Definition
Content
Project Report on Bank Deposit Schemes
Bank Definition
An organization, usually a corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them, discounts notes, makes loans, and invests in securities, collects checks, drafts, and notes; certifies depositor¶s checks; and issues drafts and cashier¶s checks. A bank is the place where they accept deposits from people and lend loans and charge interest on them and performs agency functions,and provide certain facilities like providing lockers facilities and perform certain on the basis of its motive.
Types of Deposit Accounts
The bank deposits can also be classified into Demand deposits Time deposits.
Demand deposits:- It is a deposits payable on demand through cheques or otherwise.
Demand deposits serve as a medium of exchange, for their ownership can be transferred from one person to another through cheques and clearing arrangements provided by banks. They have no fixed term to maturity.
Time deposits:- It is a deposits which are not payable on demand and on which cheques
cannot be drawn. They have a fixed term to maturity. A certificate of deposit (CD), for example, is a time deposit. Demand and time deposits are two broad categories of deposits. There are several deposit accounts offered by banks in India; but they can be classified into three main categories: Current account Savings bank account Term deposit account
Current Deposits
A current account is a form of demand-deposit, as the banker is obliged to repay these liabilities on demand from the customer. Withdrawals from current accounts are allowed any number of times depending upon the balance in the account or up to a particular agreed amount. Current deposits are non-interest bearing. Current account deposits account for the smallest fraction.
Savings Bank Deposits
Savings deposits are a form of demand deposits, which is subject to restrictions on the number of withdrawals as well as on the amounts of withdrawals during any specified period. Further, minimum balances may be prescribed in order to offset the cost of maintaining and servicing such deposits. Savings deposits are deposits that accrue interest at a fixed rate set by RBI (3.5) percent as of January 2010.
Term Deposits
A "Term deposit" is a deposit received by the Bank for a fixed period, after which it can be withdrawn. Term deposits include deposits such as Fixed Deposits / Reinvestment deposits/ 23 Recurring Deposits etc. The term deposits account for the largest share and have remained within the range of 61% to 67 % of total deposits in the recent years.
Types of Deposit Scheme
No-frills Savings Bank Account In order to include a larger cross-section of the population, who are at the bottom of the pyramid, to avail of the banking services who could not avail of the same on account of some restrictive clauses, namely, minimum initial deposit for opening of the account which is difficult to arrange by such population, maintenance of minimum balance failing which charges are levied etc.
Friend-in-Need Schemes
This Term Deposit earns high interest and simultaneously offers overdraft facility through a Current Account. Cheque facility is available for withdrawal of money limited to 90% of the deposit. The drawals together with interest can be paid back in instalments, without affecting the growth of the deposit. This unique combination of fixed deposit with cheque facility comes as your true friend in meeting your emergency needs.
Laksmi Yojana
It is a long term Recurring Deposit scheme with variable monthly deposits. The interest on deposit is calculated as the minimum monthly balance between the 10th and the last day of a month, and is credited to the account every half year. The amount deposited will attract interest as applicable to Term Deposits. Upto 90% loan facility on deposit amount is available at a nominal interest. The Yojana is best suited to shaping a bright future for your child. Kuber Yojana A long term fixed deposit scheme. Interest is compounded every quarter by way of reinvestment. Thus the scheme generates a large sum of money at the time of maturity. The scheme meets the need for a safe long term investment.
Bank Definition
An organization, usually a corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them, discounts notes, makes loans, and invests in securities, collects checks, drafts, and notes; certifies depositor¶s checks; and issues drafts and cashier¶s checks. A bank is the place where they accept deposits from people and lend loans and charge interest on them and performs agency functions,and provide certain facilities like providing lockers facilities and perform certain on the basis of its motive.
Types of Deposit Accounts
The bank deposits can also be classified into Demand deposits Time deposits.
Demand deposits:- It is a deposits payable on demand through cheques or otherwise.
Demand deposits serve as a medium of exchange, for their ownership can be transferred from one person to another through cheques and clearing arrangements provided by banks. They have no fixed term to maturity.
Time deposits:- It is a deposits which are not payable on demand and on which cheques
cannot be drawn. They have a fixed term to maturity. A certificate of deposit (CD), for example, is a time deposit. Demand and time deposits are two broad categories of deposits. There are several deposit accounts offered by banks in India; but they can be classified into three main categories: Current account Savings bank account Term deposit account
Current Deposits
A current account is a form of demand-deposit, as the banker is obliged to repay these liabilities on demand from the customer. Withdrawals from current accounts are allowed any number of times depending upon the balance in the account or up to a particular agreed amount. Current deposits are non-interest bearing. Current account deposits account for the smallest fraction.
Savings Bank Deposits
Savings deposits are a form of demand deposits, which is subject to restrictions on the number of withdrawals as well as on the amounts of withdrawals during any specified period. Further, minimum balances may be prescribed in order to offset the cost of maintaining and servicing such deposits. Savings deposits are deposits that accrue interest at a fixed rate set by RBI (3.5) percent as of January 2010.
Term Deposits
A "Term deposit" is a deposit received by the Bank for a fixed period, after which it can be withdrawn. Term deposits include deposits such as Fixed Deposits / Reinvestment deposits/ 23 Recurring Deposits etc. The term deposits account for the largest share and have remained within the range of 61% to 67 % of total deposits in the recent years.
Types of Deposit Scheme
No-frills Savings Bank Account In order to include a larger cross-section of the population, who are at the bottom of the pyramid, to avail of the banking services who could not avail of the same on account of some restrictive clauses, namely, minimum initial deposit for opening of the account which is difficult to arrange by such population, maintenance of minimum balance failing which charges are levied etc.
Friend-in-Need Schemes
This Term Deposit earns high interest and simultaneously offers overdraft facility through a Current Account. Cheque facility is available for withdrawal of money limited to 90% of the deposit. The drawals together with interest can be paid back in instalments, without affecting the growth of the deposit. This unique combination of fixed deposit with cheque facility comes as your true friend in meeting your emergency needs.
Laksmi Yojana
It is a long term Recurring Deposit scheme with variable monthly deposits. The interest on deposit is calculated as the minimum monthly balance between the 10th and the last day of a month, and is credited to the account every half year. The amount deposited will attract interest as applicable to Term Deposits. Upto 90% loan facility on deposit amount is available at a nominal interest. The Yojana is best suited to shaping a bright future for your child. Kuber Yojana A long term fixed deposit scheme. Interest is compounded every quarter by way of reinvestment. Thus the scheme generates a large sum of money at the time of maturity. The scheme meets the need for a safe long term investment.
