Question

What is a savings deposit?

What is Saving Deposit account.

Explain savings account.

Answer 1

1. Any person can open a savings deposit account with the minimum specified amount. In this account, small savings are deposited by middle and low-income people.
2. Deposits can be made any number of times in a week. But there is a restriction on the number of withdrawals in a week.
3. Interest is allowed on the minimum balance standing to the credit during a month.
4. A passbook and a chequebook are issued to the account holder.
5. The main purpose of a savings deposit account is to develop the habit of saving among the public.
6. A savings bank account can be opened by two persons in their joint names. No overdraft facility is allowed on a savings account.

Answer 2

A savings account is opened to accumulate savings. Any individual or organisation can open a savings account. A minimum balance has to be maintained. Cheque book and pass book are issued to the account holder. No overdraft is allowed on a savings account.