Type of Deposit

I. Demand Deposit:Customer can withdraw or deposit the amount as per requirement is known as demand deposit. For example: – Saving account & Saving Account
Saving Account: – Saving accounts are used for saving purpose by general people. Bank pay interest on the deposited amount, and limited transaction is allowed to the customer.
Current Account: – Current Account is used for business purpose; bank does not give any interest rate on the amount deposited in the current account. Unlimited transaction is allowed to the customer.
II. Time Deposit: – The amounts deposited for particular period of time are called time deposit. These deposits are repayable after the maturity of time. For example:-Recurring account, fixed deposit, Pension Deposit account and Cash Certificate.
Fixed Deposit Account: The amount is deposited for a certain period of time as per the bank. Generally the rate of interest is high and it cannot be matured before the maturity period.
Recurring account: – Recurring is opened by those customers who want to save regularly and for a certain period of time, minimum period of recurring account is 6months and maximum is 10years.
Minor Accounts: A minor is a person who has not attained legal age of 18 years. As per the contract Act, a minor cannot enter into a contract but as per negotiable instrument act, a minor can draw, negotiate endorse and receive payment on a negotiable instrument so as to bind all the persons expect him.

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