Professional Documents
Culture Documents
Savings Accounts
- These are intended to provide an incentive for the depositor to save money.
- The depositor can make deposits and withdrawals using the form provided by the bank.
- Banks usually pay an interest rate that is higher than a checking account or a current account.
- Some savings accounts have a passbook, in which transactions are logged in a small booklet
that the depositor keeps.
- Some savings accounts charge a fee if the balance falls below a specified minimum.
Checking or Current Accounts
- Money held under a checking account can be withdrawn through issuance of a check.
- Banks usually allows numerous withdrawals and unlimited deposit under this type of account.
- The interest rate for checking account is usually lower as compared to a savings account.
- The account holder or depositor of a checking account is normally provided at the end of the
month a bank statement showing all the deposits made, checks paid by the bank, and the
balance of the account.
- The depositor is given easy access to the funds as compared to a savings account.
Other Types of Bank Accounts
Time Deposit Account (or a Certificate of Deposit Account)
- Type of a savings account that is held for a fixed-term and can be withdrawn only after the
lapse of the agreed period and by giving notice to the bank.
- The account may be withdrawn also anytime however the bank usually charges penalties.
- This type of account yields high interest.
Deposit Slip
The bank provides deposit slip that the depositor will fill up every time the depositor will
put in money to his account. The usually required information in a deposit slip are:
Account Name - this is the complete name of the depositor that is reflected in the records of
the bank.
If it has a pass book, the account name is indicated on first page inside the passbook.
Account Number - this is a unique identifier of the account maintained by the depositor.
Date of Deposit
Type of Account
Currency
Amount in Words and in Figures - the amount that the depositor wishes to put into his
account. The amount to be deposited maybe in form of cash or check. If it is a cash deposit,
the breakdown of the cash is usually listed in the deposit slip. If it is a check deposit, the
details of the checks are indicated in the deposit slip, for example: Issuing Bank, Address of
the Issuing Bank, date of the check and the amount.
The following are the parties involved in a transaction that uses check as medium of
exchange:
Drawer - the person or entity who makes the check
Payee - the recipient of the money
Drawee - the bank or other financial institution where the cheque can be presented for
payment.
Cross Check
Stale Check
A cheque which a bank will not accept and exchange for money or payment
because it was written more than a certain number of months ago. In the
Philippines a check becomes stale if it exceeds 6 months from the date of the
check.
Identify and Understand the Contents of a Bank Statement
At the end of every month, the bank furnishes a statement to the depositor showing
the movement of the account. It contains all the withdrawals, deposits and balance
of your account after every transaction. It may also indicate bank charges that were
deducted by the bank automatically. Also, interest earned by the account is
likewise reflected