The Different Types of Bank Accounts in Pakistan
Technically, there are four main types of bank accounts in Pakistan that you can choose from: current accounts, savings accounts, time deposits, and certificates of deposit (CDs). Each type offers different interest rates and requires different account maintenance fees, so it’s important to choose wisely when determining which one is best for your personal financial situation.
For example, if you plan on saving more than the minimum required amount each month to earn the standard interest rate on a savings account, then you might be better off with a CD as opposed to a savings account, as CDs typically offer higher interest rates than savings accounts do.
Fixed Deposit Account
In Pakistan, one of the most popular types of bank accounts is the Fixed Deposit Account. This account allows customers to save money for a set period of time, usually ranging from one month to five years. The interest rate on a Fixed Deposit Account is usually higher than that of a regular savings account, making it a good option for those looking to grow their money. There are no monthly fees associated with a Fixed Deposit Account, and withdrawals can be made at any time without penalty. To open a Fixed Deposit Account, you will need to have a valid Pakistani ID and proof of income. When opening this type of account, your initial deposit needs to be equal to or greater than 100,000 rupees.
However, there is an exception if you are opening an FD as part of a Joint Account (FDR). When opening an FDR, your initial deposit must be equal to or greater than 500,000 rupees. Withdrawals on Fixed Deposit Accounts may only be made after the maturity date (withdrawal cannot take place during the term). The maturity date should always be taken into consideration when choosing which type of FD account is best for you; some may have shorter terms while others may have longer terms.
Saving Account
A savings account is a type of bank account where you can deposit money and earn interest on the balance. In Pakistan, there are many different types of savings accounts available, each with its own set of features and benefits. The most common types of savings accounts are basic savings accounts, Islamic banking accounts, and senior citizen accounts. Basic savings accounts usually offer a higher interest rate than other types of bank accounts, but they may have a lower limit on the amount of money you can deposit each month. Islamic banking accounts earn interest based on the principle of mudarabah, which means that profits are shared between the bank and the account holder. Senior citizen accounts are designed for people over the age of 60 and offer special benefits such as higher interest rates and relaxed withdrawal rules.
Types of loan in pakistan include credit cards, auto loans, personal loans, student loans, home equity loans and more. Types of financial institutions in pakistan include banks, insurance companies, credit unions and mutual funds. Types of atm cards in pakistan include cardless ATM cards (where all your transactions are performed by entering your ATM PIN), contactless cards (which can be used by tapping them against a reader), dual interface cards (which work with both chip-and-pin technology and magnetic stripe technology) and more. Types of banking in pakistan include saving accounts, checking accounts (also known as demand deposits), fixed deposits (which require pre-specified terms).
Current Account
A current account is a type of bank account that allows customers to deposit and withdraw money, make payments, and transfer funds. Customers can also use their current account to save money. In Pakistan, there are several types of current accounts available, including the Basic Banking Account (BBA), the Students Banking Account (SBA), and the Personal Banking Account (PBA). Each type of account has its own set of features and benefits.
For example, the BBA is a no-frills account that doesn’t require a minimum balance and charges no monthly fees. The SBA is designed for students and offers special benefits such as free withdrawals and discounts on banking products and services.
Meanwhile, the PBA includes all of the features of an SBA plus higher interest rates and personal financial advice. With so many different types of bank accounts available in Pakistan, it’s important to know which one best suits your needs before signing up for one.
Islamic Banking Account
In Pakistan, there are two types of banking systems: the conventional system and the Islamic system. The latter is based on the Sharia, or Islamic law, which does not allow for the charging or paying of interest. Instead, profit and loss are shared between the bank and customer. Because of this, there are different types of accounts offered by banks in Pakistan.
Here is a look at some of the most common types of accounts in the Islamic system.
-Riba-free account -Allows deposits only and no withdrawals (so money can be used to earn interest)
-Basic Savings Account -This account has no minimum balance requirements, earns profits from savings and allows monthly withdrawals up to 5% of the account balance
-Homes Savings Account - Earns profit from savings but also offers home loan options with lower rates and fixed payments -Current Account - A checking account that provides access to cash, pays interest on current balances and other transactions
-Term Deposit Account - Allows customers to deposit a set amount of money over a specified period of time.
Foreign Currency Accounts
If you are looking to invest in Pakistan but don’t want to put all your eggs in one basket, consider opening a foreign currency account. This type of account allows you to hold multiple currencies, which can be helpful if you plan on doing business or traveling in different countries. Banks typically offer foreign currency accounts in U.S. dollars, Euros, and British pounds, but there may be other options available depending on the bank. Keep in mind that you will likely need a certain amount of money to open this type of account, and there may be fees associated with transactions. Pakistan has also developed an online banking system called Tameer Bank. Online banking is accessible anywhere there is internet access, which makes it an ideal option for people who travel frequently or live abroad.Eligibility Criteria
In order to open a bank account in Pakistan, you must be a Pakistani citizen or have a valid Pakistani visa. You will also need to provide proof of your identity and address. Some banks may require additional documents, such as proof of income or employment. Once you have gathered all the required documents, you can choose from the following types of bank accounts - Current Account: a transactional account where withdrawals are limited but there is no limit on the number of deposits.- Fixed Deposit Account: this is an interest bearing account where the money deposited remains fixed for a specific period.
- Savings Account: this is an interest bearing account that has a minimum balance requirement. - Demat Account: this is an investment bank account where stocks and shares are kept, with either standard trading facility or dematerialized mode of trading.
How to Open a Savings/Current/FCA Account?
In Pakistan, there are three types of bank accounts: savings, current, and FCA. To open a savings account, you'll need to deposit at least Rs.1,000 into the account. There is no minimum balance required for a current account, but you will be charged a monthly service fee if your balance falls below Rs.5,000. An FCA account is a special type of account for businesses and requires a minimum balance of Rs.100,000.
Financial institutions typically offer other types of financial products as well, such as auto insurance or financial insurance. Some companies offer these services together under one roof; others only provide certain services. For example, bank Al-Falah provides banking services like an ATM card, checking account, etc., while they also provide auto insurance policies like third party car cover with both fire and theft coverage up to Rs.1 million.
