Advantages And Disadvantages Of Bank Deposits

Bank Deposits

Bank deposits consist of money placed into banking institutions for protection. These deposits are made to deposit accounts such as savings accounts, checking accounts and money market accounts. The account holder has the right to withdraw deposited moneys, as set forth in the terms and conditions governing the account agreement. (staff i. , 2017)

• Saving Deposits

Saving deposits means mainly for business people and middle class people to help them to deposits their small savings. Generally it can be opened without any introduction. Money can be deposited at any time but the maximum cannot go beyond a certain limit. There is a limitation on the amount that can be withdrawn at a particular day or during a week. If customer willing

This is very important them to identify our identity and account’s security. Fill the relevant application, then we will end up with a saving account.

Advantages and Disadvantages of Savings Accounts

Advantages Disadvantages

i. Saving accounts are one of the most liquid investment outside of demand accounts and cash. i. Saving accounts always paying lower interest compare to the fixed deposits and treasure bills. ii. At the same time saving accounts facilitate saving, Account can be open jointly. iii. ATM cum Debt Cards for around the clock withdrawals. iv. Internet Banking and SMS banking facility.

v. The bank will offer Instant loan up to 90% of your account balance. vi. Deposits can be made at any Branches Island vide. vii. 24-hour call center

You do not need to be a Bank account holder to open a Certificate of Deposit Account and what’s more, you can earn interest at the time of the investment. Certificate of Deposit Accounts are offered for different time durations. There are 06 months, 12, months, 24 months, 36 months and 60 months for your convenience. (staff, 2017)

The process of certificate of deposit is inventor should have his NIC. Then take an application of certificate of deposit fill it and hand over to the bank officer. So at the end this proceed he must invest his first instalment payment.

Advantages and Disadvantages of Certificate deposit

Advantages Disadvantages

i. Investor can make a fixed deposit at the maturity. i. This has long term instalment payment periods than other fixed deposits. ii. Investor can forecast his future earnings at the end of time period. ii. At the maturity time money value is less due to the inflation. iii. Easy fixed deposit because it has a same instalment payment during the period of time. iii. If the investor late at one time to pay the instalment his interest rate will reduce by