Question

Explain the following concepts or give definitions. 

Savings deposits 

Answer 1

A Saving Account caters to the needs of those individuals who wish to save a part of their income and earn interest on the amount saved. Such deposits are payable on demand i.e. such deposits can be withdrawn by the depositor as and when required. However, the banks impose a limit on the withdrawal amount from the saving account. Also these deposits are chequeable deposits i.e. cheques can be issued against such deposits.