The savings account, the current account or some other type of the bank account which allows the ability to deposit the money and then to withdraw the money is referred to as deposit account. The account holder is the one can deposit and then withdraw the money. The transactions will be recorded in books named bank books and then the resulting balance will be then recorded in the liability for the bank purposes. This will eventually represent the amount that is owed to the customer by the bank. There are some banks which charge a considerable amount as the bank charges for this service where as some other banks will pay the interest to the customers for the funds that are deposited.
Types of accounts:
There are some major types of accounts namely checking accounts, savings accounts, money market account and the time deposit account.
The deposit account which is put in a bank or any other financial institution in order to secure the fund safely and to provide frequent access to the funds in times of demand through various channels is referred to as checking account. Since one can get the money quickly at the time of demand, this type of deposit account is also referred to as demand deposit accounts or just demand accounts.
On the other hand, the accounts which are maintained by some retail banks which will be paying a certain amount of interest which cannot be utilized as money directly but can only be utilized as cheque is called saving accounts. Though these savings accounts are not as convenient as the checking accounts, the customer will be able to keep liquid assets while having the ability to earn a monetary benefit in the saving accounts.
Money Market Accounts:
The money market accounts are the deposit accounts which has got high interest rates. One big advantage of this account is that there is only short period of notice is required for the withdrawals of money from these accounts.
The final type of deposit is the time deposit which is a money deposit in the banking institution that can never be withdrawn from the bank at the set period of time. In this type of account the longer the term of the deposit the better the returns of the money would be.
Though the terms and conditions of the provider and the account are the main thing that decides the restrictions ant the account, the account holder has the ability to get the money repaid in the times of demand.