Functions of Banks
The most important function of any bank are two. they are
a) Accepting Deposits
b) Granting Loans & Advances
Deposits are of three types mainly
1. Saving Deposit
2. Current Deposit
3. Fixed Deposit
1. Saving deposit is one of the account type that helps the consumers to open an account in bank for a longer period unlike current account. under this account banks give facility to withdraw for number of times with certain limit.
2. This account (Cuurent deposit account) is mainly opened for the purpose of business use where bank provides overdraft facility with higher interest rate charges. The main feature of this account is "short term use".
3. Under Fixed account system, the money deposited into account can only be withdraw only after maturity tenure agreed between the parties (Account holder & Bank).
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