The name refers to the core activity they perform: take savings from one customer and make loans to another. Here you can publish your research papers, essays, letters, stories, poetries, biographies and allied information with a single vision to liberate knowledge. Joint stock companies Limited Liability Companies A company is registered under companies Act has a legal status independent of that of the share-holders. Must Read — There are two types of deposits: Demand deposits:- The money we keep in our saving accounts is like a medium of exchange and this is called Demand deposits. Who use Recurring Deposit Accounts? Saving account holders are given cheque book facility 3.
However, with the focus of government to have a bank account for everyone under the scheme of , you can open up a bank account for free if you do not have one and enjoy various facilities offered by banks. The longer the period, the higher is the rate of interest offered. The Savings banks Accounts are preferred by individuals and provide liquidity for private and small businesses sometimes. Further, banks also provide a combination of demand and time deposits in the form of various products. After Providing Various Terms of Banking — Know Their Actual Meaning and Banking in India — A comprehensive list of all Banks today we are providing Types of different bank Deposits in India. On the basis of their nature, time deposits may be of three types as follows: · Fixed deposits: In this type of time deposit, a fixed rate of interest is paid. Savings account and Current account are demand deposits.
The cost to maintain the accounts is high and banks ask the customers to keep a minimum balance. A trustee cannot delegate the powers to other Trustees except as provided for in the Trust Deed. The money can be borrowed for short term and to be paid back with interest. Time Deposits: When money is deposited with tenure it cannot be withdrawn from the deposit before its tenure ends. Moreover, the makes retail banks behave more like they did before the housing bubble—they take deposits from customers and invest conservatively, and there are limits on the type of speculative trading banks can engage in.
The account holder can withdraw his money anytime. However, such type of fixed deposits have not been popular till date. A saving account can be opened with or without cheque book facility. However, now a days small banks are forced to offer higher rate of interest to attract more deposits. The rate of interest to be allowed on fixed deposits is governed by rules laid down by the.
Consumers deposit money which they can withdraw as desired on demand. The interest provided by Public sector bank is only 4%, however, some of the private banks like Yes Bank and Kotak Bank offers interest between 6-7%. This rate varies from bank to bank. These deposits are usually targeted at persons who are salaried or receive other regular income. New regulations: changed much of that by making broad changes to financial regulation. Minimum Balance: Usually saving accounts need a minimum balance in the banks to keep the account active however No Frill accounts require either nil or low minimum balance to be maintained. The rate of interest on such deposits keeps on varying with the prevalent market rates i.
Big name investment banks failed Lehman Brothers and Bear Stearns in particular while others reinvented themselves. Re-investment deposits: Interest is compounded quarterly and paid on maturity, along with the principal amount of the deposit. Banks pay deposit rates on savings and other investment accounts. Savings Bank deposit: These deposits encourage savings among the people. What is a Current Account? Must Read — Term Deposits:- Term Deposits are of three kinds:- Fixed deposits: A fixed rate of interest is paid at fixed, regular intervals.
The customer gets cheque book facility for current account. Recurring Deposit It is a special type of term deposit where you do not need to deposit a lump sum savings rather a person has to deposit a fixed sum of money every month which can be as low as Rs 100 per month. Interest is also paid by the banks on the savings account. Cheque book facility is provided and the account holder can deposit all types of the cheques and drafts in their name or endorsed in their favour by third parties. . Current Account It is a demand deposit and is meant for businessmen to conduct their business transactions smoothly.
In the Flexi Deposits amount in savings deposit accounts beyond a fixed limit is automatically converted into term-deposits. It has perpetual succession like companies; but it does not require any registration. Current Account A current account is always a Demand Deposit and the bank is obliged to pay the money on demand. The rate of interest on fixed deposits depends upon the period of deposits. In case instalment is delayed, the interest payable in the account will be reduced and some nominal penalty charged for default in regular payments. The partnership deed will contain names of the partners, objective of the partnership, and other operational details, which should be taken note of by the bank in its dealings.
The basic objective of the current accounts is to provide flexible payment methods to the business people and entities. Must Read — Recurring Deposits:- Under this type of deposit,the depositor is required to deposit a fixed amount of money every month for a specific period of time. Current Accounts in Banks Current Accounts are basically meant for businessmen and are never used for the purpose of investment or savings. However, the bank may charge some penalty for delay in paying the installments. This means that depositor is exposed to the Currency rates risk. Miscellaneous Deposits :- introduced several deposit schemes to attract deposits from different types of people,like Home Construction deposit scheme, Sickness Benefit deposit scheme, Children Gift plan, Old age pension scheme, mini deposit scheme ,etc.