Banks accept deposits so that they can provide for loans. Accepting deposits is therefore treated as the backbone of the banking system. There are different types of deposits such as demand deposits and fixed deposits. Demand deposits are further categorized into current account, saving account and call deposit. Demand deposits are primarily deposits that the customer can withdraw at will. Fixed Deposits on the contrary come for a fixed period. It cannot be withdrawn before the date of maturity. The other forms of Fixed Deposits are re-investment, annuity and recurring.

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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