Bank Deposit
Any deposit or amount of money by cash or cheque you place in the bank for safekeeping is called bank deposit. The bank deposit can be made in the name of different accounts like savings account, current account etc. in financial institutions like banks.
Types of Bank Deposits
There are different types of bank deposits like fixed deposit, recurring deposit etc. which will insure your money and give you good returns without any hassle. As an account holder in the bank, you have the right to withdraw either complete or partial funds from your bank deposit based on the terms and conditions as agreed upon with the bank. Bank Deposits can be made by walking into the bank directly or by wire transfer.
Benefits of Bank Deposit
Bank Deposits are vital in your everyday life to inculcate the habit of saving and securing money for future purposes. Setting aside a small amount of money as bank deposit in your account will only double your savings thereby leveraging your financial strength.
If you make the deposit for a prolonged period, you are likely to earn a higher rate of interest from the bank, thereby gaining more than what you invested.
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A very basic practise by almost all of us to deposit some amount of our earnings in banks as savings. Banks not only keep our money but also valuables like property papers, deeds and jewellery. Keeping them in the safe custody of banks relieves us from the insecurity. It also incalcutes a healthy habbit of savings.