Types of Bank Deposits Accounts

Savings, Current, Salary, Fixed Deposit, and Recurring Deposit Accounts cater to different financial needs, offering flexibility and tailored benefits.
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3 min
30-August-2025

Bank deposits are more than just a place to park your money—they are the foundation of your financial stability. From handling daily transactions to helping you grow your savings, banks offer different deposit options tailored to varied needs. Whether you want liquidity, safety, or higher returns, understanding these deposit types will help you make smarter financial choices.

Types of bank deposits

Banks in India provide a wide range of deposit accounts that serve different purposes—from saving and transacting to investing for higher returns. Today, you don’t need to carry bundles of cash, thanks to digital banking and deposit options that ensure your money is both safe and accessible.

If you are looking for a safe, long-term option to grow your money, Bajaj Finance Fixed Deposits offer up to 7.30% p.a., significantly higher than most savings accounts. Book FD.

1. Savings account

A savings account is the most common deposit type, designed to store your money securely while earning modest interest (usually 2%–6% p.a.). You can deposit unlimited times and withdraw through ATMs or online banking with ease. Ideal for students, working professionals, and anyone looking to maintain liquidity, this account works like cash at your fingertips, but safer.

For returns higher than savings accounts, consider Bajaj Finance FD—starting with just Rs. 15,000, you can secure guaranteed growth without market risk. Open FD account.

2. Current account

Unlike savings accounts, current accounts are designed for frequent transactions. They don’t offer interest but provide an overdraft facility—allowing withdrawals beyond your available balance. Current accounts are widely used by businesses, corporations, and institutions where transaction volume is high.

Fixed Deposit

  1. Trusted by over 5 lakh customers
  2. Fixed Deposits worth more than Rs. 50,000 crore booked
  3. Rated CRISIL AAA/STABLE and [ICRA]AAA(STABLE)
  4. Up to 0.35% p.a. extra interest offered for senior citizens
  5. Flexible interest payout options available - Monthly, Quarterly, Half-yearly, Annually or at Maturity

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3. Salary account

Salary accounts are opened by employers to credit monthly salaries directly. They’re convenient for both employees and companies, often offering zero or low minimum balance requirements. These accounts ensure hassle-free salary transfers and seamless fund access.

Also read: Current account and savings account

4. Fixed deposit

Fixed deposit or FDs offer interests on deposits locked in for a fixed period. It is a one-time deposit account where a fixed amount is put in for a definite period, both of which are initially decided at the time of account opening. Based on the tenure of your deposit, your interest rate is also decided. Banks usually have different tiers offering interest rates depending on the amount deposited and the tenure for which it is locked in. These accounts offer higher interest rates than a regular savings account.

The cumulative money, that is, the principal amount and the interest, is paid out on the date of maturity. Unlike a savings account, you cannot withdraw the money until maturity. Banks usually levy a penalty in cases of premature withdrawals. Interest earned from fixed deposits is taxable after a certain point.

FD interest rates can vary across financial institutions. Hence, essential research is suggested before the opening of any such account. For example, a Bajaj Finance FD offers interest rates up to 7.30% p.a. Check eligibility.

5. Recurring deposit account

Recurring deposits (RDs) allow you to save monthly by depositing a fixed amount until maturity. This disciplined approach suits individuals aiming to build a savings corpus gradually. At maturity, you receive the total deposits plus interest.

If you prefer lump-sum investments instead of monthly deposits, Bajaj Finance FDs let you invest once and enjoy guaranteed compounded growth over your chosen tenure (12 to 60 months). Open FD.

Fixed deposit variants

Highest Credit Ratings | Trusted with over 1.4 million Deposits | Assured Returns on FD
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Fixed Deposit - 60 Months

INTEREST RATES UP TO
7.30% p.a.
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Fixed Deposit - Senior Citizen

INTEREST RATES UP TO
7.30% p.a.
Invest Online

Fixed Deposit - Age below 60

INTEREST RATES UP TO
6.95% p.a.
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Fixed Deposit - Minor

INTEREST RATES UP TO
6.95% p.a.
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Fixed Deposit - HUF

INTEREST RATES UP TO
6.95% p.a.
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Fixed Deposit - Sole Proprietor

INTEREST RATES UP TO
6.95% p.a.
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Conclusion

Bank deposits—whether savings, current, salary, fixed, or recurring—serve different purposes in financial planning. While savings accounts ensure liquidity and current accounts support daily transactions, FDs and RDs help build disciplined long-term savings.

To secure higher, guaranteed returns, Bajaj Finance Fixed Deposits offer an excellent alternative. With competitive interest rates, flexible tenures, and the highest safety ratings (AAA ratings from CRISIL and ICRA), they are one of the most trusted investment avenues for building wealth steadily. Book FD.

Calculate your expected investment returns with the help of our investment calculators

Investment Calculator

FD Calculator

Sukanya Samriddhi Yojana Calculator

PPF Calculator

Recurring Deposit Calculator

Provident Fund Calculator

Gratuity Calculator

Frequently asked questions

Why should I invest in a fixed deposit when I already have a savings account?

Savings accounts provide liquidity but lower returns (2%–6% p.a.), while FDs offer higher guaranteed interest (up to 7.30% p.a. with Bajaj Finance), making them ideal for long-term growth. Open FD.

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.