State four types of deposits.
Solution:
1) Time Deposits:
Time deposits are called time deposits because they are repaid to the customers after the expiry of decided time.
2) Fixed Deposit:
A fixed deposit account is an account where a fixed amount is kept for a fixed period of time bearing a fixed interest rate. The rate of interest is more as compared to saving bank account and varies with the deposit period.
3. Recurring Deposit:
It is operated by salaried persons and businessmen having a regular income. A certain fixed sum of money is deposited into the account every month. Withdrawal of accumulated amount along with interest is paid after the maturity date.
4. Demand Deposits:
Demand deposits are those which are repaid to customers whenever they demand. That means money can be withdrawn as per the wish of the customer through withdrawal slips, Cheques, ATM cards, online transfer, etc.
