Banking Awareness For IBPS PO /MT 2013 exam

Types of Bank Account :

Current Account: A current account is the account  where we can have unlimited number of transactions on our account. Also we do not receive any interest on your deposit money.Moreover this account is for businesses and organisations. Overdraft is allowed in it. Because money is available on demand these accounts are also referred to as demand accounts or demand deposit accounts. Refer - http://en.wikipedia.org/wiki/Deposit_account

Saving Account: A savings a/c is for people who want to keep the money in the bank. This a/c pays a very small rate of interest (4%-6%) to the a/c holder. (It depends on the bank. If the bank is a pvt one, they charge you money if u don't maintain a min. balance, besides the annual maintenance charges) 

 An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation the account is said to be "overdrawn". Refer -  http://en.wikipedia.org/wiki/Overdraft

Overdraft means, once in a while they are allowed more money than what they have in the account, as long as they repay it with interest. 

Term Deposit:A money deposit at a banking institution that cannot be withdrawn for a preset fixed 'term' or period of time. When the term is over it can be withdrawn or it can be rolled over for another term. Generally speaking, the longer the term the better the yield on the money.