Features Current Deposit Saving Deposit Time Deposit

1. Liquidity Due to the fact that these Savings deposits are
bank deposits are payable generally meant for
on demand, you always keeping money aside for
have immediate access to short to medium-term
your money through goals and earn a better
various methods, interest rate than current
including online, check, accounts. Savings
and ATM transactions. accounts have monthly
These simple accessibility transaction limits, making
options make current them less liquid than
deposit accounts highly current accounts while
liquid. still providing convenient
access to funds.
2. Interest Rate These bank deposits These are bank deposits
typically don't pay that typically have lower
interest. They are interest rates than other
typically used for types of deposits, but they
everyday transactions and still give the account
are created to give the holder some interest
account holder immediate income. A savings
access to funds. account's interest rate
varies depending on a
number of variables,
including the bank and the
balance.
Time deposits, also
referred to as CDs, are
fixed-term investments
that provide higher
interest rates than savings
accounts. Time deposits
have a set term and
typically come with early
withdrawal fees. In
comparison to current and
savings accounts, they are
consequently less liquid.
These are bank deposits
that are held for a
predetermined length of
time, typically several
years or more. Because
the account holder agrees
to keep the money in the
account for a set amount
of time, time deposits
typically offer higher
interest rates than current
and savings deposits. The
interest rate offered
increases with the length
of the deposit. But the
account holder cannot
take money out of a time
deposit before it matures
without paying a fee.

3. Maturity These are bank deposits
that are payable on
demand, so the depositor
may take the money out
whenever they want
without giving any prior
notice.
These are bank deposits
that can typically be
withdrawn at any time
and typically have no set
maturity date. However, if
the account holder
withdraws funds more
frequently or in excess of
certain limits, some banks
may impose fees or
withdrawal limits.
Time deposits, also
referred to as term
deposits or certificates of
deposit (CDs), are bank
deposits with a set
maturity date that can be
anywhere from a few
months to several years.
The depositor consents to
keep the money in the
account for this time
frame in exchange for a
higher interest rate from
the bank than other types
of deposits. An early
withdrawal penalty is
typically applied to time

4. Withdrawal Due to the fact that they
are payable on demand,
this type of deposit offers
immediate access to
money. There is no lock-
in period for current
deposit accounts, and
account holders are free to
withdraw money as much
as they need. You can
make withdrawals using
checkbooks, debit cards,
and electronic fund
transfers, among other
methods.
5. Purpose The majority of daily
business transactions use
these kinds of deposits.
Although most current
deposits do not pay
interest, they are
convenient and provide
quick access to money.
A savings deposit is an
account designed to
encourage people to save
money. They typically
offer interest rates higher
than current deposits but
lower than time deposits.
Savings accounts are less
liquid than current
deposits because of
limitations on the number
of withdrawals allowed
each month. The number
of withdrawals permitted
might be governed by
bank policy or
governmental rules.
Deposits of this nature are
intended to promote
saving. Savings deposits
typically provide a deposits. Time deposits
competitive interest rate
and allow for unlimited
withdrawals. They are
frequently used to build
savings for unanticipated
expenses or long-term
objectives.
deposit accounts.
Time deposits, also
known as fixed deposits,
have higher interest rates
than savings and current
accounts, but they also
have a lock-in period
where money must stay
invested. Time deposits
typically have a maturity
period of one to five
years, after which the
account holder may
withdraw money.
However, there might be a
fee if the account holder
wants to withdraw money
before the maturity
period.
Certificates of Deposit
(CDs) are another name
for these types of
commonly come with a
fixed term and a higher
interest rate than savings
accounts. They provide a
guaranteed return after a
predetermined amount of
time and are used for
longer-term savings
objectives.
6. Interest Payment Typically, no interest is
paid on the amount
deposited in these types of
deposits. Instead, they
serve as a transactional
account for regular
financial operations like
withdrawals, deposits, and
money transfers. Some
banks do, however, grant
holders of current
accounts with high
balances a small interest
rate.
These kinds of deposits These are investments in
pay interest on the which the customer makes
principal amount a fixed deposit for a
deposited. Savings predetermined amount of
account interest rates can time (the term), and the
be fixed or variable, but bank pays the customer
they are typically lower interest on the deposit at
than those on time maturity. Time deposit
deposits. Customers can interest rates are typically
save money and receive higher than savings
interest on their savings deposit interest rates, but
with the help of these they are lower when
deposits. compared to other
investment options like
stocks, mutual funds, etc.
The interest rate rises as
the investment's term
lengthens. But if you take
the money out before it
matures, you usually have
to give up some or all of
the anticipated interest.