Topik 2

SAVING DEPOSIT

STIE INDONESIA BANKING SCHOOL

2021
Prepared by Dr.Ir. Indra Darmawan, MM
STIE Indonesia Banking School
 Overview
Topics
1. The Balance sheet
2. Banking fund sources
3. Savings deposit
4. Interest calculation method
5. The risks of saving deposit

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 THE BALANCE SHEET (B/S)
 Three fundamental financial statement, there
are:
 The Balance Sheet (B/S)
 The Income Statement (I/S)
 The Statement of Cash Flows
 The balance sheet displays the company’s total
assets and how the assets are financed, through
either debt (liability) or equity.
 The balance sheet is based on the equation:
Assets = Liabilities + Equity.
Prepared by Dr.Ir. Indra Darmawan, MM
STIE Indonesia Banking School
 ASSETS
Definition
 IFRS (International Financial Reporting Standards)
 An asset is an economic resource controlled by
the entity as a result of past events.
 An economic resource is a right that has the
potential to produce economic benefits.
 GAAP (Generally Accepted Accounting Principals)
Assets are probable future economic benefits
obtained or controlled by a particular entity as a
result of past transactions or events

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 ASSETS
Asset is
 The property owned by a business or economic
entity, that having value and can be used to meet
debts and commitments
 Anything (tangible or intangible) that can be used
to produce positive economic value.
 The economic value is a measure of the benefit
provided by an asset.
 Represent the value of ownership of the firm

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 LIABILITY
Definitions
 IRFS
An obligation of the entity arising from past
events, that can be transfered to an economic
resource (asset).
 GAAP
Obligations or commitments that required to be
reflected or reserved against on a balance sheet
 Australian Accounting Standards Board
The future sacrifices of economic benefits that
the entity is obliged to make to other entities.
Prepared by Dr.Ir. Indra Darmawan, MM
STIE Indonesia Banking School
 LIABILITY
Liability of a Commercial Bank
 Deposits
 Current Deposit
 Saving Deposit
 Time Deposit
 Borrowing
An obligation arising because a bank borrow from
other entity (bank and/non-bank financial
institutions) to financing it activity.
 Others Liability

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 BANKING FUND SOURCES
1. Equity
 Deposits of the shareholder capital
 Last year’s profit reserves that were not shared
 Current profit
2. Deposits (DPK)
 The main banking fund sources,
 Deposits  Checking Account, Saving Account,
and Time Deposit
3. Others
 KLBI, Money Market, Loans, SBPU
 To meet temporary funds needed
 High interest cost

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
Definitions
1. UU No.10 Tahun 1998
Tabungan adalah simpanan yang penarikannya
hanya dapat dilakukan menurut syarat-syarat
tertentu yang disepakati, tetapi tidak dapat ditarik
dengan cek, bilyet giro, dan/atau alat yang
dipersamakan dengan itu.
Syarat penarikan tabungan berbeda antar bank,
sesuai perjanjian, yaitu:
Frekuensi penarikan
Jumlah maksimum penarikan,
Sarana penarikan (pass book/card/transfer)

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
Definitions
2. Investopedia
A savings account  an interest-bearing deposits
account that provides  a modest interest rate.
The financial institutions may limit the number of
withdrawals you can make from your savings
account each month.
They also may  charge fees unless you maintain
a certain average monthly balance in the account.
In most cases  banks do not provide checks for
savings accounts.

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
Definitions
3. The balance
A savings account  a basic type of bank account
that allows you to  deposit money, keep it safe,
and withdrawal funds, while earning interest.
Savings accounts  offered by most banks and
other financial institutions, and typically  pay
interest on your deposits.
Interest rates are relatively low. But, some
savings accounts offer higher interest rates than
others.

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
Advantages for Customers
 Pay interest more than a checking account 
money can grow faster.
 One of the most liquid investments  outside of
checking accounts and cash.
 Easy to access  than to cash a bond or a
retirement account or sell stocks or other assets.

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
Disadvantages for customers
 While the liquidity of a savings account is one of its
key benefits  its ready availability of funds could
tempt you to spend them.
 Savings accounts usually  pay lower interest rates
than Treasury Bills and Certificates of Deposit. As
a result,  they should not be used for a long-term
holding periods.

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
Other characteristics
 Savings account generally have  minimum
balances required to maintain.
 Banks often will charge a montly fee, or if you do not
maintain the minimum balance.
 The fees will be withdrawn from your account, so there
is a possibility to charged overdraft fees if the
account balance goes below zero.

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
DISCUSS
 What the advantages and disadvantages of a
saving account for a Bank
 Interm of interest expense that bank have to pay?
 Interm of availability to lend them out by the bank?

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNT
Opening a Savings Account
 Come to a Bank and get all informations you need
about the saving account.
 You have to be 18 years old or older, but several
banks are available for a person younger than 18.
 Some required documents
 ID Card (KTP) or Passport/KIMS/KITAS (for foreginers)
 Business Lisence (for company)
 Tax ID (NPWP) for Indonesian sitizens
 Complete and sign the application form
 Deposits initial savings fund as a bank’s required
 Receive a pass book and a card to access your
account.

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
Deposit Transactions
 Cash Deposit
 Bring cash money to a bank (traditional way)
 Deposits your money through ATMs  allowing you
to deposits money outside the banking hall and
banking’s hours.
 Check Deposit
 Deposit a check directly into a savings account.
 Funds will be available in a day or longer, depending
on bank’s policy
 Fund Transfer
Transfer funds from account to account or bank to
bank using electronic transfer application, website, or
customer service line.

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
Accessing Money
 Cash Withdrawals
If you need cash money, you can get your funds
directly by visiting a bank or an ATM.
 You need to bring a pass book and withdrawal slip if
you want to get your money directly from a bank, or
 Using a card on an ATM.
 Funds Transfer
Moving your money from saving account to another
account in the same bank or a different bank using
electronic transfer appl., website or customer service
line.

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
Interest calculation methods
1. The lowest balance method
 Interest calculated and paid monthly, based on 
the lowest balance in a month.
 Formula:
i = Lb x r x t : 365
i : interest paid in a month
Lb : the lowest balance in a month
r : annual rate for 1 year
t : the number of days in a month
365 : the number of days in a year.

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
Interest calculation methods
2. The average balance method
 Interest calculated and paid monthly, based on 
the average balance in a month.
 Formula:
i = Ab x r x t : 365
i : interest paid in a month
Ab : the average balance in a month
r : annual rate for 1 year
t : the number of days in a month
365 : the number of days in a year.

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
Interest calculation method
3. The daily balance method
 Interest calculated and paid monthly, based on 
daily balance in a month.
 Formula:
i = Db x r x t : 365
i : interest paid in a month
Db : the daily balance in a month
r : annual rate for 1 year
t : the number of days in a month
365 : the number of days in a year.

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
 Exercise

Calculate the savings interest using :

a. The lowest balance method
b. The average balance method
c. The daily balance method

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
Saving Account Risk
1. Liquidity Risk
 Savings  depend on the clients trust to the
bank that the bank will be able to fulfill its
obligations and repay their savings.
 Liquidity risk  refers to the ability of a bank to
obtain the liquid funds required to return the full
value of deposits, plus interest.
 Liquidity risk  arise from the possibility of a
mismatch in the cash flows between assets and
liabilities

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
Saving Account Risk
2. Interest Rate Risk
 Refers to the chance that an investment in a fixed
income asset will suffer as the result of unexpected
interest rate changes.
 Mitigated by diversifying portfolios to include a
multitude of different assets that have various
maturation schedules.
 Can be managed by  hedging a fixed-rate
income investments using an interest rate swaps
or other instruments..

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
Saving Account Risk
3. Exchange Rate Risk
 Arises when the real value of assets, liabilities, and
obligations held in a foreign currency 
adversely affected by changes in the domestic
exchange rate.
 Banks may attract savings account in a
local/domestic currency, but does not place those
funds in the same currency.
 If the exchange rate in a negative change, the bank
will incur losses when savers withdraw their funds.

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
 SAVINGS ACCOUNTS
Saving Account Risk
4. Reputation Risk
 Reputation risk  the public perception to a bank
that can be damaging a bank.
 very difficult to measure, but must be monitored
constantly.
 It takes time for a bank to build a trustworthy
reputation in the local market, but can be ruined
instantly if the bank does not manage risks
adequately.

Prepared by Dr.Ir. Indra Darmawan, MM

STIE Indonesia Banking School
End of Topic

STIE Indonesia Banking School