video -40 Accounts and deposits-demand deposit s

if someone has got money, then it can be kept in the banking system in mainly two ways viz. demand deposits and time deposit . In case someone wants to deposit money in demand form, then twokinds of accounts can be opened viz. current account and savings account. and in case someone wants to deposit money in the time form then again two kinds of account can be opened viz. fixed deposit account and recurring deposit account.
Demand deposit- funds held in demand deposit can be withdrawn at any time on demand without any advance notice to the depository Institution. banks issue cheques on this kind of deposit and cheques can be drawn on these deposits and hence demand deposits are called cheque able deposits.
1.Current account- bank is obliged to pay the money on demand. there is no limitation on number of transactions and value of transactions and these are the most liquid deposits. current account is used mainly for business purpose/companies and never used for saving purpose. No interest is paid by banks on these accounts and the bank charge certain service charge.
2.Savings account-usually meant for individuals, but there is restriction on the number of transactions and the value of transactions during a specified period. deposits in these accounts earn interest.
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