Every bank offers different kinds of accounts for its customers. Some of them are the savings account, fixed deposit accounts, recurring deposit accounts, and current deposit accounts.
The most popular among the four is the savings account. Here, if one deposits an amount, he will earn a small interest from the bank. The user is also free to withdraw money from it whenever needed. But the withdrawals are subject to certain conditions.
In the case of fixed deposits, the deposited amount has to remain in the account for a fixed term, say five years. This account is used mainly for saving larger sums of money. The interest a bank gives for this account too, would be more.
Another type is the current deposit account, meant mainly for businessmen. Here, there is no limit for depositing or withdrawing money.
Recurring deposit accounts are for smaller savings. They are used by people who deposit a specific amount for a small period, say six months or one year, and earn it back with a small interest.