3. - When you deposit money into a
financial institution, you give the
institution use of your money in
exchange for its promise to pay you
back. Bank deposits are assets to you
and liabilities to the bank.
4. How does a bank deposit work?
• It works like this: When
you deposit the check at
your bank, they will send the
check or an electronic image of
the check to the payer's bank
6. Savings Account
-It offers high liquidity and is
very popular among the masses.
They provide a lot of flexibility for
deposits and withdrawal of funds
from the account and also have
cheque facility.
7. Recurring Deposit
It is a special type of term deposit
where you do not need to deposit a lump
sum savings rather a person has to deposit a
fixed sum of money every month
These accounts have maturities ranging
from 6 months to 120 months.
8. Current Account
It is a demand deposit and is meant for
businessmen to conduct their business
transactions smoothly. These are the most
liquid deposits and there are no restrictions
on the number and the number of
transactions in a day. Moreover, banks do
not pay any interest on these accounts.
9. Fixed deposit
It is an instrument offered by banks which
gives a higher interest than a regular savings
account and offers a wide range of tenures
ranging from 7 days to 10 years. The rate of
interest varies from bank to bank, usually, it lies
between 6-10%. You may or may not have a
separate bank account to open a fixed deposit
with the bank.
10. Fixed deposit
It is an instrument offered by banks which
gives a higher interest than a regular savings
account and offers a wide range of tenures
ranging from 7 days to 10 years. The rate of
interest varies from bank to bank, usually, it lies
between 6-10%. You may or may not have a
separate bank account to open a fixed deposit
with the bank.
