Types of deposits (Accounts)
- Current accounts. These are accounts where the depositor can withdraw any amount at any time by use of the cheques. For this reason, no interest is payable on this account. Current accounts are also called Demand deposit account.
- Savings accounts. This is where a pass book with a customer’s photograph is used instead of a cheques when depositing or withdrawing. Withdrawal on this account is restricted to a certain maximum amount. The owner of this account earns an interest but it is less than that earned on the fixed deposit account.
- Fixed/time deposit) account. Under this account, withdrawal cannot be made before the stated maturity period. The customer who owns this account earns a high interest rate depending on the maturity period.
CATEGORIES Economics
TAGS Dr. Bbosa Science
