What are the different Bank Deposits?

DEPOSITS WITH BANKS : Investment of surplus money in bank deposits is quite popular
is among the investors (particularly among salaried people). Banks (co-operative and
commercial) collect working capital for their business through deposits called bank
deposits. The deposits are given by the customers for specific period and the bank interest
on them. In India, all types of banks accept deposits by offering interest. The deposits can
be accepted from individuals, institutions and even business enterprises. The business
and profitability of banks depend on deposit collection. For depositing money in the bank,
an investor/depositor has to open an account in a bank.
Different types of deposit accounts are: (1) Current Account (2) Savings Bank Account (3)
Fixed Deposit Account, and (4) Recurring Deposit Account. At the end of December 2000,
deposits with public sector banks stood at ` 76,89,653 crore. This indicates the use of
bank deposit as a avenue of investment by Indian investors. NRIs and NREs can keep
money in nationalised and other banks as savings or fixed deposits. In case of NRI and
NRE Account, the bank interest is not taxable. Some banks offer one percent higher
interest rate on NRI/NRE accounts.