Savings deposits account is for an individual accounts. These accounts not only provide cheque facility but also have lot of flexibility for deposits and withdrawal of funds from the account. 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.
The term Fixed Deposit refers to a savings account or certificate of deposit that pays a fixed rate of interest until a given maturity date. Funds placed in a Fixed Deposit usually cannot be withdrawn prior to maturity or they can perhaps only be withdrawn with advanced notice and/or by having a penalty assessed. Once the deposits tenure is over, the bank returns the money to you along with all the interest that it has earned. Other than safe and steady growth, the fixed deposit also offer features like extra interest rates for senior citizens, no limits on how much can be invested in the FD and even tax benefits if the investment is made in a tax saving fixed deposit; all of which make a favourite among investors in the country.
Normally, such deposits earn interest on the amount already deposited (through monthly installments) at the same rates as are applicable for Fixed Deposits/Term Deposits. These are best if you wish to create a fund for your child's education or marriage of your daughter or buy a car without loans or save for the future. 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.
Now some Banks have also introduced a flexible/variable RD. Under these flexible RDs the person is allowed to deposit even higher amount of installments, with an upper limit fixed for the same e.g. 10 times of the minimum amount agreed upon. Such 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. Banks also indicate the maturity value of the RD assuming that the monthly installments will be paid regularly on due dates. In case installment is delayed, the interest payable in the account will be reduced and some nominal
Current Accounts are basically meant for business and cannot be 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 are 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. On the other hand, banks charges certain service charges, on such accounts.
Demat Account is an account that holds all your shares in electronic or dematerialized form. Like the bank account, a demat account holds the certificates of your financial instruments like shares, bonds, government securities, mutual funds and exchange traded funds (ETFs).The Dematerialized account number is quoted for all transactions to enable electronic settlements of trades to take place. Every shareholder will have a Dematerialized account for the purpose of transacting shares.