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Deposits Terminology


  • Average Daily Balances- The sum of the daily balances held in an account during a particular month, divided by the total number of days in that month, is known as average daily balance of that month.
  • Call Deposits- These are the deposits received by a bank from other fellow banks and are payable on demand.
  • Call Money- Banks can borrow funds and park their excess fund in the open market (Call money market), where demand of funds is met by financial institutions, just like in share market.
  • Certificate of Deposit- A term deposit certificate issued by a bank duly signed by its office to the depositor in printed format as a proof of deposit, stating the amount of deposit, name of depositor, period and maturity date, face value of the deposit, frequency and rate of interest payable and maturity value of the deposit.
  • Core Deposits- Deposits typically made by regular customers of the bank.
  • Current Accounts- These are the operative demand deposit accounts and can be opened by an individual, firms,corporate, clubs and associations etc.
  • Dormant Deposits- When account holders do not operate the account for more than 24 months, the accounts will be tagged as dormant deposit by the bank.
  • Folio- A complete page of a ledger in a computer system which contains usually 40 entries is termed as one folio.
  • Pass Book- It is a booklet issued by a bank reflecting the transactions in a Savings Bank account of the depositor, for his/her knowledge.
  • Pay Slip- This is a printed slip available in banks which is being used for depositing cheques and cash in customer account.
  • Recurring (Cummulative) Deposits- Under these deposits, a customer is making deposits vide fixed monthly installments, for a predetermined period.
  • Renewal of Term Deposits- The overdue or matured or unclaimed deposits can be renewed as per the request of the depositor in writing.

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