A bank balance consists of money that is kept in a bank for safekeeping. These deposits are made in deposit accounts like savings accounts, checking accounts, and market accounts. The account holder has the proper to withdraw the deposited funds consistent with the terms of the account contract.
The deposit itself is an obligation that is the bank's obligation to depositors. Bank balances relate to these liabilities and not to actual deposits. When an individual opens a checking account and makes a cash deposit, they transfer legal ownership of the cash and it becomes the asset of the bank. The account in turn is an obligation to the bank.
1. Current account (deposit on request)
A checking account, also called a daily cash account, is a basic checking account. Users can withdraw the deposited money at the request of the account holder. By using a bank card, check, or over-the-counter payment slip, the account holder can easily withdraw funds. Banks also charge some monthly checking account fee, but it may get waived if the holder meets all the other requirements of the bank, like setting up a direct deposit or several monthly transfers to a savings account
2. Saving account
Savings accounts give account holders interest on their deposits. However, in some cases, account holders may receive a monthly fee if they do not have a certain balance or a certain deposit amount. Using Best forex trading app for depositing money is becoming common now a days. Although savings accounts, as checking accounts, are not linked to checks or cards, their funds are relatively easily accessible to the account holder.
In contrast, market accounts offer slightly higher interest rates than savings accounts, but account holders are more limited within the number of checks or transfers they will make from money market accounts.
In contrast, market accounts offer slightly higher interest rates than savings accounts, but account holders are more limited within the number of checks or transfers they will make from money market accounts.
3. Call deposit account
Financial institutions call these accounts interest-bearing checking accounts, check-in plus, or priority accounts. These accounts combine the characteristics of checking and savings accounts and give consumers easy access to their money, but also interest on their deposits.
4. Certificate for deposit/deposit accounts
Unlike savings accounts, time deposit accounts are an investment vehicle for consumers. Also known as certificates of deposit (CD), deposit accounts tend to offer higher returns than traditional savings accounts, but the money must remain in the account for some time. In other countries, time deposit accounts have alternative names such as fixed-term deposits, fixed-term deposit accounts, and savings bonds.
5. Special considerations
The Federal Deposit Guarantee Corporation (FDIC) offers deposit insurance that guarantees member bank deposits of at least $250,000 per deposit. Member banks are required to put up a publicly visible sign stating that "Deposits are backed by the full trust and creditworthiness of the United States government.