Basic Documents and

Transactions related to Bank

Deposits
 Types of Bank Accounts
• A bank account represents funds entrusted by
a depositor to a bank for safekeeping.
1. Savings account
2. Current or Checking account
3. Time deposit
• Savings account – is a bank account that earns
modest interest rate. Normally evidenced by a
“passbook” – shows the depositor’s deposits and
withdrawals, the amount of interest earned by
the deposit, and the balance of the account. (
ATM- automatic teller machine).
DEBIT CARD - using your own funds.
CREDIT CARD – borrowing the bank’s
funds.
Dormant or Inactive account – 2 years for
saving account or 1 year for checking account(no
deposits or withdrawals), bank charges called
“Dormancy fee”.
Current or Checking account – is a bank account
wherein the depositor can write a checks.
Check is an instrument that orders a
bank(drawee) to pay the person named on the
check or the bearer thereof (payee) a definite
amount of money from the drawer’s bank
account.
It is either Basic checking account - non
interest bearing, or Interest-bearing checking
account – interest bearing just like a savings
account.
• Time deposit (or Certificate of deposit or term
deposit) – refers to an interest-bearing fund
maintained at a bank for a fixed period of time
(e.g. 30 days, 60 days, 90 days, etc.), It earns
higher interest rate, dominated in fixed
amounts, can not be withdrawn until its
maturity date.
• Drawer – the one whose signature appears on
the check. The drawer is the one instructing
the drawee to pay the payee the amount
stated on the check from the drawer’s bank
account.
• Payee – the one who is named on the check or
the bearer thereof and is entitled to payment
from the drawee.
• Drawee – the bank in which the drawer’s bank
account is maintained.
• DATE – normally a check is dated as at the
date it was written(assume that the date
today is Jan. 1, 2011). However, there may be
a cases where a check is dated at an earlier or
later date.
• ANTEDATED check – a check dated at an earlier date
(e.g. Nov. 01 2010).
• POSTDATE check – a check dated at a later date (Feb. 1,
2011).

• STALE CHECK – a check that has not been encashed for

a period months or longer from its date is called a
“stale check” (e.g. Apr. 1, 2010).