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BankingAwarenessLectureEnglish Module2 PDF
BankingAwarenessLectureEnglish Module2 PDF
TYPES OF ACCOUNTS
1. SAVINGS ACCOUNTS
2. CURRENT ACCOUNTS
3. FIXED DEPOSIT ACCOUNTS
4. RECURRING DEPOSIT ACCOUNTS
5. BULK DEPOSIT ACCOUNTS
Eligible for Resident Indians above 18 years age (for 10 to 18 years age group account is
allowed with some restrictions and for persons below 10 years, minor account with guardian
is to be opened)
Can be opened by individuals (single / jointly) and HUF’S
Interest rates vary from 4% to 6% (Most of the banks offer 4% at present)
They are classified as Demand Deposits as the customer can withdraw anytime. Only minor
portion is classified as time deposit
Banks impose restrictions on the number of transactions in a specified period as well as
maximum amount that can be withdrawn (but not enforced strictly, because of stiff
competition from other banks)
1. SAVINGS ACCOUNTS
COST OF FUNDS
FD
SD RD BD
CD
… Contd Approx. interest
rates in %
Salient features 0 1 2 3 4 5 6 7 8 9 10 11 12
No tax is payable on interest earned on saving bank account up to Rs.10,000 per year i.e.
interest income up to Rs.10,000/- is exempted from income tax.
From 25th October 2011, RBI has deregulated savings bank interest rates and now the banks
are free to decide the same within certain conditions imposed by RBI.
From 1st April 2010, the interest is calculated on daily basis taking into account minimum
balance available on every day.
Some banks have got facility to convert saving deposits into money multiplier schemes / multi
option deposits etc., to earn more interest.
COST OF FUNDS
FD
2. CURRENT ACCOUNT CD SD RD BD
Approx. interest
rates in %
Salient features 0 1 2 3 4 5 6 7 8 9 10 11 12
Approx. interest
… Contd rates in %
Salient features 0 1 2 3 4 5 6 7 8 9 10 11 12
CASA RATIO IN %
CASA RATIO
CASA RATIO IS THE RATIO
OF THE DEPOSITS IN THE
FORM OF CURRENT AND
SAVINGS ACCOUNTS TO THE
TOTAL DEPOSITS
(NORMALLY EXPRESSED IN
PERCENTAGE)
Tentative Figures