Learning Objectives:

• Distinguish between demand deposits (savings/current) and time deposits.

• Explain the features of key deposit products like CASA.

• Understand the accounting and operational processes for deposits.

3.1 Types of Deposit Accounts
Deposit products are broadly classified into demand deposits and time deposits. Demand deposits, such as Savings Accounts and Current Accounts, offer high liquidity; funds can be withdrawn at any time . Savings Accounts are designed for individuals to save money and earn interest, while Current Accounts are primarily for businesses for frequent transactions . CASA (Current Account and Savings Account) is a metric banks use to measure the proportion of low-cost, stable deposits in their overall funding mix . Time Deposits (Fixed Deposits/Recurring Deposits) lock funds for a specific period and offer higher interest rates .

3.2 Account Operations and Servicing
Day-to-day branch operations involve processing deposits, withdrawals, and payments. This includes bookkeeping tasks such as maintaining ledgers and preparing balance sheets . Branch staff also handle customer inquiries and service requests, ensuring smooth transaction processing and high satisfaction .

3.3 Dormant and Inoperative Accounts
Accounts with no customer-initiated transactions for a prolonged period are classified as dormant or inoperative . For example, in some jurisdictions, this threshold is 6 months for “inactive” and 12 months for “dormant” . Banks must take precautions, such as segregating these files and preventing unauthorised operations. Reactivation requires formal application, identity verification, and re-KYC .