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Table 1.1 Deposit classification


Types of deposits   Current Deposits Fixed Deposits Saving Bank deposit  
Investors categories   Corporate deposits Retail deposits
Withdrowal form   Demand deposits Term deposits Certificates of Deposits    
Interst rate form Fixed rate deposits Flow rate deposits Zero rate Deposits
Deposit Currency Deposits in National currency Deposits in Foreign currency


*Source: Table is compiled by the author.

Receiving of deposit is one of the primary functions of a commercial bank. Banks usually accept deposits from those people who can save and cannot profitably use their surpluses. There are three types of deposits like:

Fixed deposit: Fixed deposit refers to a type of deposit which can be drawn on the expiry of a specific period. This type of deposits is paid at a higher rate of interest.


Current deposit: Current deposit refers to a type of deposit which can be drawn at any time and in any amount. Generally current deposits are not paid any rate of interest. However, a very low rate of interest is paid if there is a condition that deposit amount will never fall a certain limit.


Savings Bank deposit: These deposits encourage savings among the people. These deposits carry comparatively higher rate of interest but it is lower than fixed deposits.


Demand deposits: placed with banks on various accounts opened by the client. Taking the contribution of demand and opening a current account, the bank gives the customer (company), a public agency, private person the obligation to pay on demand without prior notice to any amount within the deposit, in cash or in form of non-cash payments. These are the estimated current and fiscal accounts of legal entities and individuals, special accounts that contain trust funds kontokorrentnye, correspondent accounts payable to other banks, as well as funds for the settlement accounts, savings certificates, undated.
Bank account - the core of his relationship with the client, and the growth of the amount of funds in the account is often considered as the main indicator of the enterprise. Among them, for the maintenance of the current (main) activity secrete demand accounts, called by each country in different ways (design, personal, ongoing). Funds on current accounts, both legal and natural persons are now the most profitable type of resource. Funds may be made and removed from them as parts, and completely on demand of the depositor.Current accounts are stored temporarily released the funds of enterprises and individuals money in circulation. The initiative to open such an account comes from the clients themselves in connection with the need to make payments, make payments and receive money at their disposal. In foreign literature, these types of accounts are defined as a transaction. Mode of data accounts controlled the bank account agreement and the agreement of the correspondent account.
Current account - this is the only active-passive account, it is provided in the gap in customer payment transactions as its current financial needs exceed the available resources of his own. Loans are granted within the line of credit. Its size is set for the year based on the borrower's balance sheet data on the deployment of current assets and its available sources of formation. All payment transactions concentrate on the current account and the borrower's account is closed. Balance on current account can be a debit or credit. Credit balance provides a basis for payment of interest in favor of the client.The fee for this is almost the same size as the balance of interest on demand accounts / 7 /.

Term deposits - the money is credited to the deposit account on a strictly specified period with payment of interest. Bet on them depends on the size and term. In this regard, time deposits are classified according to term: deposits with a term of 1, 3, 6, 9 months and then for years 1, 2, 3 years.
The fact that the owner of the fixed deposit can dispose of it only after a specified period of time, does not exclude the possibility of early receipt of the bank their money.However, in this case, the client goes down the rate of interest on the deposit. The bank is interested in attracting term deposits, as they are stable and allows the bank to have the means investors for a long time. Making money on time deposit is made by special contract - the contract of bank deposit. The bank develops its own form of deposit agreement, which in each separate contribution is a typical character.

The advantage of term deposits to clients is to obtain a high percentage, however the advantage for the bank is the ability to maintain a high liquidity with less operating reserve.

The disadvantage of term deposits for customers is concentrated in low liquidity and the inability to use the funds in the accounts of fixed deposits for payments and current payments, as well as for cash.

Certificate of deposit - is a type of time deposit, a written certificate of the bank on making money, which entitles the investor to receive at the end of the due date of the deposit amount and interest thereon. Certificate of deposit issued only to legal entities. It may be nominal or bearer. The right to receive input on certificates of deposit can be transferred to another person. Certificate of deposit issued by banks under a certain percentage of the contract for a specific period of time or on demand. The interest rate on the certificates is established at the time of their release. For individuals using savings certificates issued by the bank as a fixed term demand deposits.
Savings deposits - depending on the characteristics of their storage is divided into: urgent, urgent additional contributions, winning, money-winning duffel, youth-premium, and conditional on the bearer, current accounts, demand deposits, savings certificates and cards. They are introduced and withdrawn in whole or in part and may be certified by a savings book.

Many deposits can create a bank loan capital, which he then place under favorable conditions in any area of ​​the economy. The difference in the percentage of deposits and interest received from borrowers of capital, there is a fee to the bank, for his work on attracting free funds and the placement of loan capital.
With the transition to a market economy has opened a new stage in the development of banking, which consists in the development of the deposit market. From the efficiency of the deposit market depends not only on the timely receipt of the individual subjects of the market, but also the growth of the state as a whole.
The mechanism of functioning of the deposit market a huge role is played by banks, as practically the main subjects of the deposit market. Accumulation of cash income and savings is the traditional function of banks. Banks accumulate temporarily unused income and savings. Custody of savings in deposits as beneficial to the public, and for the state.The depositors are paid interest income or winnings.
Deposit market - a multidimensional phenomenon, the subject matter of the study of banking. Consider the structure of the deposit market (Table 1.2).


Date: 2015-12-11; view: 1744

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