Bank accounts 101

A bank keeps your money safe and pays you interest for letting it use your deposits.

Common accounts

• Savings account: for everyday money. Low interest (often 2.5–4%), withdraw anytime.
• Fixed deposit (FD): lock a lump sum for a fixed time at a higher rate.
• Recurring deposit (RD): deposit a fixed amount every month for a fixed time.

Is my money safe?

In India, deposits in each bank are insured by DICGC up to ₹5 lakh per depositor per bank, covering principal and interest.

KYC

To open an account you complete KYC (Know Your Customer) with documents like Aadhaar and PAN. Never share these with strangers.

Read the fine print

Check minimum balance rules and charges. Many banks offer zero-balance accounts for students.