At is one of the main functions of commercial bank to receive
surplus balance the people, firms and other institution in the form of opening
different types of bank accounts.
Following are the main kinds of bank account.
1.
Current
account.
2.
Term
deposit.
3.
Project
loss sharing account.
4.
P
and L term deposit o/c.
1.
Current account:
The current
a/c is also called “running account”. Which is continuously in operation. It is
used by customer to transfer money or withdraw deposit on demand. The customer
can withdraw their current deposits without pervious notice to the bank. The bank
has to accept the cheque provider to them within the limits of the account.
Important features:
a)
Amount:
This account is opened with the minimum amount of RS 1000/-
b)
Interest:
The interest is not paid on the
current account.
c)
Cheque:
The customer can withdraw amount
through cheques provided by banks.
d)
Overdraft:
The businessman are allowed overdraft
from this amount under prior agreement with the bank.
e)
Charges:
The banker can recover some charge of
the balance falls below of fixed minimum balance.
f)
Notice:
The customer can withdraw money from his
account any time without notice.
g)
Statement:
Statement of account is sent to
customer periodically or can be obtained any time on application.
2.
Fixed deposit account:
This account
is suitable for the people who have surplus money and don’t need such funds in
the near feature. The surplus money is deposited for a fixed period. The rate
of interest is higher than other accounts.
Important features:
a)
Fixed amount:
A fixed amount is deposited for a fix
period.
b)
Withdrawals:
The amount can be withdrawn before
maturity after surrounding the amount.
c)
Profit:
The amount of profit can be received after sixth month.
d)
Rate:
The rate of profit varies due to
variation of time period.
e)
Loan:
The loan facility is available
against fixed deposit account.
f)
Receipt:
A receipt is issued for the amount
deposited the receipt is called “fixed deposit receipt (FDR)”.
3.
Profit and loss sharing account:
The mentioned
accounts are opened by the banks. The deposits are invested in non-interest
bearing areas of business.
Important features:
a)
Amount:
This account
is opened with a sum of not less than RS.100.
b)
Withdrawals:
The amount
can be withdrawn eight (8) times in calendar month.
c)
Cheque:
The cheques
are used for taking money back.
d)
Notice:
A notice
of seven days is necessary for withdrawals of money more then certain limit.
e)
Profit:
The rate
of profit is declared after the blows of each half year.
f)
Statement:
The statement
of account is supplied to the customer at periodically interval.
1.
Profit and loss sharing term deposits account:
The PLS
term deposit account are opened for a fixed period of time. The time period
ranges for six months to five years and over. The people having surplus money
can use this facility to earn profit/income.
Important feature:
a)
Receipt:
The term
deposit receipt is issued to the customer. It shows the amount and time period
of deposit.
b)
Profit:
The
profit is paid after every six months on 30th June and December 31st.
c)
Cheque:
The PLS, term deposits account is a
non-operative account. Therefore cheque is not allowed. The term deposit receipt
is issued for withdrawal of full payments.
d)
Further deposits:
The further
deposits are accepted in multiply of RS1000. It may be 1000, 2000, ----- etc.
e)
Withdrawals:
The deposits
withdrawal before six month will not share in profit.
Account is is used to classify and summaries measurements of business activity an element in accounting system and there are 4 types of Accounts.
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