Money Kept or deposited in the bank which the depositor can withdraw under prescribed conditions is called a deposit. Receiving deposits is the first primary function of Commercial Banks. Bank receive deposits from the public and pay interest/profit. Different kinds of deposits are given below:
1. Current Account:
It is the most popular form of bank accounts. Majority of customers particularly business class, government departments, public bodies keep their money in current accounts. In this account money can be deposited and withdrawn from bank at any time during banking hours. Generally, interest/profit is not paid on this account and bank deducts its service charges from the account. Now a day, some banks are offering interest/profit on a particular amount kept in these accounts. Current account is opened in all commercial banks. It is also called running and active account.
2. Saving Account:
Person with little savings (low income or salaried persons), deposit their money in the saving account. Saving deposits can be withdrawn on demand up to a certain limit. Banks also pay interest on these accounts.
3. Fixed Deposit Account:
In the fixed deposit account, money is deposited for a fixed period of time. High rate of interest/profit is paid on this deposit. The period is fixed at the time of opening a bank account. Within this period, the account holders are not entitled to withdraw money from the accounts.
4. Foreign Currency Account:
Foreign currency account is opened in foreign currency instead of local currency. In Pakistan, this account can only be opened in nominated branches of commercial banks. Foreign currency account can be opened in form of saving, fixed and current accounts.