Different Types Of Bank Accounts | Long Question | Banking | 1st Year / Class 11 – Commerce | AHSEC (Assam)

Different Types Of Bank Accounts | Long Question | Banking | 1st Year / Class 11 – Commerce | AHSEC (Assam)

1. 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 a 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.

2. What are the different types of e-banking services? (2016) (5marks)

-> The various E-Banking services of a bank are: Electronic clearing services (ECS), Electronic Payments, Automated Teller Machine (ATM), Credit Card, Debit Card, Smart Card, Virtual Card, and Electronic Fund Transfer (EFT).

3. Explain the different types of accounts. Explain the procedure of opening a savings account. (2016) (8marks)

-> 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 a 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.

The procedures for opening savings account are:-

1. Selection of type of account- The first step is to select the type of account to be opened. An account may have several types such as current, saving fixed account. An account can be opened jointly or singly.

2. Selection of bank and branch- The prospective account holder should now select the bank.

3. Obtaining the account opening form- An account opening form is obtained from the bank. It should be read carefully and filled in with utmost care.

4. Obtaining the reference- One or two references are obtained by the prospective account holder. The people who give references sign the form and give their account no. and name and address.

5. Submission of the form- Now the form should be submitted along with the required documents. These documents vary from account to account.

6. Giving specimen signature- Now, the account holder signs on a card called specimen signature card. These signatures are matched with the cheques of the account holder.

7. Making initial deposit- The applicant is allocated an account and asked to make an initial deposit in his account through a deposit slip.

8. Account is opened- As soon as the initial deposit is made, the account is opened.

9. Receiving of cheque book/term deposit certificate- Finally, a cheque book is issued which beard the applicant’s account no. The money can be withdrawn with the help of these cheques.

4. Discuss the advantages of ‘Internet Banking from Customer’s point of view. (2019) (5marks)

-> Advantages of E-banking or Internet banking:-

1. E-banking helps customers to avail of banking facilities round the clock. E-banking services are available 24 hours a day and 365 days a year.

2. E-banking helps in reducing the operational costs of banking services.

3. The speed of transaction is faster relative to use of ATMs or customary banking.

4. E-banking has made possible on-line purchase and payment of goods and services.

5. E-banking provides hassle free, cheap and fast funds transfer facilities to the customers. It also makes utility payments e.g. payment of electricity bills, telephone bills etc easier.

5. Write the procedure of use of ATM Card. (2019) (5marks)

-> Procedure to use ATM Card:

  1. Step1: First of all go to the ATM of any bank and insert your ATM Card.
  2. Step2: Select your preferred language.
  3. Step3: Enter a four digit pin number.
  4. Step4: Now choose the transaction type: Withdrawal, mini statement, Balance enquiry etc.
  5. Step5: Then select the account type- Current or Savings.
  6. Step6: Collect the cash and count or see balance on the screen or collect mini statements.
  7. Step7: End the session by pressing cancel or cross button.
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