Savings bank deposits are meant for small savers and have restrictions on withdrawals and minimum balance requirements. Current deposits are for business people and allow withdrawals by cheque but no interest. Recurring deposits encourage regular monthly savings over a fixed period by automatically depositing a set amount each month to earn interest. Fixed deposits are repaid after a specific time period but penalties apply for early closure. Proper documentation and verification is required to open any type of bank deposit.

1. DEPOSITS

2. • Main activity of bank.
• Savings of people.
• Source of income.
• Safety of earnings.

3. SAVINGS BANK DEPOSIT

4. • Meant for Small Savers primarily.
• Restrictions on withdrawals.
• Minimum balance Rs 500- Rs 1000 – this varies with
different banks; Rs 10000 for ICICI, HDFC Etc..
• Interest at 4% p.a up-to Rs.1,00,000
• No overdraft facility. It can be sanctioned though.
• ATM cards available, net banking and mobile banking
facility available.
• Cheques collected on this account.

5. • Nomination facility available.
• Letter of introduction required to open an account.
• Fulfilling of KYC norms.
• SB facility available with Post Office.
• Account can be closed after one year. Incase of
early closure, a service charge of Rs. 100 will be
levied.

6. CURRENT DEPOSIT

7. • An account generally opened by business people for
convenience.
• Money can be withdrawn and deposited at any time.
• Withdrawal is possible only by means of cheques.
• Banker generally does not allow any interest on this account.
• Two basic privileges which customers can enjoy are :
- Overdraft facility.
- Other facilities like collection of cheques, transfer of money
and rendering agency and general utility services.

8. • Banker charges interest on overdraft on day-to – day basis.
• Current account holders must keep a minimum balance of Rs.
5000/1000- to keep the account running(varies according to
Banks)
• If this minimum is not maintained, charges would be charged
periodically (varies according to Banks)
• Bank sends “Statement of Account” to customers every
month.
• As deposits here are to be paid on demand, the banker should
keep a minimum cash reserve.

9. RECURRING DEPOSIT

10. • One form of time deposits to encourage monthly savings.
• Depositors save and deposit regularly every month so that
they are assured a sizeable amount at a later period in order to
meet contingent expenses.
• Very popular type of account among all classes of people,
especially salaried class .
• Deposit works on the maxim „little drops of water make a big
ocean‟.
• Any person can open this account/ can have more than one
account at a time/ can be opened in joint names as well.

11. • Maybe opened for monthly instalments in sums of Rs.100/- or
in multiples of Rs.100. The number of monthly instalments
may vary from 12 -120 months. Total amount is repayable
with interest with quarterly compounding.
• Recurring deposit holder can get a loan on the security of a
recurring deposit. Banker may grant 75% of the total amount
paid as loan and interest of 1% over the recurring deposit is
charged.
• Accounts are transferable from one branch to another.
• Rate of interest is similar to that of FD but it is compounded
quarterly

12. FIXED DEPOSITS

13. • Repayable after the specific time period.
• Term/ Time/ Fixed Deposits.
• Emergency Closure.
• Penalty.
• Interest payable.
• Possibility of monthly payment.
• Nomination Facility.

14. OTHER DEPOSITS
• 2-in-1 deposits
• Smart Deposits
• Power Saving Deposits
• Automatic Sweep Deposits etc..

16. GENERAL
PRECAUTIONS
• Application forms.
• Specimen signature.
• Letter of introduction.
• Interview.
• Account in cash.
• Mandate in writing.

17. CONTD..
• Verification of Documents.
• Conversant with the provisions of special acts.
• Pay in slip books, cheque book and pass book.
• Passport size photograph.

18. THANK YOU