...Types of Bank Accounts jyoti25 Download Share Add to Flag Embed Views: 2183 Category: Education License: All Rights Reserved Presentation Description class 11th commerce types of Bank a/c Comments Presentation Transcript Types of Bank Accounts: Types of Bank Accounts Saving,recurring ,Current ,Fixed deposit ,Multiple option deposit a/c Recurring Deposit-RD: Recurring Deposits are a special kind of Term Deposits offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits . It is similar to making FDs of a certain amount in monthly installments, for example Rs 1000 every month. This deposit matures on a specific date in the future along with all the deposits made every month. Thus, Recurring Deposit schemes allow customers with an opportunity to build up their savings through regular monthly deposits of fixed sum over a fixed period of time. The Recurring Deposit can be funded by Standing instructions which are the instructions by the customer to the bank to withdraw a certain sum of money from his Savings/ Current account and credit to the Recurring Deposit every month. When the RD account is opened, the maturity value is indicated to the customer assuming that the monthly instalments will be paid regularly on due dates. If any instalment is delayed, the interest payable in the account will be...
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...Bank Deposit Account Lesson 16 Bank Deposit Account You have already learnt that the main banking activities consist of acceptance of deposit from the public for the purpose of lending to businessmen and others who may seek loans. Actually the money deposited in any bank is mostly the saving of the people. As you know, if someone earns money and has regular income, he or she not only spends it for day-to-day expenses but also tries to save a part of the income for future needs. Money may be needed in future for various purposes like medical treatment in case of illness in the family, expenses on account of marriage, or for higher studies of the children, or to celebrate religious festivals, etc. The money saved to meet future needs may be kept at home. But will it be safe at home? It may be stolen. Moreover, the money saved will remain idle at home without any return. So people keep their savings with someone where it will be safe and earn a return. Bank is such a place where money once deposited remains safe and also earns interest. In this lesson, we shall learn about the types of deposit accounts that can be opened in a bank, and also discuss how a savings bank account can be opened and operated. 16.1 Objectives After studying this lesson, you will be able to: classify bank deposit accounts; discuss the steps to be taken for opening a Savings Bank Account; and describe the procedure of operating a Savings Bank Account. 15 Business Studies 16.2 Types of...
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...Managing Personal Finances with Demand Deposit Accounts Summary: Demand deposit accounts offer individuals many different options and benefits when managing their personal finances. Deposit accounts can be used to manage everyday expenses, keep track of personal cash flow and save for the future while earning a return. There are many different types of deposit accounts, each offering a means to achieve specific goals. In the following pages, I will break down some different types of accounts, discuss their purpose and show how each one can make achieving personal financial goals a simpler, more attainable task. Demand Deposit Accounts, or DDAs, are accounts offered by financial institutions such as banks and credit unions that allow account holders to deposit and withdraw funds and perform many other types of transactions. These accounts are called demand accounts because they give the client access to funds upon demand, either limited or unlimited depending on the type of account. The main purpose of these accounts are to offer clients, personal or business, a secure means of storing, transferring, spending, or saving money. The first and most common type of DDA is a checking account. A checking account offers the convenience of being able to deposit and withdraw funds and issue checks, or drafts, to transfer money to any individual or business. This is a much safer way to keep money that is used for everyday expenses because it is insured by the federal...
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...Managing Personal Finances with Demand Deposit Accounts Summary: Demand deposit accounts offer individuals many different options and benefits when managing their personal finances. Deposit accounts can be used to manage everyday expenses, keep track of personal cash flow and save for the future while earning a return. There are many different types of deposit accounts, each offering a means to achieve specific goals. In the following pages, I will break down some different types of accounts, discuss their purpose and show how each one can make achieving personal financial goals a simpler, more attainable task. Demand Deposit Accounts, or DDAs, are accounts offered by financial institutions such as banks and credit unions that allow account holders to deposit and withdraw funds and perform many other types of transactions. These accounts are called demand accounts because they give the client access to funds upon demand, either limited or unlimited depending on the type of account. The main purpose of these accounts are to offer clients, personal or business, a secure means of storing, transferring, spending, or saving money. The first and most common type of DDA is a checking account. A checking account offers the convenience of being able to deposit and withdraw funds and issue checks, or drafts, to transfer money to any individual or business. This is a much safer way to keep money that is used for everyday expenses because it is insured by the federal government...
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...bank deposit; 3. Non-deposit bank resources: types and means of attracting; 4. Banking resources acquired through the issuance of securities: bank certificates, bills (drafts), long-term bonds; 5. Banking resources acquired on the interbank market; -1- The structure of attracted resources, and their importance for the conducting banking activities; In the world of banking practice, the attracted resources of a bank can be: 1) Deposit - are formed on the initiative of clients who come to deposit money in the banks, 2) Non-deposit: - Resources arising from the issue of equity (bank certificates, bills of exchange, and bond); - Resources purchased from other banks (centralized bank credit (from National Bank) and decentralized (from other commercial banks)); In the total amount of banking resources attracted resources occupy the dominant position. Their share of different banks varies between 85 - 90%. -2- The characteristics and typology of a bank deposit; Deposit – the amount of money placed into a banking institution for safekeeping, through depositing money in a bank account. Deposits are classified according to: * Depositor’s category: 1. Individuals; 2. Legal entities; * The terms of the contract, which stipulates how and when is deposit’s maturity: 1. Demand deposit; 2. Term deposit; 3. Savings deposit; * Demand deposits have the following characteristics: * Bank’s means may be deposited in the account and withdrawn...
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...DEPOSITS A deposit account is a savings account, current account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the bank, and represents the amount owed by the bank to the customer. Some banks charge a fee for this service, while others may pay the customer interest on the funds deposited. Individuals and corporations need money to pursue their daily business. They place the money on deposit to earn interest, using the money market. Types of deposits are: * Call deposits, the depositor has the right to use the money at any time, sometimes short notice periods are agreed. As the depositor can show up any time to request the deposit back, it is also called sight deposit. * Fixed deposits bear a fixed time and fixed interest rate, and are therefor also called term or time deposits. * Overnight lending occurs usually from noon to noon, using a special rate. to give as security or in part payment. Major Types * Checking accounts: A deposit account held at a bank or other financial institution, for the purpose of securely and quickly providing frequent access to funds on demand, through a variety of different channels. Because money is available on demand these accounts are also referred to as demand accounts or demand deposit accounts. * Money market account: A deposit...
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...Deposit Products Islami Bank Bangladesh Limited mobilizes deposits through different types of accounts. Al-Wadeah Accounts Mudaraba AccountsAl-Wadeah Accounts Islami Bank Bangladesh Limited operates Al-wadeah Current Account on the principles of Al-wadeah. The Bank commits to refund money deposited in these Accounts on the demand of customers. On the other hand the Bank takes permission from customers that the Bank may utilize their money. Customers may operate these Accounts as their desires. No profit is disbursed in these Accounts and depositors do not bear any loss Mudaraba Accounts In the perspective of these Accounts the Bank is 'Mudarib' and customers are 'Shahib Al-Mal'. On behalf of depositors, the Bank invests their deposited money and distributes minimum 65% of investment-income earned through deployment of Mudaraba funds among Mudaraba depositors after the closing of the year. * Al-Wadeah Current Account (AWCA) * Mudaraba Savings Account (MSA) * Mudaraba Term Deposit Account (MTDR) * Mudaraba Special Notice Account (MSNA) * Mudaraba Hajj Savings Account (MHSA) * Mudaraba Special Savings (Pension) Account (MSSA) * Mudaraba Savings Bond (MSB) * Mudaraba Monthly Profit Deposit Account (MMPDA) * Mudaraba Muhor Savings Account (MMSA) * Mudaraba Waqf Cash Deposit Account (MWCDA) * Mudaraba NRB Savings Bond (MNSB) Account * Mudaraba Foreign Currency Deposit Account (MFCD) * Students Mudaraba Savings Account (SMSA) * Mudaraba Farmers Savings...
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...CONTENTS CHAPTER 10. DIRECT DEPOSIT SUBCHAPTER I. GENERAL PARAGRAPH PAGE 10.01 Introduction 10-1 10.02 How to Sign Up for Direct Deposit 10-2 10.03 How to Find Direct Deposit Data on a Check. 10-3 10.04 How to Process Requests for Direct Deposit. 10-4 SUBCHAPTER II. BDN CHANGES 10.05 Summary of BDN Changes 10-5 10.06 BDN Letters for Direct Deposit 10-6 10.07 BDN Paragraphs for Direct Deposit 10-12 FIGURE Figure 10.01 Campaign Letter 10-7 Figure 10.02 Direct Deposit Acknowledgment Letter (Establishment) 10-8 Figure 10.03 Direct Deposit Acknowledgment Letter (Change). 10-9 Figure 10.04 Direct Deposit Acknowledgment Letter (Cancellation). 10-10 Figure 10.05 Direct Deposit Reject Letter. 10-11 Figure 10.06 Direct Deposit Acknowledgment Paragraphs (Establishment). 10-12 Figure 10.07 Award Letter Paragraphs for Direct Deposit Change. 10-13 Figure 10.08 Award Letter Paragraphs for Cancellation. 10-14 Figure 10.09 Paragraphs When Direct Deposit Data Is Unchanged. 10-15 Figure 10.10 Paragraphs When Veteran Does Not Have Direct Deposit. 10-16 CHAPTER 10. DIRECT DEPOSIT SUBCHAPTER I. GENERAL 10.01 INTRODUCTION a. Purpose. This chapter explains direct deposit for the chapter 30 benefit program. (The Education Service will announce by separate letter the exact date that direct deposit will be available.) NOTE: "Direct deposit" and EFT (Electronic Funds Transfer) mean the same thing in...
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...Common Types of Investments There are several ways to invest your hard earned dollars. The key to finding the best type of account you want to invest in is to be educated to the types of investment accounts available and advantages and disadvantages of each. It may take some time to find the right type of account, but, with the right information, the best decision can be made. I used the Regions bank website to investigate four common types of investment accounts: checking accounts, money market accounts, passbook savings accounts, and certificates of deposits. Although rates may differ between banks, I will also use the rates as typical examples of the type of interest that can earned from each of these accounts. With the information I find, I will decide which would be the best choice to invest $1,000. Checking accounts are common accounts that most people have and use daily. While some have monthly fees, most banks offer some type of free checking as long as the account meets certain criteria. Regions offers a checking account that has an $8 monthly fee, which will be waived if the account meets one of the following criteria: direct deposit, 15 electronic transactions per month, or a $1,000 average monthly balance. Some other advantage of this type of account is the convenience of having your funds available immediately, low risk, and you can use online banking. You would either be able to withdraw by going into the bank, or use the free ATM/debit card that is...
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...want to lend and those who want to borrow. Examples of other intermediaries? Depositary Intermediaries are those that get funds from the public and use them to finance their business. Non depositary Intermediaries are those that do not take or hold deposits. 2. What types of banks are there? How do they differ from each other? Commercial bank; one of the big distinctions between commercial banks and other depository institutions is that commercial banks are owned by stockholders who expect a profit on their investments. Savings and Loans Associations; they receive most of their deposits from individuals. Charted by either state or federal governments, these institutions grew by focusing on real-estate lending for people. Mutual Savings Bank; receive deposits primarily from individuals and concentrate also on private real- estate mortgages. Mutual savings bank or owned by depositors as well. These state charted banks are sometimes granted greater powers with regard to assets and liabilities than S&Ls but usually not as much as those of commercial banks. Credit Unions; are also owned by depositors, but there are a couple of key differences. First, users of credit unions must be members. Membership is usually based on some type of association, such as a common employer, a certain line of work, a geographical region, or even a social or religious affiliation. Second , credit unions are not-for-profit financial institutions that exists to benefit the members. 3. List and...
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...Deposit Management Practices Of Bank Deposit Mangement: Deposit management consists of acquisitions of stable and low cost deposit for the banking business. Banks are not only dealers in money but also manufacturers of credit money. It is in the sense of manufacturing that the concept of credit creation is used. Similarly deposit creation is an important function of commercial banks. Without deposit they cannot lend at all. When the banks receive cash from customers, deposit are created . These deposits may be current, saving or fixed. Depositors choose the types on the basis of their needs and requirements like; safety, convenience or earning. People deposit their income in commercial banks because bank vault are safer that home coffers. The bank attracts deposits from the people either by means of offering interests or facilities. Business people want seek for facilities rather than interest. Non business people generally select deposits having interests. The type and characteristics of deposits are constantly changing as banks are offering new product to attract new consumers. unlike the past, people are nowadays more aware and have confidence on banks on such the banking habit growing gradually. Deposit management involves the collection of adequate bank deposits required for the efficient and effective operation of banking business. Deposit management doesn’t merely concern with the high volume but also with low cost as well and its stability so as to produce competitive...
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...Current Account ? Who uses current accounts? Current Accounts in Banks Current Accounts are basically meant for businessmen and are never used for the purpose of investment or savings. These deposits are the most liquid deposits and there are no limits for number of transactions or the amount of transactions in a day. Most of the current account are opened in the names of firm / company accounts. Cheque book facility is provided and the account holder can deposit all types of the cheques and drafts in their name or endorsed in their favour by third parties. No interest is paid by banks on these accounts. On the other hand, banks charges certain service charges, on such accounts. Features of Current Accounts : 0 (a) The main objective of Current Account holders in opening these account is to enable them (mostly businessmen) to conduct their business transactions smoothly. (b) There are no restrictions on the number of times deposit in cash / cheque can be made or the amount of such deposits; (c) Usually banks do not have any interest on such current accounts. However, in recent times some banks have introduced special current accounts where interest (as per banks' own guidelines) is paid (d) The current accounts do not have any fixed maturity as these are on continuous basis accounts What is a Savings Bank Account ? Who uses Saving Bank Accounts ? These deposits accounts are one of the most popular deposits for individual accounts. These accounts not only...
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...documents the event of a bank customer withdrawing money from an ATM. Illustrate the use case using Visio or a similar product. This use case describes how the Bank Account Holder uses the ATM to withdraw money his/her bank account. The actors are the Account Holder and the bank. Some of the preconditions that already in us is that: (1) there is an active network connection to the Bank; and (2) the ATM has cash available. In this use case the basic flow of events consists of the following: (1) The Account Holder places card in card slot; (2) the system prompts Account Holder for PIN; (3) the Account Holder enters in PIN; (4)the system verifies the card and PIN are valid and prompts user to select a transaction; (5) the bank customer selects an account; (6) the Account Holder selects Withdrawal; (7) the system retrieves account information and prompts account holder for amount to withdraw; (8) the Account Holder enters the amount; (9) the system verifies that there is enough money in the account to support the withdrawal; (10) the system verifies there is enough cash in the machine to support the withdrawal and replies with a go/no go reply telling if the transaction is ok; (11) The system reduces the account by the amount requested and dispenses money to the Account Holder; (12) the card is returned to the Account Holder; (13) the receipt is printed; and finally; (14) the use case ends successfully. Alternate Course: Card Rejected. In this course flow of events are alternative...
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...money matters. A person can deposit his savings in the bank and can with-draw when he requires it. Bank pays inter at a fixed rate on the deposits. There are two main functions of a bank: (i) Deposits the money of people (ii) Gives back the demanded money cheque, draft, etc. Advantages of bank account Following are the advantages of a bank account: 1. There is no possibility of theft of t money kept in a bank. 2. Bank pays interest on deposits where the money kept at home fetches no interest. 3. A person spends economically in ord to deposit maximum amount in the bar 4. One can avail the facility of bank lock by having a bank account. Valuables jewellery, share certificates, other important documents, etc. can be kept safe in the locker. 5. Transaction of money from different places is possible through bank. 6. Small amount deposited at regular intervals becomes a considerable amount after sometime. This money can be invested in business, etc. Depositing money in a bank There are three main types of bank]' accounts for depositing money: 1. Fixed Deposit Account 2. Savings Account 3. Current Account 1. Fixed Deposit Account It is also known as 'Term Account'. Here the money is deposited for a fixed period of time. This period is normally varies from 15 days to 5 years. The longer the term of deposit, the higher is j the rate of interest. If a depositor wants to withdraw money before the expiry of the fixed period, he will not get the...
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...and deposits are the main strength of the banks to provide loan. And the interest earned from the difference borrowing and lending is the major portion of banks income. Banks also earns from variety of operation. General banking is the side where banks offer different alternatives to the clients to deposit and remit their money. Accounts division is also included in general banking. To encourage the clients, bank offers different options in front of their clients. Most of these options are very much similar between the banks, but the customer services and facilities may not be the same. First Security Islami Bank Limited has variety of services provided to the retail as well as for corporate clients. The services provided under general banking include the following: * Account opening * Account closing * Cheque book issue * Remittance * Clearing * Crossing * Endorsements * Dispatch Account opening: Initially all the accounts are opened through deposit money by the customer and these accounts are called deposit account. Normally a person needs to open an account to take services from the bank. Without opening an account, one can not enjoy variety of services from the bank. Thus, the banking usually begins through the opening of the account with the bank. Bank accounts are mainly of three (3) types: 1. Al-Wadiah Current Deposit Account(CD) 2. Mudaraba Savings Deposit Account(SB) 3. Mudaraba Term Deposit Receipt/Account(MTDR) ...
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