MATHS PROJECT 10 GRADE

SYNA SHAH

27

10 F

BANKING

BONAFIED CERTIFICATE

PG.NO CONTENT

4 INTRODUCTION

5-11 TYPES OF BANK ACCOUNTS:

1. FIXED OR TIME DEPOSIT ACCOUNT

2. SAVING BANK DEPOSIT ACCOUNT

3. CURRENT DEPOSIT ACCOUNT

4. RECURRING DEPOSIT ACCOUNT

5. FLEXIBLE ACCOUNT

6. JAN-DHAN ACCOUNT

13 PREVAILING RATE OF INTREST BY STATE BANK OF

INDIA
13 PREVAILING RATE OF INTREST BY PUNJAB

NATIONAL BANK

14 CALCULATION OF INTREST

15 RECURRING BANK QUESTIONS

16 COMPARISION BETWEEN FD AND RD

17 BIBLOGRAPHY

INTRODUCTION:

What is banking?

Banking is an industry that handles cash, credit, and

other financial transactions. Banks provide a safe

place to store extra cash and credit. They offer savings

accounts, certificates of deposit, and checking

accounts. Banks use these deposits to make loans.

These loans include home mortgages, business loans,

and car loans.

How does it work?

Banks are a safe place to deposit excess cash.

The Federal Deposit Insurance Corporation (FDIC)

insures them.1 Banks also pay savers a small percent

of the deposited amount based on an interest rate.

Banks are currently not required to keep any percentage

of each deposit on hand, though the Federal Reserve can

change this. That regulation is called the reserve

requirement. They make money by charging higher

interest rates on their loans than they pay for

deposits.2

TYPES OF BANK ACCOUNTS

Traditionally banks in India have four types of deposit

accounts, namely Current Accounts, Saving Banking

Accounts, Recurring Deposits and, Fixed Deposits.

However, in recent years, due to ever increasing

competition, some banks have introduced new products,

which combine the features of above two or more types

of deposit accounts. These are known by different

names in different banks, e.g 2-in-1 deposits, Smart

Deposits, Power Saving Deposits, Automatic Sweep

Deposits etc. However, these have not been very

popular among the public.

1. FIXED OR TIME DEPOSIT ACCOUNT

2. SAVING BANK DEPOSIT ACCOUNT

3. CURRENT DEPOSIT ACCOUNT

4. RECURRING DEPOSIT ACCOUNT

5. FLEXIBLE ACCOUNT

6. JAN-DHAN ACCOUNT

FIXED DEPOSIT OR TIME DEPOSIT ACCOUNT:

A fixed deposit (FD) is a financial

instrument provided by banks or NBFCs which

provides investors a higher rate of interest than a

regular savings account, until the given maturity

date. It is known as a term deposit or time deposit

in Canada, Australia, New Zealand, India and The

United States, and as a bond in the United Kingdom

The interest rate varies between 4 and 7.50

percent.[1] The tenure of an FD can vary from 7, 15

or 45 days to 1.5 years and can be as high as 10

years.DICGC guarantees amount up to ₹100000 per

depositor per bank.They also offer income

tax and wealth tax benefits.

SAVING BANK DEPOSIT ACCOUNT:

A savings account is an interest-bearing deposit

account held at a bank or other financial institution.

Though these accounts typically pay a modest interestrate, their safety and reliability make them a great

option for parking cash you want available for

short-term needs. Savings accounts have some

limitations on how often you can withdraw funds, but

generally offer exceptional flexibility that’s ideal

for building an emergency fund, saving for a

short-term goal like buying a car or going on vacation,

or simply sweeping surplus cash you don’t need in your

checking account so it can earn more interest

elsewhere.

CURRENT DEPOSIT ACCOUNT:

Current bank account is opened by businessmen who have

a higher number of regular transactions with the bank.

It includes deposits, withdrawals, and contra

transactions. It is also known as Demand Deposit

Account.Current account can be opened in co-operative

bank and commercial bank. In current account, amount

can be deposited and withdrawn at any time without

giving any notice. It is also suitable for making

payments to creditors by using cheques. Cheques

received from customers can be deposited in this

account for collection.In India, current account can

be opened by depositing Rs.5000 to Rs. 25,000. The

customers are allowed to withdraw the amount with

cheques, and they usually do not get any interest.

Generally, current account holders do not get any

interest on their balance lying in current account with

the bank.Current account holder get one important

advantage of overdraft facility.

RECURRING DEPOSIT ACCOUNT:

A recurring deposit is a special kind of term

deposit offered by banks which help people with

regular incomes to deposit a fixed amount every month

into their recurring deposit account and earn interest

at the rate applicable to fixed deposits. It is

similar to making fixed deposits of a certain amount

in monthly installments. This deposit matures on a

specific date in the future along with all the deposits

made every month. Recurring deposit schemes allow

customers an opportunity to build up their savings

through regular monthly deposits of a fixed sum over

a fixed period of time. The minimum period of a

recurring deposit is six months and the maximum is ten

years. The recurring deposit can be funded by standing

instructions which are the instructions by the

customer to the bank to withdraw a certain sum of money

from his savings/current account and credit to the

recurring deposit account.

FLEXIBLE ACCOUNT:

A flexible spending account (FSA), also known as a

flexible spending arrangement, is one of a number of

tax-advantaged financial accounts, resulting in

payroll tax savings.[1] Before the Patient Protection

and Affordable Care Act (PPACA), one significant

disadvantage to using an FSA was that funds not used

by the end of the plan year were forfeited to the

employer, known as the "use it or lose it" rule. Under

the terms of the Affordable Care Act, a plan may permit

an employee to carry over up to $500 into the following

year without losing the funds. The most common type of

flexible spending account, the medical expense FSA,

is similar to a health savings account (HSA) or a

health reimbursement account (HRA). However, while

HSAs and HRAs are almost exclusively used as components

of a consumer-driven health care plan, medical FSAs

are commonly offered with more traditional health plans

as well.

JAN-DHAN ACCOUNT:

Pradhan Mantri Jan Dhan Yojana is a financial inclusion

program of the Government of India open to Indian

citizens (minors of age 10 and older can also open an

account with a guardian to manage it), that aims to

expand affordable access to financial services such as

bank accounts, remittances, credit, insurance and

pensions. This financial inclusion campaign was

launched by the Prime Minister of India Narendra Modi

on 28 August 2014. He had announced this scheme on his

first Independence Day speech on 15 August 2014. Run

by Department of Financial Services, Ministry of

Finance, under this scheme 15 million bank accounts

were opened on inauguration day.The Guinness Book of

World Records recognized this achievement, stating:

"The most bank accounts opened in one week as a part

of the financial inclusion campaign is 18,096,130 and

was achieved by the Government of India from August 23

to 29, 2014".By 27 June 2018, over 318 million bank

accounts were opened and over ₹792 billion were

deposited under the scheme.

PREVAILING RATE OF PREVAILING RATE OF INTREST

INTREST BY STATE BANK OF BY PUNJAB NATIONAL BANK:

INDIA:

Tenure FD Rates

Tenure FD 7 days to 14 days 3.00%

Rates

7 days – 45 4.50% 15 days to 29 3.00%

days days 3.00%

3.25%

46 days – 179 5.50% 30 days to 45 4.00%

days days 4.40%

4.50%

180 days – 5.80% 46 days to 90 4.50%

210 days days

211 days – 5.80% 91 days to 179

364 days days

180 days to 270

days

271 days to 364

days

333 days

444 days 5.25%

1 year – 1 6.10% 555 days 5.25%

year 364 days

1 year 5.25%

2 years – 2 6.10% 1 year 1 day to 2 5.25%

years 364 6.10% years

days

2 years 1 day to 3 5.25%

3 years – 4 years

years 364
days

CALCULATION OF INTREST:

IF WE INVEST 10000 FOR 8%P.A. FOR 5 YEARS, THEN WE

CALCULATE INTREST AS: PRT/100

THIS IS FOR SAVINGS ACCOUNT

FOR A RECURRING ACCOUNT, WE CALCULATE INTEREST AS,

I=(x*n(n+1)*R)/(2*12*100)

‘x’STANDS FOR THE MONTHLY INVESTMENT

‘n’STANDS FOR THE TENURE

‘R’STANDS FOR THE RATE OF INTEREST

CALCULATION 1

X=240

N=15 MONTHS

MATURITY VALUE=3840

I=(X*N(N+1)*R)/2*12*100

I=(40*15(15+1)*R)/2*12*100

I=(240*15*16*R)/2*12*100

I=24R

MATURITY VALUE=NX+I

3840=(15*240)+24R

3840=3600+24R

3840-3600=24R
240=24R

R=240/24

R=10%

CALCULATION 2

M.V=7875

R=9%P.A

T= 2 YEARS= 24 MONTHS

I= P*(N+1)/2*12*(R/100)

= P*(24*25/2*12)*(9/100)

= 9P/4

M.V=P*N+I

7875=(24P/4)+(9P/4)

7875=(96P/4)+(9P/4)

7875=(96P+9P)/4

31500=105P

P=31500/105

P=300

COMPARISION

FD ACCOUNT

P=60000

T=1 YEAR

R=10% p.a.
I= PRT/100

I=(60000*10*1)/100

I=6000

AMOUNT= 60000+6000

= 66000

RD ACCOUNT

x= 5000

n= 1 year= 12 months

r=10% p.a.

I= (x*x(n+1)*R)/2*12*100

I= 5000*12(12+1)*10/2*12*100

I= 5000*12*13*10/2*12*100

I= 3250

MATURITY VALUE= nx+I

=(12*5000)+3250

= 60000+3250

= 63250

BIBLOGRAPHY

https://www.google.com/search?q=types+of+bank+accounts+in+india&oq=TY
PES+OF+BANK+ACCOUNTS&aqs=chrome.0.69i59j69i57j0l6.8294j1j7&sourceid=c

hrome&ie=UTF-8

https://www.google.com/search?q=fixed+or+time+deposit+account&oq=FIXE

D+OR+TIME+DEPOSIT+ACCOUNT&aqs=chrome.0.0l8.10439j1j7&sourceid=chrome&

ie=UTF-8

https://www.google.com/search?q=SAVING+BANK+DEPOSIT+ACCOUNT&oq=SAVING

+BANK+DEPOSIT+ACCOUNT&aqs=chrome..69i57j69i60.8845j1j7&sourceid=chrom

e&ie=UTF-8

https://www.google.com/search?q=current+deposit+account&oq=CURRENT+DE

POSIT+account&aqs=chrome.0.0l7j69i60.6110j1j7&sourceid=chrome&ie=UTF-

https://www.google.com/search?q=recurring+deposit+account&oq=RECURRIN

G+DEPOSIT+ACCOUNT&aqs=chrome.0.0l7j69i60.743j0j7&sourceid=chrome&ie=U

TF-8

https://www.google.com/search?q=flexible+account&oq=FLEXIBLE&aqs=chro

me.1.69i57j0l7.3564j1j7&sourceid=chrome&ie=UTF-8

https://www.google.com/search?sxsrf=ALeKk01mvpMLPJqDe4zxzeYz8t7GWDeWN

g%3A1599112245039&ei=NYRQX4aLAseQ4-EP-fmosA8&q=jan+dhan+account+means

&oq=jan+dhan+account&gs_lcp=CgZwc3ktYWIQARgBMgQIABBHMgQIABBHMgQIABBHM

gQIABBHMgQIABBHMgQIABBHMgQIABBHMgQIABBHUABYAGDgrgNoAHABeACAAQCIAQCSAQ

CYAQCqAQdnd3Mtd2l6wAEB&sclient=psy-ab

https://groww.in/p/fixed-deposit/sbi-fd-interest-rates/

https://www.myloancare.in/fixed-deposit/fd-interest-rates/pnb