It can be accept deposit from members and non members. Bank borrow from the public in the form of accepting deposit term. They are savings Bank deposit, Recurring deposit, current deposit and .
SAVING BANK DEPOSIT :-
Bank accept small saving of people under this deposit. A customer can open savings bank account with 100 rupees. This is a demand liability. There deposits are maintained by banks in order to mobilize the small savings of the people 4.5% of interest is allowed to this deposit . Depositor can withdraw the deposit through cheques.
RECURRING DEPOSIT :-
It is a monthly savings deposit. After a particular period the principle amount along with interest will be refunded. Minimum rupees in 50 rupees loan are allowed up to 90% the deposits amount.
SWAYAMVARDHINI DEPOSIT :-
Like affixed deposit Swayamvardhini deposit agree to deposit its clients money with the banker for a fixed period . No interest will be given before the due date. Interest will be calculated as compound interest rates.
CURRENT DEPOSIT :-
A customer is allowed to draw cheques and withdraw money from their deposits at any time. The deposit are withdrawn whenever the customer wants to withdraw. Current account deposits are with drawable or payable on demand, hence they called demand liabilities also.
Bank generally do not pay interest for their accounts. Then accounts are mainly meant to meet the requirements of business people who frequently operate their accounts. There is no restrictions in the number of withdraw also of deposits and as such this very well suits the traders, businessman etc. who frequently make payments by means of cheques.
FIXED DEPOSITS :-
Under this deposit a customer agree to deposit his money with the banker for a fixed period. A fixed deposit is a contractual liability of the bank entered with the depositor to pay at a fixed or determinable future date the amount of money deposited plus interest accrued share on. The depositor can withdraw the money from the bank only after the expiry of the agreed period. The period may very from 31 days to any number of year. Maximum period is limited to 10 years. Bank generally pay a high rate of interest for this deposits as the banker in free and sure to use them within the period fixed. There are also called term liability or time liability. A fixed deposit receipt is not a negotiable instrument and therefore cannot be transferred by endorsement by a depositor infavour of another.
Interest will be given monthly , quarterly or at end of the deposited period. Senior citizen will be given 1% extra interest for this deposit from 6 months.
|Duration||Interest Rate||Sr Citizen|
|31 days - 45 days||6%||6%|
|46 days - 90 days||6.75%||6.75%|
|91 days - 179 days||7.25%||7.25%|
|180 days - 364 days||7.75%
|12 months-23 months||8.25%
|Above 23 year||8.00%
|1||Fixed Deposit||1000 and above||6% to 8.75%||31 days to 5 years||Interest can be tranfered to SB/RD/Any other bank account|
|2||Recuring Deposit||100 and above monthly||8.25%||1year to 8year||Quarterly compounding|
|3||Savings Deposit||100 and above||4.5%||no duration||Daily int calculation|
|4||Current Deposit||100 and above||nil||no duration||For institutions|
|5||Daily Deposit||100 and multiple||4.5%||Daily int calculation|
|6||Thrift Fund||250 and above||4.5%||no duration||Only for A class members, it can be converted to share|