Commercial Bank Deposits

Savings Deposit

• Objective: Designed to instill the habit of saving in individuals.

• Withdrawal Features: Money can be withdrawn according to user needs, though banks impose restrictions on the number of transactions and the specific amount limits per period.

• Interest: Banks typically offer low interest rates on these accounts.

Current Deposit

• Target Audience: Intended primarily for business transactions.

• Transaction Limits: Allows for an unlimited number of transactions within a single day.

• Interest: No interest is paid on the funds held in these accounts.

• Overdraft Facility: Allows account holders to withdraw more than their current balance within a predetermined limit.

Term Deposit or Fixed Deposit Account

• Purpose: For funds that do not need to be accessed immediately.

• Interest Rates: Offers higher interest rates compared to Savings Deposits.

• Maturity and Penalties: Interest may be reduced if funds are withdrawn before the maturity period. Interest can be collected upon maturity or at periodic intervals chosen by the depositor.

Recurring Deposits

• Mechanism: Involves depositing a fixed amount of money at regular intervals for a pre-specified period.

• Interest Yield: These deposits earn higher interest than Savings Deposits but generally lower interest than Fixed Deposits.