Commercial Bank Deposits

Vocabulary flashcards covering the different types of deposits offered to the public by commercial banks.

Savings Deposit

A type of deposit designed to instill saving habits, allowing withdrawals subject to bank-specific restrictions on frequency and amount, typically offering low interest rates.

Current Deposit

An account intended for business transactions that allows an unlimited number of daily transactions, pays no interest, and provides an overdraft facility.

Overdraft

A system provided for current accounts that allows a depositor to withdraw more money than the current balance within a predetermined limit.

Term Deposit or Fixed Deposit Account

A deposit for money not needed immediately that pays higher interest than a savings account, though withdrawing funds before maturity may reduce the interest rate received.

Recurring Deposits

Deposits made by regular intervals of a fixed amount for a specific period, earning interest rates higher than savings deposits but lower than term deposits.