Deposit Operations

DEPOSIT OPERATIONS

ARMELA HASMUCA

Bank Deposit AccountMoney placed to a bank: Safe keeping Earn return(by interest) This cash becomes an asset of the

bank, The account becomes a liability.

Objectives

Classify bank deposits account

Discuss the steps to be taken for opening a saving bank account

Describe the procedure of operating a saving bank account

Types Bank Deposit Accounts

Savings Bank Account

Current Deposit Account

Fixed Deposit Account

Recurring Deposit Account

Saving Account A deposit account held at a bank that

providesa. Principal securityb. A modest interest rate

Savings account funds are considered one of the most liquid investments outside of demand accounts and cash.

Savings accounts are generally for money that you don't intend to use for daily expenses.

Current (demand) Deposit AccountAn account from which deposited funds

can be withdrawn at any time without any notice to the depository institution.

Bank does not pay any interest Rather the accountholder pays

certain amount each year as operational charge

Bank also allow overdraft facility

Fixed (term) deposit AccountThis type of account allows to deposit an amount for a

specific period. May range from 30 days to 3 years On request the depositor can Ancash the amount

before its maturity, but the interest earn until that period now it is lost.

At fixed deposit interest is at higher rate. Interest can be withdrawn or renewed for a further

period Bank grant loan on the security of fixed deposit

receipt

Recurring Deposit Account This type of account is suitable for those who can save

regularly Expect to earn a fair return on the deposits over a

period of time. Person has to deposit a fix amount once a month for e

period of time Interest is earned at the maturity Interest here is higher than demand deposit and lower

than fix deposit. The account can be open by 1 person or jointly with

another or by the guardian in the name of a minor

Recurring deposit can be different depending on the purpose

Recurring Deposits

Home Safe Account

Cumulative-cum-sickness

deposit Account

Home construction

Deposit Scheme

•Bank provides a safe or box for regular saving with a nominal rate of interest•The depositor can not be open the safe box, and amount is credited to the depositor’s account

Home Safe

Account•Serve to meet large expenses in case there is a sudden illness or other unforeseen expenses•The accumulated deposits over time along with interest can be used for payment of medical expenses, hospital charges, etc

Cumulative-cum-sickness

Deposit Account

•Money can be deposited regularly either for the purchase or construction of a flat or house in future. •The rate of interest offered on the deposit in this case is relatively higher than in other recurring deposit accounts

Home Construction

Deposit Scheme

How to open a Savings Bank AccountTo open a savings bank account in a

commercial bank, you have to first decide:

a) What amount of money you would like to deposit initially

b) What is the minimum amount at least to be deposited when opening it.

Than you should taken the following steps.

Filling up the Form (contins..) Name of the person (applicant) His/her occupation Residential Address Specimen signature of the applicant Data entering in the system Completing a cashing term for depositing the

money Giving the customer the printed and signed

version of contract

Procedure of OperatingDeposit in the account By cash By cheque By transact from another existing account beforeWithdrawal from deposit account Withdrawal form Cheque ATM card

Terms and conditions for deposit account at BKT generally The minimum amount for demand account deposit to

be opened is 1500 lek and its equivalent in EUR USD for individuals 5000 lek and its equivalent in EUR USD for SHPK Minimum amount for fix, saving deposits is 30.000 lek

or 300 eur, usd. Maturity varies from 1-month to 3-years. Interests rates are different and depending from

maturity and amount of money that will be invested. The person must be above 18 years otherwise must be

represented by a guardian.

What is the role of deposits account at bank Deposits are used to lend money to

secure borrower. From lending them with a higher

interest rate bank creates money Interest rate for lending money is

relatively very high compare with interest rate given for depositors

Job DescriptionThe complete job description covers the following topics: Essential duties and responsibilities Performance standards Qualification requirements Education and experience Language skills Mathematical skills Reasoning ability Other skills and abilities Physical demands Work environment

Thank you for your attention !