Page 87 - DCOM208_BANKING_THEORY_AND_PRACTICE

Banking Theory and Practice Mahesh Kumar Sarva, Lovely Professional University

Notes Unit 6: Type of Deposit Account

CONTENTS
Objectives
Introduction

6.1 Process of Opening Bank Accounts
6.2 Welcome Kit
6.2.1 Pay-in-Slip

6.2.2 Cheque Book
6.2.3 Pass Book
6.2.4 ATM cum Debit Card
6.2.5 Credit Card
6.3 Advantages of Bank Account

6.4 No Frills Account
6.5 Summary
6.6 Keywords

6.7 Review Questions
6.8 Further Readings

Objectives

After studying this unit, you will be able to:

Distinguish between the different types of deposit accounts
Explain the procedure for opening bank accounts
Define pay in slip
Define cheque book, pass book, ATM card and credit card

Discuss the advantages of bank account
Explain no frill account
Introduction

In the previous unit, you have studied about the banker customer relationship, KYC norms,
rights of the bankers and mandate and power of attorney. In this unit, you are going to learn
about the different types of accounts, cheque book, pass book, ATM and credit card and no frill
account.

A deposit account is a type of bank account that allows money to be deposited and withdrawn by
the account holder. Deposit accounts are divided into two categories: (a) demand deposit; and
(b) time deposit. Demand deposit is further classified into two – (i) savings account; and
(ii) current account. Similarly, the two categories of time deposit are – (i) fixed deposit; and
(ii) recurrent deposit.

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