Different Types Of Bank Account | Important Questions | Banking | 1st Year / Class 11 – Commerce | AHSEC (Assam)

Different Types Of Bank Account | Important Questions | Banking | 1st Year / Class 11 – Commerce | AHSEC (Assam)

Q. Write the full form of ATM. (2015/2017/2018) (1mark)

-> Automatic Teller Machine.

Q. Give the meaning of credit card. (2015/2018) (1mark)

-> A credit card is a thin rectangular plastic card issued by financial institutions, which enables the customers to purchase goods and services on credit and make payment later on. It is a popular instrument of electronic payments. The first credit card was issued by Diner’s Club in the USA in 1950. The name of the card was Diner’s Card.

Q. State the meaning of e-banking. (2015/2016) (2marks)

-> E-banking banking has many names like e-banking, virtual banking, online banking, or internet banking. It is simply the use of electronic and telecommunications networks for delivering various banking products and services. Through e-banking, a customer can access his account and conduct many transactions using his computer or mobile phone. There are different types of e-banking:-

a) Any time anywhere banking, b) Home banking, c) Tele-banking, d) Mobile banking, e) Card based banking and f) Internet banking.

Q. State the meaning of Insurance of bank deposit. (2016/2019) (3marks)

-> The term insurance of bank deposit means protecting the interest of depositors from the risk of loss arising from bank failures. For the purpose of insurance of bank deposits, DIC was set up in India in 1962. The DIC was merged with Credit Guarantee Corporation of India. In India the scheme of deposit insurance covers deposits to the extent of Rs. 1 lakh for each deposit account.

Q. Who is a bank customer? (2015/2017/2018) (2marks)

-> A person or an institution or corporate body that opens an account in a Bank and undertakes banking services with the Banker is known as Customer of a Bank or Bank’s customer.

Q. What are the different types of accounts? Explain any two of them. (2015/2018) (5marks)

-> A banker provides various types of accounts to the customer to be opened in a bank. These accounts are:- 

Demand Deposit Accounts- Demand deposits are those deposits which are repayable on demand and the depositor has the right to withdraw money from such accounts by means of cheques. Such deposits accounts include:

a) Savings Deposits Account- Savings Deposits Account is type of deposit account which is opened by the customer for depositing their savings for their future benefits.

The features of Savings Deposits accounts are:-

  1. Withdrawal is made through cheques.
  2. There are certain restrictions on withdrawal of money.
  3. Small amount of interest is given.
  4. This account is generally opened by small savers.
  5. No overdraft facility is given in this type of account.

b) Current Deposit Account- A current account is a running account which may be operated upon any number of times during a working day. Current account is particularly suitable for those customers of the bank whose banking transactions happen to be numerous on a working day e.g. businessmen, firms, joint stock companies, government departments etc. 

The features of Current deposit account are:

  1. Withdrawal is made through cheques.
  2. There are no restrictions on withdrawal.
  3. No interest is given on this type of account.
  4. This account is generally opened by businessmen.
  5. Overdraft facility is given to current account holders.

Time Deposit Accounts- The time deposits accounts are those deposit accounts where the amount of deposit is repayable only after the expiry of the period. The depositors cannot withdraw the deposits by means of cheque. These accounts are of two types:

a) Fixed deposit account and b) Recurring deposits account.

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