BANKING AFFAIRS

Detailed explanation-1: -Demand deposits are repayable on demand by the customers. Current account deposits, Savings bank deposits and Call deposits are the examples of demand deposits. These deposits are repayable on demand by the customers. The amount deposited on these accounts to be released upon the request of customer without any delay.

Detailed explanation-2: -In Fixed Deposit, an amount is deposited for a fixed period of time. A fixed deposit provides interest on the deposited amount. Whereas, in Recurring Deposits, the customer deposits fixed amounts in small intervals for a long period. The main purpose of a RD is to develop the habit of saving on a regular basis.

Detailed explanation-3: -Recurring account is an example of demand deposit. 3. Funds held under Time deposit are available to the investor at predetermined time.

Detailed explanation-4: -Banks offer recurring deposits (RDs) and fixed deposits (FDs) as ways to encourage saving. In an FD, the deposited amount is locked in for a set period of time, while in an RD, a set amount must be deposited every month for a set period of time.

Detailed explanation-5: -Deposits which are repayable after six months or more are called Fixed Deposits; interest thereon is calculated on the basis of 365 days in a year or actual months.