The Money Decoded

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).

10 articles

Bank statement showing highlighted fee line items beside a magnifying glass, illustrating the hidden charges most account holders never audit
BankingWhat Are Bank Fees Explained — Every Charge Your Bank Can Quietly Take in the US and India

What are the bank fees you're actually paying? Monthly maintenance, overdraft, ATM, wire, foreign transaction, minimum balance penalties, SMS alert charges, debit card annual fees — covers the full fee surface at both US and Indian banks, with current Q1 2026 fee schedules, the waiver conditions that eliminate most fees, and the structural choice of online vs traditional banks that determines the baseline.

10 min read

Bank balance gauge tipping below zero with a red warning indicator, illustrating how overdraft protection covers transactions exceeding the available balance
BankingWhat Is Overdraft Protection — How It Works, the $35 Fee Trap, and the India Equivalent

What is overdraft protection? An opt-in bank service that covers transactions exceeding your account balance — usually for a $35 average fee per occurrence in the US (CFPB data). Covers how overdraft fees work, the Regulation E opt-out, the cheaper alternative of linking a savings account, and India's overdraft facility (OD against FD or salary) which functions differently from US overdraft protection.

9 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
BankingWhat 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

Close-up of a US cheque routing number and an Indian bank passbook IFSC code side by side, illustrating how each country's bank identifier code is structured
BankingRouting Number vs IFSC Code Explained — How Bank Identifier Codes Work in the US and India

What is a routing number (US) vs IFSC code (India)? Both are bank identifier codes used to route inter-bank transfers — US ABA routing numbers are 9 digits assigned by the American Bankers Association since 1910, IFSC codes are 11 alphanumeric characters assigned by RBI to identify specific branches. Covers how each is structured, where to find yours, the difference between routing and SWIFT/BIC codes, and what changes after a bank merger.

9 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
BankingWhat Is UPI Explained — How India's Unified Payments Interface Actually Works

What is UPI? The Unified Payments Interface built by NPCI on RBI's mandate in 2016 — instant 24/7 bank-to-bank transfers using a Virtual Payment Address (VPA). Covers the underlying architecture, transaction limits, the ₹16+ lakh crore processed monthly across 600+ member banks, autopay mandates, UPI Lite for small payments, and how the rails differ from IMPS/NEFT/RTGS.

10 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
BankingIMPS 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
BankingFDIC vs DICGC Deposit Insurance Explained — How Bank Deposits Are Protected in the US and India

What is FDIC vs DICGC? The two national deposit insurance schemes that protect bank balances if the bank fails — FDIC covers $250,000 per depositor per insured US bank per ownership category; DICGC covers ₹5 lakh per depositor per Indian bank. Covers the coverage math, what is and isn't insured, the historical bank failures that shaped each system, and how to structure deposits above the limits.

10 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
BankingWhat Is FD vs CD Explained — How Fixed Deposits and Certificates of Deposit Work in India and the US

What is a fixed deposit (FD) in India and a certificate of deposit (CD) in the US? Both are time deposits — money locked at a fixed interest rate for a set tenure. Indian FDs paid 6.5–8% in Q1 2026 (small finance banks at the top end), US CDs paid 4.5–5.25% at online banks. Covers the math, the early-withdrawal penalty, DICGC vs FDIC coverage, and the senior-citizen rate bump.

10 min read

Ceramic piggy bank with coins beside a passbook and pen, illustrating how a savings account accumulates interest over time
BankingWhat 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
BankingWhat Is a Checking Account — How It Works, Fees, and How It Compares to Savings

What is a checking account? A transactional bank account for daily spending — debit card, direct deposit, bill pay, paper checks — that typically earns 0.01–0.07% APY, charges $5–35 in monthly and overdraft fees, and sits under $250,000 FDIC coverage in the US. India has no direct retail equivalent: savings accounts handle the transactional role, current accounts are for businesses.

9 min read