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What are the Different Types of Bank Accounts? A Guide for Nepalese Expats in France

23 Feb 2024


When living abroad, having an all-purpose bank account is very important because you must regularly make a money transfer from France to Nepal to your family. Making payments, buying things and paying bills using bank accounts gives you plenty of advantages. You get a lot of tax benefits and other stuff.   

The banking systems of countries can vary. According to a report by Nepal’s former ambassador to France, Mohan Krishna Shrestha,  almost 300 to 350 Nepalis only serve as French Foreign Legionnaires. It reveals that a large number of Nepalis reside in France. So, it is important to equip yourself with knowledge of their banking system. 

This article will help you understand the types of bank accounts and how they work for different purposes.  

Common Types Of Bank Accounts in France

Several types of bank accounts are designed to serve different financial needs. The most common types of bank accounts include:  

Power of Savings Accounts

Savings accounts are designed to save money over time. The benefit comes when they pay interest on the balance. Savings accounts have limitations on the number of withdrawals per month. These types of accounts are very beneficial if you are unable to save money. You can open a savings account that will help you in emergencies or gather your retirement funds. 

Benefits of a Certificate of Deposit (CD) 

A certificate of deposit account involves depositing a fixed amount of money for a specific term. It offers a higher interest rate than savings accounts. You specify the date of withdrawal while making the account. If you withdraw funds before the maturity date, it may result in a penalty. This account is beneficial if you want to save money for a bigger cause, like investing, purchasing assets, etc. It is also very beneficial if you want to send money to Nepal from France in larger sums. 

Versatility of Checking Accounts

Checking accounts are mostly used as bank accounts and are used for everyday transactions, such as paying bills and making purchases. They do not come with any interest. They come with a debit card and cheques for easy access to funds. You can just swipe the card to make payments.      

Money Market Accounts

Money market accounts are similar to savings but offer higher interest rates. They come with a cheque book so you also have cheque-writing privileges. This account requires a minimum balance, which is necessary to keep the account operating. If you drop the balance, your account may stop working.      

Individual Retirement Accounts (IRAs)

This is a very beneficial account that is specifically designed for retirement savings. People usually are unable to take out funds for their retirement safety. This account will help you save money for later. It comes in traditional IRA or Roth IRA forms. It can also offer you tax advantages, depending on the type.   

Perks of Joint Accounts      

It is the type of account that two or more individuals hold. All account holders have access to funds and can make transactions. This account is commonly used for family members or business partners. If you are working abroad, this type of account can be a real gold for you. You can open a joint account with your family, and everyone will have access to the account. It can be the cheapest way to send money online to Nepal from France.

Role of Business Accounts

Business accounts are specifically designed for business purposes. They include business checking, savings, or specialized accounts for business needs.

Exploring the Trust Accounts

Trust accounts are established to hold and manage assets for the benefit of others. They are managed by a trustee on behalf of the account's beneficiaries.  

Student Accounts  

Student accounts are specifically designed for students, often with lower fees and features like overdraft protection. They also have high tax benefits.

Foreign Currency Accounts

As the name indicates, these accounts are highly beneficial if you live in a foreign country. They allow holding funds in a foreign currency. Foreign currency accounts are very useful for international transactions or individuals dealing with multiple currencies.

Online-Only Accounts

These are the most popular and most used accounts in this digital age. Operated entirely online without physical branches. They offer competitive interest rates and low fees. The advantages of sending remittances online in 2023 are countless. Online accounts have given high competition to physical benefits. They come with the highest benefits and lowest fees. 

Since the economic condition of the whole world has been entirely disturbed by the coronavirus, ACE Money Transfer has been benefitting its customers without any extra gains. ACE provides you with the safest online platform to exchange your funds across the border. It gives the best exchange rates and lowest transfer fees as compared to the physical remittance market. For ACE, customer satisfaction is their top priority.  

Choosing the Best Account for Your International Transfers

Before opening a bank account, it's important to understand the terms, fees, and features associated with each type to ensure it aligns with your financial goals and needs. If you want to open an account for online money transfer from France to Nepal, you should open an account that offers the best exchange rates, instant transfer service and minimal transfer fee.       

FAQs

What are the two main types of bank accounts called?

Checking account: A checking account offers easy access to your money for your daily transactional needs and helps keep your cash secure. 

Savings account: A savings account allows you to accumulate interest on funds you've saved for future needs.

Why are there different types of bank accounts?

There are different types of bank accounts to serve different purposes. For example, current accounts provide everyday banking services such as receiving your salary, making cash withdrawals and paying bills. Conversely, savings accounts are designed to give you an account to deposit money and earn interest.

What is CDD in banking?

Customer due diligence (CDD) is required of any business that interacts with customers and is covered by know-your-customer (KYC) and anti-money laundering (AML) regulations. Its purpose is to prevent financial crime and uncover any risks to your organization that could arise from doing business with certain customers.

What are the different types of accounts in banks?

Different types of bank accounts are current accounts, savings accounts, salary accounts, fixed deposit accounts, recurring deposit accounts NRI accounts etc.

What are the basic account types?    

Typically, businesses use many types of accounts to keep track of their financial information and current value. These can include asset, expense, income, liability and equity accounts. You may continuously use each account for a different purpose and maintain them on your financial ledger or balance sheet.


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