Skip to main content

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.

Comments

Post a Comment

Popular posts from this blog

Reasoning: Alphabet Test and Miscellaneous Series

Position of Alphabets A-   A- One brand B-   Bi- ttu D-    For -D F-   F- ix G-  G- iven H-   H- eight K-   K- elvin M-   M- 13  hero N-    14 th November P-    Pre- sixteen T-    T- 20 E-5 J-10 O-15 T-20 Y-25 C-3 F-6 I-9 L-12 O-15 R-18 U-21 X-24 G-7 L-7+5=12 Q-12+5=17 V-17+5=22 I-9 S-19 C-3 M-13 W-23
Post a Comment
Read more

Simple Interest

Simple interest formula is one of the methods of calculating the interest on a certain amount. First, it is important to recall the concept of interest and ways to calculate it. When you borrow money from a bank, there is an extra amount to be along with the amount you borrowed. That extra money that you pay is called interest. Some money lenders and financial institutions also charge this interest for the money borrowed. There are two types of interest levied upon: Simple Interest, and Compound Interest It should be noted that the simple interest is paid at the end of a specific time period and is always a fixed amount that the borrower has to pay. The   simple interest   is calculated using a formula which is described below along with an example question. Formula for Simple Interest Simple interest is calculated by multiplying the interest rate by the principal amount and the time period which is generally in years. The S.I. formula is given as: Simple Interest (SI) = P × T...
Post a Comment
Read more

Basic tips and tricks to solve coding-decoding

The approach to solve the questions of this section? Observe alphabets or numbers given in the code keenly. Find the sequence it follows whether it is ascending or descending. Detect the rule in which the alphabets/numbers/words follow. Fill the appropriate letter/number/word in the blank given. Some Basics which we need to learn before solving the questions of this topic are: Letter position  (A=1, B=2, C=3, D=4 …… Y=25, Z=26) Opposite position of letters  (A=26, B=25 …… Z=1) Opposite of each letter  (A is opposite to Z and B is opposite to Y and C is opposite to X …… and so on) Various types on which Coding and Decoding are classified are (as per Bank Exams): Letter Coding Substitution Mixed Letter Coding Mixed Number Coding LETTER CODING: In this type the real alphabets in a word are replaced by certain other alphabets according to a specific rule to form its code. The candidate is required to detect the common rule and answer the questions acc...
Post a Comment
Read more