accounts project by imbesat shaikh

8/3/2019 Accounts Project by Imbesat Shaikh

1/16


2/16

BYIMBESAT SHAIKHFYBMS ROLL NO 15


3/16

There are a variety of bank accounts

available and some terminology to get

used to.

This section explains the most

common areas of banks and buildingsocieties.


4/16

Banks have two basic types of accounts:

current accounts

savings accounts.Each bank may have its own

names for types of accounts

within these categories butthe basic principles remainthe same.


5/16

The other two widely used bank accounts are

Fixed account

Recurring accountThese two accounts are

mainly like an investment

which gives you the intereston your amount after theprescribed period


6/16

Current accounts are

used for day-to-day

transactions withmoney coming in,

such as wages, and

money going out,

such as cashwithdrawals, bill

payments, chequesetc.


7/16

Most current accounts offer:Most current accounts offer: a cheque book a cheque book

a debit card a debit card a a cashpointcashpoint cardcard statements statements standing orders (SO) standing orders (SO)

direct debits (DD) direct debits (DD) interest interest overdraft overdraft loans. loans.


8/16

Savings accounts, also known as deposit accounts, areintended for money to be paid in but not oftenwithdrawn.

Some allow instant access to your money but othersrequire that you give the bank notice before makinga withdrawal or incur a penalty.

They dont offer the same access facilities as current

accounts such as cheque books and cashpoint cards. They usually offer higher rates of interest than

current accounts but these too can vary so it isworth shopping around.


9/16

Individual savings accounts or ISAs are a

government scheme to encourage more

people to save or invest their money withoutpaying any tax on the interest earned.

With an ordinary bank or building societyaccount you pay tax on the interest you earn.

There is a limit to how much you can invest inan ISA each year.


10/16

A Fixed Deposit involves locking a particular

amount of money for a certain time period,

say Rs 20000 for 1 year, at a much higher rateof interest than being given on amount in a

savings account.Since interest accrued on a FD is much much

higher than that on a savings account, itswise to keep money parked in these

instruments.


11/16

However one must be sure to balance their

needs well so that they do not have to break

an FD before maturity to meet their dailyrequirements. It means that if a FD is broken

before its maturity, a penalty is applied, andhence the returns come out to be much lower

comparatively. So make sure your needs arewell taken care of, before you park the money

in fixed deposits.


12/16

The main objective of recurring

deposit account is to develop regular

savings habit among the public. In India, minimum amount that can be

deposited is Rs.10 at regular intervals.

The period of deposit is minimum

six months and maximum ten years

The rate of interest is higher.


13/16

Recurring deposit encourages

regular savings habit among the people.

Recurring deposit account holder can geta loan facility.

The bank can utilise such funds for lending tobusinessmen.

The bank may also invest such funds inprofitable areas.


14/16

When choosing a bank account, you may find it

useful to consider: how much interest is paid when your account is in credit.

how much is the interest free overdraft limit. charges for agreed overdrafts and loans these vary. charges for unauthorised overdrafts. These are overdrafts

where you have not received permission from your bank inadvance and the charges are much higher.

the qualifying period after graduation (to stay in the sameaccount, which will probably have better rates than otheraccounts).


15/16

the location of cashpoints and branches telephone banking service

online banking service can you use other banks cashpoints,do they charge?

Saturday or late night opening

where can you make cash andcheque deposits personal banking advisers standing orders and direct debits


16/16

If at any time you notice an item on your

statement which seems incorrect you should

tell your bank, building society or creditcompany immediately.

It could be an error or it could be an incidenceof fraud if someone has used your card

details.Be vigilant and report anything unusual.

accounts project by imbesat shaikh

Documents