Skip to main content

What are the three types of Bank account with Definition?

types of Bank account

The bank plays an important role in the business organization and individual ones. There are mainly three types of the bank account. They are as follows:

1. Saving Account

Saving bank account is useful in saving a generation, especially for individuals and households It carries a moderate rate of interest on deposit interest is allowed on the lowest credit balance kept in a particular Period. It is not useful for a businessman. For opening the deposit for saving account is provides with a passbook. At the time of withdrawn of money, the depositor is required to present his passbook together with withdrawn form. Nowadays, cheque facility is allowed if a certain minimum balance is maintained by the depositor. It has limited withdrawal facilities.

2. Fixed Deposit Account

In this account, Money is deposited only once and can be withdrawn only after the expiry of the agreed maturity period. The rate of interest is the highest in such account. The fixed deposit is not suitable for a business entity. It is suitable for those who are willing to have a lump sum among with sufficient expect interest after the ceratin maturity period.

3. Current Account

For ordinary Transaction purposes, businessman maintains current accounts with their bankers. They mostly keep money on these accounts and draw cheques in favor of their creditors whenever they're like. Current account in a smoother way than does Transactions through cash. Normally, current account deposits do not earn any interest. On the other hand, If the balance falls below a certain limit, a normal charge is made which a certain limit, a nominal charge is made which is called by the bank charges.

More: WhatHowANS
Image blog: PictureFare
Labels:

Comments

Post a Comment

Popular posts from this blog

What is Kite Flying? - Definition

Kite-Flying is a popular game. It is played in the autumn season. This season is fit for kite-flying, for it is neither much cold nor much hot. The harvesting season is over, and people have plenty of time at their disposal. Boys are very fond of kite-flying. Even grow-up men take part in it. The kite-flying season lasts two months. The kite is made of a square piece of paper. The paper is white or colored. there are two sticks pasted on this paper. One stick is straight and the other is curved. The straight stick is placed diagonally. The curved stick is placed nearly at the top of the straight stick, its ends touching two corners of the paper. The straight stick is tied with a piece of thread at two points just below its ends. This thread is joined to a long thread wound on a reel. The kite-flier holds the reel with his hands. He needs a helper for flying the kite. The helper catches the kite with his hand and goes to a long distance. He throws the kite up, and the flier pulls...
Post a Comment
Read more

What is LAN and WAN Networks? - Definition

LAN and WAN are the two types of computer network on the basis of geographical area coverage. Both are different from each other. Here is the definition of both networks. LAN (Local Area Network) The interconnection within room or building is known as LAN (Local Area Network). The data transmission rate is faster than WAN. Most of the LAN is built with relatively cheap hard drives like Ethernet cables, network adapters, and hubs. LAN has higher security to resources of the network. It is more easy to manage and operate. It can operate at a speed of 100mbps. There is lack of backup compares to WAN in LAN. It is only limited for short distance. The network structures of LAN is in Homogenous form. WAN (Wide Area Networking) The interconnection within a country or between neighbor countries and within a continent is known as WAN (Wide Area Networking). The data transmission rate is slower than the LAN. WAN use much expensive software than LAN. It helps to send data/information...
Post a Comment
Read more

What do you mean by Bounded media and Unbounded media? (Definition)

Bounded and unbounded media are the transmission media which is used to transfer data from one destination to another through its means. Bounded Media The transmission media which uses to transmit the signal/data/information from one to another is known as bounded media. The data transmit rate is faster than the unbounded media. Bounded media is used to transmit data/information in short distance. It uses twisted pair cable, coaxial cable, and fiber optic cable as transmission media. All the computer and devices are physically connected in bounded media. Unbounded media The transmission media which uses wireless to transmit data/information/signal from one to another is known as unbounded media. The data transmit rate is slower than the bounded media. It is used for transmitting the data/signal/information for long-distance. It uses radio wave/microwave/communication satellite as transmission media. All the computer and devices aren't physically connected. Bounded m...
2 comments
Read more