Friday, November 17, 2017

What do you know by demand deposits?

·         Current deposit account and savings deposit account are called as demand deposits. In the case of demand deposits, money can be deposited at any time and at the same time it can be withdrawn from the account using cheques or debit cards.
·         Current and savings accounts are collectively called as CASA accounts in the case of fully computerized bank branches.
·         Current account is opened for business purposes carrying no interest
·         Savings account is opened for the purpose of saving the personal money and it carries interest. The interest is at present decided by respective banks and RBI is not exercising any control over such rates.
·         Interest earned in savings deposit account for more than Rs. 10000.00 is taxable  according to Income Tax guidelines as at present.

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