What Are All the Types of Bank Deposits?

Bank deposits safeguard your money and also increase them by a certain percentage by giving you interest. Any type of savings is much more profitable if kept in a bank, rather than as cash at home. Most popularly people knowingly or unknowingly use two types of bank deposits, namely Demand Deposits and Time Deposits.

Different Kinds of Bank Deposits

There are many types of deposit available to you. Broadly, we can classify them as:

• Demand Deposits.
• Time Deposits.
• CASA Deposits.
• NRO, NRE and FCNR Account Deposits.

Demand Deposits

When the amount deposited by the customer, can be withdrawn anytime, anywhere, without prior information to the bank, it is called demand deposit. A demand deposit is the normal savings or current account that we have in our bank. We deposit money and withdraw through various portals like ATM, cheque, bank drafts and more.

Time Deposits

When the amount deposited by the customer has a fixed tenure and can only be withdrawn at its end tenure date or maturity date, it is called time deposit. The word Time refers to the time limit a deposit holds. Fixed deposits and recurring deposits fall under this category. FD rates are fixed and paid at regular intervals until the maturity date. Other types include a reinvestment deposit, like a Flexi deposit, where interest is paid quarterly or bi-monthly.

Also, Read This: 5 Long Term Investment Options for Your Child

CASA Deposits

Often companies encourage their employees to open a salary account in a particular bank. Business owners are also advised to open a current account for easy management of their finances. All these fall under the category of CASA deposits. Out of all types of deposit, a CASA deposit determines the financial position of a bank in the market.

NRO, NRE and FCNR Account Deposits

These are for all Indians living outside India. Through these types of deposits, a person can accumulate their inheritance, sale of property in India and other income sources that are available to them from their native land. FCNR is currently available in six different currencies and the interest is paid in the currency of the deposit.