Banking Basics
Bank Account Types in India
Complete guide to different types of bank accounts in India - features, benefits, eligibility criteria, and how to choose the right account for your needs.
11 min read
Updated Feb 24, 2026
Types of Bank Accounts
Savings Account
Designed for individuals to save money and earn interest
Key Features:
- Earns 2.5-4% interest
- Low minimum balance
- Free ATM withdrawals
- Mobile banking
Best For:Individuals for personal savings
Min Balance:₹1,000 - ₹10,000
Current Account
For businesses and entrepreneurs with high transaction volumes
Key Features:
- No transaction limits
- Overdraft facility
- Multiple authorized signatories
- Business banking features
Best For:Businesses, traders, professionals
Min Balance:₹10,000 - ₹50,000
Salary Account
Special account for receiving salary from employers
Key Features:
- Zero minimum balance
- Higher transaction limits
- Special loan offers
- Free credit card
Best For:Salaried employees
Min Balance:Zero balance
Student Account
Specially designed for students with minimal requirements
Key Features:
- Zero balance
- No annual charges
- Free debit card
- Educational loan benefits
Best For:Students above 18 years
Min Balance:Zero balance
Senior Citizen Account
Tailored for senior citizens with special benefits
Key Features:
- Higher interest rates
- No penalties on premature FD
- Priority service
- Health benefits
Best For:Senior citizens (60+ years)
Min Balance:₱500 - ₹5,000
Joint Account
Account held by two or more individuals together
Key Features:
- Shared access
- Survivor benefits
- Combined saving goals
- Flexible operations
Best For:Family members, business partners
Min Balance:Varies by account type
NRI Account
For Non-Resident Indians to manage finances in India
Key Features:
- Repatriation benefits
- Tax advantages
- Online access
- Multi-currency options
Best For:Non-Resident Indians
Min Balance:₹10,000 - ₹100,000
Fixed Deposit Account
Term deposit with guaranteed returns
Key Features:
- High interest rates
- Fixed tenure
- Tax benefits
- Loan against FD
Best For:Risk-averse investors
Min Balance:₹1,000 minimum deposit
Account Type Comparison
| Factor | Savings | Current | Salary |
|---|---|---|---|
| Interest Rate | 2.5-4% | Usually 0% | 2.5-4% |
| Minimum Balance | ₹1K-10K | ₹10K-50K | Zero |
| Transaction Limit | Limited | Unlimited | Higher than savings |
| Overdraft Facility | Available | Available | Available |
| Best For | Personal savings | Business | Salaried employees |
Documents Required
Identity Proof
- Aadhaar Card
- PAN Card
- Voter ID
- Driving License
- Passport
Address Proof
- Aadhaar Card
- Utility Bills
- Ration Card
- Passport
- Bank Statement
Photographs
- 2-3 recent passport size photographs
Additional Documents
- PAN Card (mandatory)
- Form 16 (for salary account)
- Age proof (for senior citizen/student)
Tips for Choosing the Right Account
Compare Interest Rates
Different banks offer different interest rates on savings accounts. Compare before choosing.
Check Hidden Charges
Look for annual maintenance charges, ATM withdrawal fees, and other hidden costs.
Consider Digital Banking
Choose banks with good mobile banking apps and online services for convenience.
Read Terms Carefully
Understand all terms and conditions, especially regarding minimum balance requirements.
Related Guides
Frequently Asked Questions
Can I have multiple bank accounts?
Yes, you can have multiple bank accounts in different banks or even multiple accounts in the same bank.
What happens if I don't maintain minimum balance?
Banks charge penalties for not maintaining minimum balance, typically ₹100-500 per month.
Can I convert my savings account to current account?
Yes, most banks allow account conversion. You'll need to submit required documents and fulfill eligibility criteria.
Is PAN card mandatory for opening bank account?
Yes, PAN card is mandatory for all bank accounts in India as per RBI regulations.
Which account type is best for students?
Student accounts are best for students as they offer zero balance, no charges, and special benefits.
Ready to Open a Bank Account?
Compare different banks and find the right account type for your needs