Fundamentals of Banking Operations

2.2. Types of Bank Deposits

Deposits form the primary liability of a bank and the main source of funds for lending.

1. Demand Deposits

• Withdrawable on demand

• No fixed maturity

• Examples: Current accounts

2. Savings Deposits

• Earn moderate interest

• Limited withdrawals

• Encourage personal savings

3. Fixed/Time Deposits

• Locked for a specified period

• Higher interest rate

• Early withdrawal penalties

4. Call Deposits

• Withdrawable with short notice

• Often used by corporate clients