The Financial Economy What is a bank deposit

 Bank deposit

Bank deposits consist of money placed in banking institutions to be saved, and these deposits are created for several purposes, including: saving account, money market accounts, or checking accounts, and the account holder has the right to withdraw the deposited funds as stipulated in the terms and conditions governing the account agreement , [1] There are two types of bank deposits such as demand deposits, which are the deposit of funds in an account that allows the depositor to withdraw his money from the account without prior notice or through a notice of less than seven days. The other type is time deposits, which are considered a deposit bearing interest that he keeps. A bank or financial institution for a specified period; As the depositor can only withdraw funds after giving notice, time deposits may pay higher interest rates than call deposits. [2]

Types of bank deposit accounts

Bank deposit accounts are classified on the basis of the purpose they serve, as follows: [3]

Bank savings account

This type of account is suitable for people with specific incomes looking to save money; As this type of account can be opened with a minimum initial deposit that differs from one bank to another, and funds can be deposited at any time in this account, and withdrawals are made either by signing a withdrawal form, by issuing a check, or by using a debit card. However, banks usually place some restrictions on the number of withdrawals from this account. [3]

Current deposit account

The savings bank account is not the best option for major businessmen, companies, and institutions, due to the restrictions imposed by these accounts on the number of withdrawals, so the current deposit account is the most suitable option for those categories; It allows for an unlimited number of withdrawals, and requires a certain minimum deposit during the opening of the account. The bank does not pay any interest on the balances in this type of deposit, but the account holder pays a certain amount every year as an operational fee. [3]

Fixed deposit account

This type of account is suitable for some bank clients who wish to deposit funds for a long time; Where funds are placed in a fixed deposit account; This is because they offer an interest rate at a higher rate than other accounts, and this type of account allows depositing a certain amount for a specific period that may range between 15 days and 3 years or more, during which it is not permitted to withdraw, however the depositor can

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