Bank Deposits

Savings Account

Savings bank accounts are where money can be deposited and withdrawn when needed. Each bank requires a certain amount as a minimum balance in such accounts. This varies in rural and urban areas. Interest is earned starting from three percent based on the daily balance in the account. The customer will also get a check book and debit card. Cheques can be used to transfer money. Similarly, money can be withdrawn from one's own SB account using a debit card. ATMs and internet banking can be used for this. Zero balance accounts are also now available to attract more customers to the bank.

When you open a savings account, you will receive a passbook. A passbook is a book that the bank gives to the customer, recording the transactions made with the bank. It is called a passbook because it is ' passed ' here and there. Although the passbook belongs to the customer, the banker has the authority to write in it. A pay-in slip is used to go to the bank and withdraw money directly from the passbook. It has two parts. In both, the account number , amount , name , date , and information about whether the payment is made by cash or check are recorded. The banker will seal one part of the slip and return it to the customer as evidence.

Fixed Deposit (FD)

Fixed deposits are also called term deposits. These are deposits that earn higher interest. They can be invested for both short and long term. Long-term deposits earn higher interest than short-term deposits. Senior citizens get higher interest on fixed deposits. They can also get loans of up to . The bank will charge two percent more interest on the loan amount than the interest rate received on the deposit. The fixed deposit interest is received from the bank on or before the maturity date. The owner can withdraw the deposited amount in case of emergency with certain conditions. Various banks have fixed deposit schemes under different names like Swayamvardhani, Senior Citizens Savings Scheme, Sukanya Samriddhi , V Parivar.

Current Account

Current accounts are intended for traders , merchants , and institutions who have to make more transactions . They do not earn interest. Some banks charge a special charge called ' folio charge ' on current accounts . A current account is an account that allows you to deposit and withdraw money many times in a day. Depositing money in a current account is called a current deposit. Current accounts are mostly used by industrialists and merchants. You will get more checkbooks.

Overdraft is a special loan intended for traders and industrialists. It can be considered as a loan given from the customer's current account. If there is not enough money to withdraw from the current account, it is given through overdraft. It is only subject to a limit. Interest is charged only on the amount used. Overdraft is also allowed against the collateral of the traders' products. It is renewed at regular intervals.

Recurring Deposit

A recurring deposit is a scheme where a fixed amount is deposited every month for a fixed period. After the maturity, the investor gets back the principal and interest. The deposit that is paid without fail and completes the maturity period will get the interest of fixed deposits. A perpetual deposit is a similar investment to a recurring deposit. Permanent deposit deposits are deposits that banks collect through collection agents. The interest on these deposits is low. The money is returned only after the maturity period. The bank pays a commission to the agents who collect these deposits. The amount collected on one day must be deposited in the bank the next day.