Banking Exam Question - What is 'Deposit' in Banks? What are the Bank Deposit Types? Explain

Introduction - Bank Deposit & It's Types

An important step in the Commercial Bank is to accept deposits. This accepts the amount that the various individuals and organizations collect. Depositors also get interest when they are collecting money, and they also feel their protection. Accepting deposits, the bank works to provide money security, interest, and pay during the request. Accept the deposit from the following three types of commerce banks:

(A) Checking/Current Account:

The current account is the same account. The amount deposited in this account can always be dropped when necessary. But bank does not provide interest on the amount deposited in this account. This account is useful for daily traders and businessmen.

(B) Savings Account:

People with small income gather their money in a savings account. This account can be deposited at any time. The bank also provides interest in the amount deposited in this account.

(C) Fixed Deposit account:

Accounting deposit is called Accounting Account for any fixed time period. Bank provides higher interest rate than the savings account deposited in this account. But the time specified by this account does not match the amount due to the period of time. If the deposited amount is deposited, then the bank should take the loan back on interest.