What is the deposit and savings banks in operation
Posted on Oct 12, 2000 08:15:27 AM
Implementation of bank deposit and savings operations associated with the opening of deposit and savings accounts.
Deposit (savings) account – an account that is taken into account the customer’s funds, loaned to the bank.
strong> All bank deposits are classified as follows.
1. By category of depositor in:
■ deposits of individuals;
■ deposits of legal entities.
2. The shape of withdrawals:
■ demand deposits – funds that can be claimed at any time without prior notice to the bank by the customer;
■ Time deposits – funds attracted by banks for a specified period;
■ conditional deposits – funds that are subject to withdrawal upon the occurrence of pre-negotiated terms.
■ unusual deposits – new types of deposits that can not be attributed to any of the above.
Feature of the deposit lies in its dual ability to generate income: on the one hand, the bank pays interest for the temporary use of funds, accounting income for the client on the other hand, a bank, investing the resources received, makes a profit. Consequently, the greater the profit the bank expects to receive from the investment of the resources, the higher the price he paid for them.
Deposits. For demand deposits include: demand deposits of the population, settlement and other accounts of legal persons (other than term deposit accounts), account type “Laro”. The main objective of all these types of deposits is to serve the current calculations, which implies the possibility of the account holder at any time to withdraw funds. Consequently, they are short the resources to the bank, ie, the bank can not invest obtained on demand deposits resources for the long term and, therefore, can not expect to make big profits.
Based on the characteristics of the deposit to bring double income, one can conclude that the remuneration payable on demand deposits is minimal.
World practice shows that the average interest rate on demand deposits of the population does not exceed 0,5-2% at steady state economy.
Time deposits. Term deposits – is cash customers, which are transmitted to banks for a certain period.
Time deposits are divided into
■ proper time deposits;
■ time deposits with notice.
Actually deposit – this deposit, under which the transfer of funds to the bank made for a certain period under the terms or conditions of the contribution of the deposit agreement.
Classic conditions a deposit include:
1) the amount of the deposit;
2) period, after which the bank pays the client to pay;
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