An account is a functional unit, identified by an account number that

serves a particular accounting purpose where one person has primary

responsibility for it.
Accounts include balance sheet accounts and revenue/expenditure
accounts
An account is an element in an accounting system that is used to classify
and summaries measurements of business activity

Recording of transactions of similar nature relating to income, expenditure, assets, and liabilities
at the end of an accounting period of a particular business under appropriate heads as per
principles and rules of accounting in the condensed and classified statement is called account.

Related: Types of Adjusting Entries in Accounting Process

4 Types of Accounts are;

Asset account.

Liability account.

Expenditure account.

Income account.

According to the objective and the principle of the accounting equation accounts are four types;

Asset Account

The account kept classifying the transactions for which the assets increase or decrease is called
asset account.

For example, cash account, building account, furniture account, etc.

Liability Account

The account kept classifying the transactions for which liability increases or decreases is called
liability account.

For example, creditors account, loan account, bills payable account, capital account, etc.

Expenditure Account

The account kept under different heads classifying the various expenditures of a business or
institution is called expenditure account.

For example, salary account, wage account, purchases account, etc.

Income Account
The accounts, kept under different heads having classified die transactions relating to income
properly, is called income account.

For example, sale account, interest received account, rent received account, etc.

Related: Accounting Cycle – 10 Steps of Accounting Process Explained

Beside the above classification according to nature accounts are also classified into the following
three types;

Personal account: The accounts relating to person and organization are personal accounts. For
example, Angel Account, Jamuna and Co. Account, etc.

Asset account which is discussed earlier.

Nominal or income-expenditure account: Accounts relating to income, expenditure, and losses are

nominal or income-expenditure account. For example, purchase expense account, sales

revenue account, salary expense account, rent expense account, etc.

In practice, different formats of accounts are followed.

Among them ‘T’ form and statement form are popular.

Specimens of both the formats are shown below:

‘T’ Formats:

Formatted: Font: (Default) Arial, 13.5 pt, Font color: Custom

Color(RGB(21,21,21))

Statement Form:
Formatted: Font: (Default) Arial, 13.5 pt, Font color: Custom
Color(RGB(21,21,21))

Understatement form, someone prefers to show balance in one money

column instead of showing debit balance column and credit balance
column as shown in the above format.
But this format is easy to detect whether the balance is debit balance or
credit balance.
1. Decide the Type of Bank Account you want to Open

There are several types of bank accounts such as Saving Account, Recurring Account, Fixed Deposit
Account and Current Account. So a decision regarding the type of account to be opened must be
taken.

2. Approach any Bank of choice & meet its Bank Officer

Once the type of account is decided, the person should approach a convenient bank. He has to meet
the bank officer regarding the opening of the account. The bank officer will provide a proposal form
(Account Opening Form) to open bank account.

3. Fill up Bank Account Opening Form - Proposal Form

The proposal form must be duly filled in all respects. Necessary details regarding name, address,
occupation and other details must be filled in wherever required. Two or three specimen signatures
are required on the specimen signature card. If the account is opened in joint names, then the form
must be signed jointly. Now a days the banks ask the applicant to submit copies of his latest
photograph for the purpose of his identification.

4. Give References for Opening your Bank Account

The bank normally required references or introduction of the prospective account holder by any of
the existing account holders for that type of account. The introducer introduces by signing his
specimen signature in the column meant for the purpose The reference or introduction is required
to safeguard the interest of the bank.

5. Submit Bank Account Opening Form and Documents

The duly filled in proposal form must be submitted to the bank along with necessary documents. For
e.g. in case of a joint stock company, the application form must accompany with the Board's
resolution to open the account. Also certified copies of articles and memorandum of association
must be produced.

6. Officer will verify your Bank Account Opening Form

The bank officer verifies the proposal form. He checks whether the form is complete in all respects
or not. The accompanying documents are verified. If the officer is satisfied, then he clears the
proposal form.

7. Deposit initial amount in newly opened Bank Account

A passbook or bankbook is a paper book used to record bank, or building society transactions on a
deposit account.

The Post Office Savings Bank introduced passbooks to rural 19th century Britain

Traditionally, a passbook is used for accounts with a low transaction volume, such as a
savings account. A bank teller or postmaster would write, by hand, the date and amount of
the transaction, the updated balance, and enter his or her initials. In the late 20th century,
small dot matrix or inkjet printers were introduced capable of updating the passbook at the
account holder's convenience, either at an automated teller machine or a passbook printer,
either in a self-serve mode, by post, or in a branch.
TYPES OF LOANS
Personal loan

A personal loan is a perfect solution for many situations in India when you need urgent cash –
weddings, education, traveling, or home renovations. Whether you need to buy a second-hand
vehicle, a laptop or a home appliance, a personal loan covers all your financial needs without
needing you to pledge your assets or use your personal savings.

But if you want to borrow funds without having to go through the hassles of paperwork or waiting
for approvals, MoneyTap offers instant personal loans online for all your financial needs.
MoneyTap’s app-based credit line works just like a personal loan expect that you don’t have to pay
interest on the entire amount disbursed to you!

With MoneyTap, you only pay interest on the amount you withdraw, choose your own EMIs and
repay over a convenient duration of 2 to 36 months.

Home loan

A home loan provides financial help to those who wish to buy a house for themselves and their
loved ones. Home loans are generally long-term loans with tenures ranging from 15 to 30 years. The
typical interest rates for home loans in India start at 8.30%

Education loan

Educations loans can be of great help when you need funding for higher education or for studying
abroad. Education loans typically cover college/university fees, travel cost, library charges, and
course books.

Car loan

Car loan is a secured loan that helps you bring your dream car home. But if you fail to repay the EMIs
on time, the lender will recover the loss by taking your car back.

Credit card loan

You can apply for a credit card loan online and use the card to pay for all the purchases you make.
These purchases need to be repaid at the end of every billing cycle. While credit cards are a very
convenient loan option to manage finances, failure to make payments on time can quickly spiral into
a massive amount of debt.

Two-wheeler loan

A two-wheeler loan allows the borrower to purchase a two-wheeler. It is a short-term loan that can
be repaid in affordable EMIs. But if you do not pay your EMIs on time, the insurer will recover the
loss by taking your two-wheeler.

Business loan

If you have a concrete business plan, then you can approach a bank to fund your business idea.
Different financial institutions and lenders have different criteria for disbursing business loans.
Gold loan

Gold loans are secure loans and so they have lower interest rates. A gold loan is approved after the
evaluation of gold and the assessment of your basic documents. The only downside of a gold loan is
that you may lose your pledged gold to an auction if you fail to repay the loan on time.

Loan against FD

In this case, your fixed deposit is the security so if you have an FD in the bank of ₹ 5 lakh, you can get
a loan of up to ₹ 3 lakh. However, the interest rate for such loans is usually higher than the rate you
are getting on your fixed deposit.

Loan against insurance

If your insurance scheme qualifies for a loan, you can get a loan against your investment which is
used as collateral in this case. Generally, you can apply for a loan only after you have been in the
insurance scheme for 3 years.

Loan against mutual funds

PAY IN SLIP

. A pay-in slip sounds like another term for what is more commonly called a deposit slip. When a
person wants to deposit checks or cash in his bank account he customarily fills out a slip to show the
number of his account, the date, and the details of the deposit. Some deposits will consist of checks,
and the depositor will list each check with the check number and the total amount of the deposit.

A withdrawal slip shows the customer's name, date, account number, and amount of the withdrawal
from his account. This will require his signature. The teller will probably require some proof of
identity. Currently this is shown in most banks with a plastic card which is "swiped" through a little
machine.

Typically banks send the depositor a statement every month showing the "activity" in his account.
This will show the account number, the dates covered by the statement, the deposits made during
that period, the withdrawals made, and the bank's charges, if anything. The statement will also show
the balance as of the date the statement was printed and mailed. "Activity" is the standard term.

However, it should be noted that banks, especially the big ones, are trying to get away from
paperwork and switching over to computer technology. For example, at some banks the customer
can insert his plastic card in the ATM (automated teller machine), punch in his four-digit PIN number
(personal identification number), and deposit cash or checks into the machine without filling out a
deposit slip. Same is true with withdrawals. Some banks no longer mail monthly statements but
make the information available on the Internet with proper protection. They will print out and mail a
statement if requested, and some banks now charge a fee for printed statements. In the future the
banks will probably eliminate deposit slips, withdrawal slips, and paper statements altogether. At
the present time the deposit slips and withdrawal slips are still available on the counters in almost all
banks. Anyone can take these slips, and they could be attached to a term paper as examples.
TECNOLOGY IN BANK

A debit card (also known as a bank card, plastic card or check card) is a plastic payment
card that can be used instead of cash when making purchases. It is similar to a credit card, but
unlike a credit card, the money is immediately transferred directly from the cardholder's bank
account when performing a transaction.

Some cards might carry a stored value with which a payment is made, while most relay a
message to the cardholder's bank to withdraw funds from a payer's designated bank account.
In some cases, the primary account number is assigned exclusively for use on the Internet and
there is no physical card.

In many countries,[where?] the use of debit cards has become so widespread that their volume
has overtaken or entirely replaced cheques and, in some instances, cash transactions. The
development of debit cards, unlike credit cards and charge cards, has generally been country
specific resulting in a number of different systems around the world, which were often
incompatible. Since the mid-2000s, a number of initiatives have allowed debit cards issued in
one country to be used in other countries and allowed their use for internet and phone
purchases.

Debit cards usually also allow instant withdrawal of cash, acting as an ATM card for this
purpose. Merchants may also offer cashback facilities to customers, so that a customer can
withdraw cash along with their purchase.

A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay
a merchant for goods and services based on the cardholder's promise to the card issuer to pay
them for the amounts plus the other agreed charges.[1] The card issuer (usually a bank) creates
a revolving account and grants a line of credit to the cardholder, from which the cardholder
can borrow money for payment to a merchant or as a cash advance. In other words, credit
cards combine payment services with extensions of credit.[2] Complex fee structures in the
credit card industry may limit customers' ability to comparison shop, helping to ensure that
the industry is not price-competitive and helping to maximize industry profits. Due to
concerns about this, many legislatures have regulated credit card fees.[3]

A credit card is different from a charge card, which requires the balance to be repaid in full
each month.[4] In contrast, credit cards allow the consumers a continuing balance of debt,
subject to interest being charged. A credit card also differs from a cash card, which can be
used like currency by the owner of the card. A credit card differs from a charge card also in
that a credit card typically involves a third-party entity that pays the seller and is reimbursed
by the buyer, whereas a charge card simply defers payment by the buyer until a later date.

An automated teller machine (ATM) is an electronic telecommunications device that

enables customers of financial institutions to perform financial transactions, such as cash
withdrawals, deposits, transfer funds, or obtaining account information, at any time and
without the need for direct interaction with bank staff.

ATMs are known by a variety of names, including automatic teller machine in the United
States[1][2][3] (ATM, American, British, Australian, Malaysian, South African, Singaporean,
Indian, Maldivian, Hiberno, Philippines and Sri Lankan English), often redundantly ATM
machine, automated banking machine (ABM, Canadian English[4][5]). Although ABM is
used in Canada, ATM is still very commonly used in Canada and many Canadian
organizations use ATM over ABM.[6][7][8] In British English, the terms cash point, cash
machine, minibank (the official name of the Yorkshire bank ATMs), and "hole in the wall"
are most widely used.[9] Other terms include any time money, cashline, nibank, tyme
machine, cash dispenser, bankomat or bancomat. Many ATMs have a sign above them,
indicating the name of the bank or organisation that owns the ATM, and possibly including
the networks to which it can connect. In Canada, ABMs that are not operated by a financial
institution are known as "white-label ABMs".

According to the ATM Industry Association (ATMIA),[10] there are now close to 3.5 million
ATMs installed worldwide.[11] However, the use of ATMs in Australia is gradually declining
– most notably in retail precincts.[12]

On most modern ATMs, customers are identified by inserting a plastic ATM card (or some
other acceptable payment card) into the ATM, with authentication being by the customer
entering a personal identification number (PIN), which must match the PIN stored in the chip
on the card (if the card is so equipped), or in the issuing financial institution's database.

Using an ATM, customers can access their bank deposit or credit accounts in order to make a
variety of financial transactions such as cash withdrawals, check balances, or credit mobile
phones. ATMs can be used to withdraw cash in a foreign country. If the currency being
withdrawn from the ATM is different from that in which the bank account is denominated,
the money will be converted at the financial institution's exchange rate

NETbanking, also known as internet banking, is an electronic payment system that enables
customers of a bank or other financial institution to conduct a range of financial transactions
through the financial institution's website. The online banking system will typically connect
to or be part of the core banking system operated by a bank and is in contrast to branch
banking which was the traditional way customers accessed banking services.

Some banks operate as a "direct bank" (or “virtual bank”), where they rely completely on
internet banking.

Internet banking software provides personal and corporate banking services offering features
such as viewing account balances, obtaining statements, checking recent transaction and
making payments. Access is usually through a secure web site using a username and
password, but security is a key consideration in internet banking and many banks also offer
two factor authentication using a (security token).

COMPARING RATES IN 5 BANKS

Revision of Interest Rates on SBI Savings Bank Deposits
With Effect from jan 2019
Rate of Interest
SL No Particulars
1 Saving Deposits Balance upto Rs. 1 crore. 3.50% p.a

4.00% p.a
2 Saving Deposits Balance above Rs. 1 crore.

Revision of Interest Rates on Axis Bank Savings Bank

Deposits
Particulars Rate of Interest
Saving Deposits Balance below Rs. 50 lakhs 3.50% p.a
Saving Deposits Balance of Rs. 50 lakhs and above 4.00% p.a

Revision of Interest Rates on HDFC Bank Savings Bank

Deposits
Particulars Rate of Interest
Saving Deposits Balance below Rs. 50 lakh. 3.50% p.a
Saving Deposits Balance of Rs. 50 lakh and above. 4.00% p.a

Revision of Interest Rates on Yes Bank Savings Bank

Deposits
Particulars Rate of Interest
Saving Deposits Balance upto Rs. 1 lakh. 5% p.a
Saving Deposits Between Rs. 1 lakh and Rs. 1 crore. 6% p.a
Saving Deposits above Rs. 1 crore. 6.25% p.a

Interest Rates on Federal Bank Savings Account

Federal Bank offers competitive interest rates on its Savings Bank (SB) Accounts. The
interest rates effective from 3 March 2018 are as shown in the table below:

Balance at the end of the day Interest rate (per annum)

Below Rs.50 lakh
Between Rs.50 lakh and Rs.10
crore
Between Rs.10 crore and Rs.25
crore
More than Rs.25 crore
Uniform rate of 3.50% for the entire balance
Up to Rs.50 lakh - 3.50% More than Rs.50 lakh - 4%
Up to and including Rs.1 lakh - 3.50% More than Rs.1
lakh - 6.30%
Up to and including Rs.1 lakh - 3.50% More than Rs.1
lakh - 6.51%

Comparing rates for deposit account

BANK – SBI

DEPOSIT AMOUNT RANGE – 1 CRORE

INTREST RATE – 5.75% - 7.25%

---------------------------------------------------------------
BANK – ICICI

DEPOSIT AMOUNT RANGE - 1 CRORE

INTREST RATE – 4% - 7.25%

---------------------------------------------------------------

BANK – HDFC

DEPOSIT AMOUNT RANGE - 1 CRORE

INTREST RATE – 3.5% - 7.25%

---------------------------------------------------------------

BANK – AXIS

DEPOSIT AMOUNT RANGE – 1 CRORE

INTREST RANGE – 3.5% - 7.25%

---------------------------------------------------------------

BANK – KOTAK

DEPOPSIT AMOUNT RANGE – 1 CRORE

INTREST RANGE – 3.55 - 7.30%

---------------------------------------------------------------

BANK – INDIA POST

DEPOSIT AMOUNT RANGE - 1 CRORE

INTREST RANGE - 6.85 - 7.6%

---------------------------------------------------------------
COMPARING RATES OF 5 BANKS FOR RECURING DEPOSIT

Bank Name RD Interest Rates Senior Citizen RD Rates

6.25% to 6.75% 6.25% to 6.75%

Allahabad Bank RD Rates

6.25% to 6.85% 6.75% to 7.35%

Andhra Bank RD Rates

6.25% to 6.90% 6.5% to 7.55%

Axis Bank RD Rates

6.5% to 7.5% 7% to 8%
Bandhan Bank RD Rates

6.25% to 6.9% 6.75% to 7.4%

Bank of Baroda RD Rates