Deposit Accounts
beginner22 min read
The four core deposit products - savings, current, fixed and recurring - how demand and time deposits differ, the ideas of nomination, joint operation, and TDS on interest, and where deposit insurance fits.
What you will be able to do
- Distinguish demand deposits from time deposits.
- Describe savings, current, fixed and recurring deposit accounts and who each suits.
- Explain nomination, mode of operation, and premature withdrawal of a term deposit.
- State what deposit insurance covers and up to what limit.
What is inside this lesson
- 1Demand deposits and time deposits
- 2Savings and current accounts
- 3Fixed and recurring deposits
- 4Nomination, joint operation and TDS
- 5Deposit insurance
- 6Common confusions
- 7Quick revision
- 8Worked example: match the account to the need
- 9Practice
Get Pro for full access. This is section 1 of 9; the rest of the lesson opens with Pro at onelystop.in/upgrade.
Demand deposits and time deposits
Deposits split by when the bank must repay.
- A demand deposit is repayable on demand, in full, at any time. Savings and current accounts are demand deposits. They are part of a bank's liquid liabilities.
- A time (term) deposit is repayable only after a fixed period. Fixed and recurring deposits are time deposits. They pay a higher rate because the bank can plan around the money.
Both are counted in a bank's net demand and time liabilities (NDTL), the base for the CRR and SLR.
The lesson itself is for members
Reading the 9 sections above is free. A free account opens the first 2 topics of every subject in full, along with flashcards and private notes.