Banking — Flashcards

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A bank is an institution that collects money from the public as deposits and lends the same to borrowers. It also provides safe keeping, lending, and transfer of money.

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Banking means accepting deposits of money from the public for lending or investment, with repayment on demand or otherwise, and withdrawal by cheque, draft, order, or otherwise.

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Banks accept money as deposits and lend money at a higher rate of interest. The difference between the rate paid on deposits and the rate charged on loans is the bank’s profit, so banks deal in money …

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Accepting deposits is the main function of a commercial bank. Banks collect public savings and use them for loans and investments.

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The main types of bank deposits are fixed deposits, savings deposits, current deposits, and recurring deposits.

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A fixed deposit account is an account in which a lump sum is deposited for a fixed period. The money is repaid on maturity, and the interest rate is usually higher than on other deposits. The time per…

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People choose fixed deposits to earn a higher rate of interest on money that can be kept for a fixed period. It is useful when immediate withdrawal is not needed.

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A savings deposit account is meant for small savings. It helps people save money regularly, earn interest, and withdraw money with some restrictions. It can be opened with a small amount and may be op…