Pillar 9

Banking and Account Basics

Bank accounts are the foundation underneath every other personal-finance decision, and most people use them without understanding what each account type actually is. This section covers checking accounts, savings accounts, fixed deposits, UPI, IFSC codes, deposit insurance, and the mechanics underneath everyday banking. Universal concepts plus India-specific instruments (UPI, IFSC, FD, DICGC) and US-specific ones (FDIC, routing numbers, money market accounts).

15 articles

A post office passbook and a stack of monthly deposit slips beside a calculator, illustrating how a recurring deposit accumulates a fixed sum every month

Banking What Is a Recurring Deposit? RD Rules, Rate, and Tax

A recurring deposit takes a fixed sum every month at a locked rate. The 6.7% post office rate, the gazetted default rules, what early closure costs, and RD tax.

17 min read

Two people sharing one bank account, illustrating joint ownership, equal access, and shared liability on a joint bank account

Banking What Is a Joint Bank Account? How They Work

What a joint bank account is and how it works, compared for the US and India: types and operating modes, deposit insurance (FDIC vs DICGC), survivorship, and the risks.

13 min read

A side-by-side comparison of an ACH transfer and a wire transfer showing the differences in speed, cost, and reversibility

Banking ACH vs Wire Transfer: Speed, Cost, and Safety Compared

ACH vs wire transfer compared on speed, cost, and reversibility, the legal reason wires aren't reversible, plus where FedNow, RTP, and Zelle fit.

14 min read

A shop counter ledger and a personal passbook side by side, illustrating the business current account versus the personal savings account in India

Banking Current Account vs Savings Account in India: Difference

Current account vs savings account in India: how they differ on interest, transaction limits, minimum balance, CASA, and deposit insurance.

14 min read

A layered diagram showing the foundation of personal banking — account types at the base, deposit insurance protecting them, payment rails connecting them, and fee structures overlaying everything, illustrating how banking basics underlie every other personal finance decision

Banking Banking and Account Basics Explained: What Each Account Type Is and How It Works

What is banking? A comprehensive introduction to the account types, payment rails, deposit insurance, and fee structures that form the foundation of personal finance. Covers checking and savings accounts, fixed deposits and CDs, FDIC and DICGC deposit insurance, UPI and the India payments stack, US ACH and wire transfers, overdraft protection, money market accounts, and bank fees, for India and US audiences.

11 min read

Bank statement showing highlighted fee line items beside a magnifying glass, illustrating the hidden charges most account holders never audit

Banking Bank Fees Explained: What RBI and US Banks Can Charge

What your bank can charge and what it cannot: RBI's Rs 23 ATM cap, the free-transaction rules most pages get wrong, and US averages from Bankrate 2025.

15 min read

Bank balance gauge tipping below zero with a red warning indicator, illustrating how overdraft protection covers transactions exceeding the available balance

Banking What Is Overdraft Protection? Fees, Opt-In, and OD in India

Overdraft protection covers a short checking balance by a linked transfer or a flat fee. Reg E opt-in, the repealed $5 cap, and India's OD facility explained.

13 min read

Stack of US dollar bills beside a savings passbook and a calculator showing a high APY rate, illustrating how a money market account combines savings interest with checking-account flexibility

Banking What Is a Money Market Account: How MMAs Work, Rates, and Why India Doesn't Have a Direct Equivalent

What is a money market account (MMA)? A US deposit account that blends savings-account FDIC coverage with checking-account features, paying 4-5% APY at top online banks in Q1 2026, allowing limited cheque writing and debit card use, and requiring higher minimum balances ($1,000-25,000) than standard savings. Covers how MMAs differ from money market mutual funds, why India's liquid mutual funds fill the same role, and when an MMA beats a HYSA.

9 min read

A US cheque showing its routing number beside an Indian passbook showing an IFSC code, illustrating the two different bank identifier systems

Banking Routing Number vs IFSC Code: Which One Your Transfer Needs

India has no routing number. How IFSC, ABA routing numbers and SWIFT differ, how to check a code is valid before you use it, and what happens when it is wrong.

17 min read

Smartphone showing a UPI QR code scan in progress with the Indian rupee symbol, illustrating how UPI enables instant bank-to-bank transfers

Banking What Is UPI? How India's Payment System Actually Works

UPI explained: what it is, the current transaction limits and who qualifies for the higher ones, why it is free and who pays for that, and the real fraud risks.

16 min read

Three parallel arrows of different lengths representing IMPS, NEFT, and RTGS bank transfer speeds, with the Indian rupee symbol illustrating India's three RBI-regulated payment rails

Banking IMPS vs NEFT vs RTGS: How India's Three Bank Transfer Rails Differ and When to Use Each

What is the difference between IMPS, NEFT, and RTGS? Three Reserve Bank of India payment systems with different speeds, limits, and use cases, IMPS is instant 24/7 up to ₹5 lakh, NEFT settles in 30-minute batches with no upper limit, RTGS is real-time for transfers ₹2 lakh and above. Covers fee structures, processing times, transaction limits, and which rail to pick for different scenarios.

10 min read

Two bank vault doors side by side, one labelled with US dollars and the other with Indian rupees, illustrating FDIC and DICGC deposit insurance coverage

Banking FDIC vs DICGC: Deposit Insurance in India & the US

DICGC insures ₹5 lakh per Indian bank; FDIC insures $250,000 per US bank. The rules, what is and isn't covered, the 90-day payout, and FDIC vs NCUA vs SIPC.

16 min read

Two fixed deposit certificates beside a calculator and a pen, one labelled in rupees and one in dollars, illustrating the India FD and US CD as the same instrument

Banking FD vs CD: India Has Both, and They Are Not the Same

India has a fixed deposit and a separate RBI-regulated certificate of deposit. The US CD is closer to India's FD. What they pay, and what breaking one costs.

17 min read

Ceramic piggy bank with coins beside a passbook and pen, illustrating how a savings account accumulates interest over time

Banking What Is a Savings Account: How Interest Works, Indian and US Rates Compared, and Insurance Coverage

What is a savings account? An interest-bearing deposit account designed to park money you don't need immediately, paying 2.5-4% in Indian SB accounts, 0.46% in average US accounts, and 4-5% in US high-yield online savings. Covers how interest is calculated, the DICGC ₹5 lakh and FDIC $250,000 coverage limits, minimum balance rules, and the practical difference between savings and a fixed deposit.

9 min read

Open checkbook with a pen and a debit card on a wooden desk, illustrating the transactional nature of a checking account

Banking What Is a Checking Account? How It Works, Types & Fees

A checking account is the bank account you use for everyday spending. How it works, the types, what you need to open one, and the fees to watch for.

10 min read