pay money into, withdraw money from, etc.

What is the difference between saving account cheque and current account cheque?

Current Account facilitates current transactions particularly for business/a firm and are not used for savings, investments. The Current Accounts are opened in the name of business(s). one should have registered company, Firm PAN and other documents to open current account for a business. There could a few differences in the procedure of opening the current account based on a bank. Usually all the directors should be present to open the current account. You can also open a current account with the presence of at least of of the directors but individual PAN and Aadhar card are mandatory.What is the difference between a current and savings bank account?