SERVICES OF COMMERCIAL BANKS

1. Accepting deposits

2. Providing a convenient means of making payments

3. Lending to customers

4. Other services

 

 

 

 

1. ACCEPTING DEPOSITS

Savings Account

-          These are known as time deposits or deposit accounts.

-          Seven days notice of withdrawal is required.

-          Interest is paid on these accounts.

-          There are no bank charges for operating such an account.

-          It is suitable for investors with small savings.

Fixed Deposit:

-          Large amounts of money can be deposited for a fixed period.

-          Higher rates of interest are paid on this account.

-          There are no bank charges for this account.

-          A certificate of deposit is given to the accountholder.

-          Money deposited can be withdrawn only when the specified date expires.

 

Current / cheque accounts

-          Money can be deposited and withdrawn at any time.

-          Overdrafts, standing orders, direct debits and credit transfers are allowed on these accounts.

-          No interest is paid on these accounts.

-          There are bank charges for operating such accounts.

-          It is suitable for businessmen, who need to deposit and withdraw money at any time.