Follow the steps for creating FTP Account with vsftpd server in Linux red hat
For this example, I am using Vsftpd, as it is the default FTP client distributed with Red Hat, however these instructions should apply to most FTP server applications.
Create a FTP user group. eg: ftpaccounts
Add a new user to this group, and set the default path of that user to /home/user/.
#/usr/sbin/adduser -g ftpaccounts -d /home/user/ testuser
Set a password for the newley created user.
Set ownership of /home/user to the testuser and ftpaccounts.
#chown testuser:ftpaccounts /home/user
Give Read/Write access to testuser and all members in ftpaccounts
#chmod 775 /home/user
Edit /etc/vsftpd/vsftpd.conf file and make sure ‘local_enable=YES’ is uncommented.
Restart the vsftpd service.
That’s it, I hope with above given steps you will be able to setup a simple FTP account on the server.