The various types of
deposits are as follows:
Current Deposits: Current Accounts are basically meant for
businessmen and are never used for the purpose of investment or savings. These deposits are the most liquid deposits
and there are no limits for number of transactions or the amount of
transactions in a day. Most of the
current account are opened in the names of firm / company accounts. 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.
No interest is paid by banks on
these accounts. On the other hand, banks
charges certain service charges, on such
accounts.
Saving Deposits: These
deposits accounts are one of the most popular deposits for individual
accounts. These accounts not only
provide cheque facility but also have
lot of flexibility for deposits and withdrawal of funds from the
account. Most of the banks have rules
for the maximum number of withdrawals in a period and the maximum amount of
withdrawal, but hardly any bank enforces these. However, banks have every right to enforce
such restrictions if it is felt that the account is being misused as a current account.
Recurring Deposits : These
are popularly known as RD accounts and are special kind of Term Deposits and
are suitable for people who do not have lump sum amount of savings, but are
ready to save a small amount every month.
Normally, such deposits earn interest on the amount already deposited
(through monthly installments) at the same rates as are applicable for Fixed
Deposits / Term Deposits. These are
best if you wish to create a fund for your child's education or marriage of
your daughter or buy a car without loans or save for the future.
Fixed Deposits: All
Banks in India (including SBI, PNB, BoB, BoI, Canara Bank, ICICI Bank, Yes Bank
etc.) offer fixed deposits schemes with
a wide range of tenures for periods from 7 days to 10 years. These are also popularly known as FD
accounts. However, in some other
countries these are known as "Term Deposits" or even called
"Bond". The term
"fixed" in Fixed Deposits (FD) denotes the period of maturity or
tenor. Therefore, the depositors are
supposed to continue such Fixed Deposits for the length of time for which the depositor
decides to keep the money with the bank.
However, in case of need, the
depositor can ask for closing (or breaking) the fixed deposit prematurely by
paying a penalty.
