Deposits – Savings Account, Current Account, Fixed Deposit, Kids Account, Online Banking (2024)

FAQs

What is saving account current account and fixed deposit account? ›

While savings and current accounts are places to keep money you want to use anytime, a fixed deposit account is a place to keep it aside for a period of time. You can still withdraw the funds whenever you want to, but if you withdraw before your tenure is up, you may forfeit some interest returns.

Some institutions may allow you to open the account online, while others require it done at a bank branch in person. While the institution may not require your child to be present, involving them in the experience can prove a beneficial part of the learning process.

Meaning. A savings account is a deposit account which allows limited transactions, while a Current Account is meant for daily transactions.

The choice between a savings account and a fixed deposit depends on your financial goals. A savings account is suitable for liquidity and daily expenses, while a fixed deposit offers higher interest for a fixed tenure, making it ideal for savings and wealth creation.

CIMB's Why Wait Fixed Deposit-i account works like a normal fixed deposit. The good thing is, unlike a normal Fixed Deposit where you receive your interest only at maturity; CIMB's Why Wait Fixed Deposit-i account allows you to collect your returns in the form of profit, upfront.

For children under 16, the bank account will need to be opened by their parent, guardian or grandparent either in a branch or online.

However, there are many accounts held on behalf of children with one of their parents as trustee. Here, providing the trustee can prove they are using the monies for the benefit of the child, they can withdraw funds from the child's account.

The kiddie tax

Unlike 529 plans and ESAs, custodial accounts are subject to the so-called "kiddie tax." This tax rule applies to unearned income (i.e., investment income) up to a certain threshold. Over that threshold, the child will pay taxes at the parent's tax rate. To learn more, see IRS Publication 929.

Minor children by law can't open a savings account. They need a parent or guardian to set up a custodial or joint account. A custodial account is the property of the child, but managed by the parent until the child turns 18.

A fixed deposit (FD) is a tenured deposit account provided by banks or non-bank financial institutions which provides investors a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account.

Can I withdraw money from my savings account? ›

Unlike checking accounts, they are typically designed for depositing money long-term, with interest payments as an incentive to keep it there. But, once there, can you take money out of a savings account? The answer is, put simply, yes — you can take money out of a savings account.

Fixed term savings accounts are reliable because this interest rate is fixed, which means you can work out exactly how much interest you'll earn during the term. OakNorth pays interest when your fixed term savings account matures at the end of the term.

In current deposit account withdrawals are allowed throughout the tenure of the account whereas in fixed deposit account, withdrawals are not permitted until the expiry of the fixed period.

Types of Deposits

On the basis of purpose they serve, bank deposit accounts may be classified as follows: Savings Bank Account. Current Deposit Account. Fixed Deposit Account.

The four basic types are checking account, savings account, certificate of deposit and money market account. Each kind of account serves a different purpose. For instance, a checking account is geared toward covering everyday expenses, while a savings account is designed to help achieve short-term financial goals.