Meaning:
-Bank accepts money as deposits mostly in four
ways:
1. Current Account
2.Saving Account
3. Fixed Deposit
Account
4. Recurring
Deposit Account.
Following are
some of the important types of Bank’s Accounts:
1.
Current Account: - A Current
Account is meant for businessmen and institutions. There are no restrictions on
the number and amounts of withdrawals from this account. On opening this
account, the account holder is given a paying-in-slip book, a Chequebook and a
Pass book. Cheques, bills of exchange, dividend warrants received from outside
parties can be deposited in this account for collection overdraft facility is
granted only to current account holder.
2.
Saving Account: -A Saving
Account aims at promoting the habit of saving among the fixed income earners.
Interest at certain rates is paid on the balance in this account. Money can be
withdrawn by cheque or withdrawal slip. Howe ever, there are restrictions on
the number of withdrawals including the maximum amount that can be withdrawn
art a time. Overdraft facility is not granted for this account.
3.
Fixed Deposit Account: - A fixed
deposit account is opened by those who have surplus funds. Under this account,
a certain amount is deposited for a fixed period. Higher rate of interest is
paid on the fixed deposits. The rate of interest depends upon the period of
deposits. Money can not be withdrawn before the date of maturity.
4.
Recurring Deposits Account: - A recurring
deposit account is opened for some long-term objective such as marriage or
education of children or purchase of costly articles, etc. under this account,
a fixed sum is to be deposited every month for the fixed period.
The following are some of the important types of Cheques:
1.
Bearer Cheque: -When the word
“or bearer” appearing on the face of the cheque are not struck off, the cheque
is called a ‘bearer cheque’. The bearer cheque is payable to the person
specified therein or to any one else who presents it to the bank for payment.
It is also called a risk cheque.
2.
Order Cheque: -When the word ‘bearer’
appearing on the face of the cheque is struck off or when in its place the word
‘order’ is mentioned or when there is neither the word ‘bearer’ nor ‘order’ on
the face of the cheque, the cheque is called an order cheque’. Such a cheque is
payable to the person specified therein as the payee, or to any one else to
whom it is endorsed.
3.
Open Cheque: -When a cheque is not
crossed, it is known as an ‘open cheque’ or ‘uncrossed cheque’. The Payment of
such a cheque can be obtained at the counter of the bank. An open cheque may be
a bearer cheque or an order one.
4.
Crossed Cheque: -When a cheque
bears across its face two parallel lines with or without additional words like
‘& Co’. or ‘Account Payee’ or ‘Not Negotiable’. It is known as a ‘crossed
cheque’. A crossed cheque cannot be Encashed at the cash counter of a bank but
it can only be credited to the payee’s account.
5.
Ante-dated Cheque: - If a Cheque
bears a date earlier then the date on which it is presented to the bank, it is
called an ‘antedated’ cheque. Such a cheque is valid up to six months from the
date of the cheque.
6.
Post-dated cheque: - If a Cheque
bears a date which is later than the date of
presentation, it is known as ‘post-dated cheque’. A post dated cheque cannot be
honoured earlier than the date on the cheque.
7. Stale Cheque: -If a cheque is presented for payment after six months
form the date of the cheque it is called ‘Stale Cheque’. A stale cheque is not
honoured by the bank.
