In banking there are 2 types of Deposits
1.Demand deposits.
2. Time deposits.
A demand deposit is money deposited into a bank account with funds that can be withdrawn on-demand at any time. The depositor will typically use demand deposit funds to pay for everyday expenses. For funds in the account, the bank or financial institution may pay either a low or zero interest rate on the deposit
Examples are savings accounts and current accounts.
A time deposit is an interest-bearing bank account that has a date of maturity, such as a certificate of deposit (CD). The money in a time deposit must be held for the fixed term to receive the interest in full. Typically, the longer the term, the higher the interest rate that the depositor receives.
Examples are Fixed deposits for 7 days to 10 years with interest based on no of days.
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