Types of Bank Accounts Explained

Imagine walking into a bank in Motijheel with three tasks on your mind. You want to deposit your freelance income, settle utility bills, and set aside some money for your child’s future. If you rely on just one account, you’ll quickly notice that it doesn’t meet every need. That’s when learning about the types of bank accounts in Bangladesh becomes important.

According to Bangladesh Bank’s 2024 statistics, the country has over 140 million active accounts, and more than half of transactions now happen through digital channels. Knowing the different types of bank accounts BD banks offer helps you plan better, save smarter, and handle money with confidence.

Savings Account BD – where most journeys begin

In Bangladesh, many customers start with a savings account BD because it’s simple, safe, and pays modest interest—usually 3.5% to 4.5% a year.

• Best for you if: you’re salaried, a student, or want to keep household savings.
• What you get: debit card, ATM access, mobile and online payments.

Example: if you maintain Tk 200,000 for a year at 4% interest, you earn about Tk 8,000 before tax.

This account works well as your emergency reserve and for day-to-day needs.

Current Account – built for frequent money movement

If you run a shop, operate an SME, or receive client payments regularly, a current account is more practical. It doesn’t pay interest, but it gives you the flexibility of unlimited deposits and withdrawals.

• Best for you if: you’re a trader, business owner, or freelancer with many payments.
• What you get: cheque book, access to RTGS and BEFTN for transfers, and quicker processing of payments.

Fact: about 60% of SMEs in urban areas depend on current accounts for business transactions.

This type is perfect when smooth financial operations matter more than earning interest.

Savings vs Current – how to decide

The savings vs current question comes down to purpose:

• A savings account helps you grow funds through interest while still keeping them accessible.
• A current account lets you carry out unlimited deposits and withdrawals, making it ideal for busy financial activity.

Many business owners use both—profits stay in savings to earn interest, while expenses are managed through current.

Fixed Deposit (FDR) – grow your unused balance with better interest

When you have extra funds that you won’t need for a set period, putting them in a Fixed Deposit is a smart choice. Interest rates in Bangladesh usually range from 6% to 8%, depending on the term.

• This option works well when: you’re preparing funds for education costs, buying a home, or meeting any major expense.
• Tip: avoid breaking it before maturity, as that reduces earnings.

Example: Tk 500,000 invested in a one-year FDR at 7% grows to Tk 535,000 by the end of the term.

This account is ideal if you want safe growth with better returns than a savings account.

Deposit Pension Scheme (DPS) – small steps toward big goals

A DPS helps you save steadily over time by depositing a fixed sum every month. At the end of the term, you receive the deposits plus interest, often around 6% to 7%.

• Best for you if: you’re planning for tuition, weddings, or other family expenses.
• Tip: many banks now allow automatic deductions to prevent missed payments.

Case: putting aside Tk 5,000 monthly for 3 years builds a significant fund for planned needs.

DPS accounts are especially useful if you prefer structured savings with discipline.

Salary and Student Accounts – banking options shaped around your lifestyle

Banks design special products for different groups:

• Salary account: direct salary credit, lower service charges, and sometimes linked loan options.
• Student account: minimal or no balance requirement, debit card, and internet or mobile banking facilities.

With 47 million young people in Bangladesh, these accounts support both youth and professionals in managing money easily.

Foreign Currency Accounts – managing global income

Bangladesh received USD 21.9 billion in remittances during FY2023-24, showing the importance of foreign currency accounts.

• Best for you if: you receive remittances, earn from freelancing abroad, or need to pay tuition overseas.
• Benefits: hold balances in USD, GBP, or EUR; send payments abroad; protect income from taka depreciation.
• Requirement: valid documents under Bangladesh Bank’s eKYC rules.

This account ensures your international earnings stay secure and accessible.

Special Notice Deposit (SND) – the middle path

An SND account gives you flexibility for frequent transactions while still paying modest interest, usually 2.5% to 3.5%. Corporates, NGOs, and large retailers often use these to manage operational funds.

This type is useful if you need liquidity but don’t want to lose all interest.

Joint and Minor Accounts – family-focused choices

• Joint account: a joint account lets you and another person—such as a spouse or family member—share control over the same pool of money.
• Minor account: allows you to save under your child’s name, with you managing it until they reach adulthood.

Both options support family-oriented financial planning.

Why it matters for you in 2025

The kind of account you choose influences how you save, spend, and even borrow. With mobile wallet usage in Bangladesh rising by 25% in 2024, the right account connects you to QR payments, instant statements, and app-based services. A thoughtful choice today creates smoother financial control tomorrow.

Quick guide to help you choose

• If you’re new to work: savings account BD + DPS for future savings.
• If you run a small business: current account + SND for better cash flow.
• If you rely on remittances: foreign currency account + local savings.
• If you’re a parent: student account for your child + minor account for reserves.

Final word for you

Your banking experience becomes simpler when your account matches your lifestyle. By exploring the different types of bank accounts BD, comparing savings vs current, or choosing the right savings account BD, you can make your money serve your goals. Whether your aim is security, convenience, or growth, the right mix of accounts gives you confidence and peace of mind.

FAQs on Types of Bank Accounts

1. What kinds of accounts do banks in Bangladesh offer you?

Banks in Bangladesh provide a wide range of options, including savings, current, fixed deposits (FDR), deposit pension schemes (DPS), salary accounts, student accounts, foreign currency accounts, SND accounts, and family-based accounts such as joint or minor accounts.

2. Which account works best for saving money?

For everyday saving, a savings account BD is the easiest choice. If you want higher returns, FDR and DPS accounts usually provide better interest depending on your balance and commitment period.

3. How do savings and current accounts differ?

Savings accounts are meant for building funds with interest, while current accounts are made for frequent and unlimited money movement, which suits business owners and professionals.

4. Can you keep more than one type of account?

Yes. Many people use a savings account for personal needs and a current account for business. You can combine both to get the benefits of interest and smooth transactions.

5. Which account pays the most interest?

Fixed Deposit accounts usually offer the best rates, often ranging from 6% to 8% annually depending on the bank and term.

6. What is a DPS and how does it work?

A Deposit Pension Scheme lets you set aside a fixed amount each month. At the end of the term, you receive the total deposits plus interest, which is helpful for long-term goals like education or marriage expenses.

7. Can students have a bank account in Bangladesh?

Yes. Student accounts are available with very low balance requirements. They usually come with debit cards, mobile banking access, and online services that make handling money easier.

8. Why would you need a foreign currency account?

It’s useful if you earn abroad, receive remittances, or study overseas. These accounts allow you to hold money in USD, GBP, or EUR and protect your earnings from exchange rate changes.

9. What paperwork do banks usually ask for when opening an account?
Most banks ask for your NID, two recent passport-size photos, and proof of address. Some may require a TIN certificate. If you’re opening a foreign currency account, you may need additional documents related to income or remittances.

10. Which account is better for freelancers?

If you earn from local clients, either a savings or current account will work. But if your income comes from abroad, a foreign currency account is more suitable for receiving and managing payments.