Deposit Accounts
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This document discusses the various types of deposit accounts offered by banks, highlighting their importance in the banking sector. It categorizes deposits into demand deposits—such as current accounts, savings accounts, and call deposits—and fixed deposits, which require a specified period before withdrawal. The relationship between banks and customers begins with the opening of a deposit account, reflecting the banks' role in fulfilling customers' financial needs.
Deposit Accounts
- 1. Deposit Accounts Introduction Types of Deposit Accounts Demand Deposit Fixed Deposit Deposit Accounts Retail Banking Chapter 02
- 2. Introduction This chapter will provide you the information about the different types of deposit accounts. To accept deposit for providing loans are the most important activities of banks. The later is 100% depends on former. That is why accepting deposit is a backbone of bank. The relationship between bank and customer starts when the customer opens an deposit accounts with bank. As customers have unlimited needs, bankers offers different types of deposit accounts to satisfy their needs. Deposit Accounts Retail Banking Chapter 02
- 3. Types of Deposit Accounts Types of Deposits Demand Deposit The different types of Deposit are elaborated by chart, Current Account Saving Account Call Deposit Fixed or Time Deposit Deposit Accounts Retail Banking Chapter 02
- 4. Demand Deposit The demand deposit are those, where the money deposited is available to the depositor on demand. As seen in the chart the demand deposit is further classified in to three: 1.Current Accounts: refers to, “a form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account. It shall also be deemed to include other deposit accounts that are neither savings nor term deposit.” Deposit Accounts Retail Banking Chapter 02
- 5. Demand Deposit 2. Savings Accounts: it means, “a deposit account, which is subject to the restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the bank during any specified period.” 3. Call Deposits: These are the deposits maintained by banks. These are kept overnight or for a period of time and are interest earning. Deposit Accounts Retail Banking Chapter 02
- 6. Fixed Deposit Fixed Deposit: This is the second type of deposit accepted by bank. As the name suggest, it is fixed for specific period, it can not be withdraw before expiry of such period. It is defined as, “a deposit received by a bank for a fixed period and which is withdrawable only after the expiry of the said period”. The other e.g. of such deposits are, reinvestment, annuity and recurring. Deposit Accounts Retail Banking Chapter 02
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