an account in which individuals or firms deposits cash that are not presently needed. The period for withdrawal may be specified ranging from six months or one year. This type of account usually carries a higher interest rate and it is sometimes called “Time or Fixed Deposit Account”.
Often, this type of account is called demand deposit. It is an account in which the owner can make withdrawal without any notice. This type of account does not yield any interest rather the depositor is charged some commission by the bank. Note that payments are made by the use of pay-in-slip (TELLER), while withdrawals are by cheque.
This type of account is usually runned by low-income earners and students alike. The interest rate is usually small.