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Types of deposit schemes available in Indian Banks

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People deposit money in Banks mainly due to the liquidity and safety it offers for their money. Traditionally, banks had mainly 4 types of deposit schemes; Savings Bank Account, Current Account, Recurring Deposit Account and Fixed Deposit or Term Deposit Account. In recent years, owing to increase in competition in the Banking sector, many banks have started to roll new schemes which combine the features of 2 or more deposit schemes and these are given different names by different banks. Types of deposit schemes Savings Bank Account One of the most popular deposit schemes for individual account holders. These accounts are mainly opened for liquidity and safety of funds, along with the convenience of daily expenses, and with the added benefit of interest income. Till 24th Oct 2011, the interest on a savings account was fixed at 4.00% on the basis of the daily account balance and this was under the regulation of the RBI. Post Oct 25th, 2011, RBI has changed the interest rat