A Bank Account is a financial account maintained by a Bank for its customers. The bank makes an agreement with the account holder in which it assures to hold the funds and/or assets on its behalf. Depending on the nature of the account, its holder can decide what to do with the funds/assets.
In the beginning, there were only four types of bank accounts- Current Account, Savings Account, Recurring Deposit Account and Fixed Deposit Account. Then, as the banking sector in India advanced, various other new types of bank accounts got introduced.
An account holder can deposit money or can make withdrawals from their accounts. For example, in checking account or savings account, the bank will hold the money and pay the account holder a certain percentage in interest. This payment enables the bank to have the right of lending the funds to other clients or invest it within the confines of the law and banking regulations. However, when demanded, the account holder has the right to withdraw the total amount of money.
A bank account comes along with the various bank services such as online banking, Mobile Banking, etc.
