NAME: TEACHER:

________________________________ _______________________________

STRAND AND SECTION: DATE:

________________________________ _______________________________

Fundamentals Of Accountancy, Business and Management 2 -

Grade 12- Quarter 1 Week 8

IDENTIFYING DIFFERENT TYPES OF BANK ACCOUNTS NORMALLY

MAINTAINED BY A BUSINESS

BACKGROUND INFORMATION FOR LEARNERS

In this learning activity sheet, we are going to learn the different types of bank accounts
used in a business. Normally, a bank account represents funds entrusted by a depositor or
a business owner to a bank for safekeeping. There are three basic types of bank accounts
are:

TYPES OF BANK ACCOUNTS

1. Savings Account is a bank account that earns a

modest interest rate and is intended to encourage
savings. A savings is normally evidenced by a

The passbook
and withdrawals, the amount of interest earned by the
deposit, and the balance of the account.
The depositor may also opt to receive an automatic
teller machine (ATM) card either in lieu of a passbook
or together with a passbook. An ATM Card is a plastic
card, can be used as a debit card, meaning you can
use it to pay electronically. An interest on savings
deposit is accrued daily, based on the end of day
balance, but is reflected on the account at the end of
every quarter.

2. Current or Checking Account is a bank account

wherein the depositor can write checks.

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 A check is an instrument that orders a bank (drawee) to pay the person named on the

account. A current or checking account can be either of the following:

a. Basic Check Account usually do not pay interests; or
b. Interest-Bearing Checking Account pays interest just like a savings account.

1. Time Deposit (Certificate of Deposit or Term

Deposit) refers to an interest-bearing fund
maintained at a bank for a fixed period such as
30 days, 60 days, 90 days, etc. A time deposit
is similar to a savings account, but it earns a
higher interest rate. Moreover, a time deposit is
denominated in fixed amounts and, normally,
cannot be withdrawn until its maturity date. A
Time Deposit is evidenced by a certificate of
Deposit.

OTHER TYPES OF BANK ACCOUNTS

2. Dollar Account and Other Foreign Currency

Accounts is a dollar currency that allows the
business to withdraw in peso or dollar, opting to
cash out in the currency with the better
exchange rate.

Most foreign currency bank accounts in the Philippines come with a passbook and are
typically available in the following currencies:

Australian Dollar Chinese Yuan

British Pound Euro
Canadian Dollar Hong Kong Dollar
Japanese Yen US Dollar
Singapore Dollar

3. Joint Account is used whether to open an individual account or a joint account. Business
partners, associations, and couples commonly use a joint account for convenience and
transparency in managing their shared income and expenses. Held under more than one

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 name, joint bank accounts can be a savings account, a checking account, or a time

account needs the signature of both account holders for withdrawals. On the other hand,
a j -
signature.

4. Money Market Accounts are considered a cross between a savings and checking
account. Banks typically offer a higher interest rate on money market accounts than on
savings accounts and can also give limited monthly access to money via checks and a
debit card.

LEARNING COMPETENCY

Identifying the types of bank accounts normally maintained by a business.

(ABM_FABM12-IIc-5)

ACTIVITIES

ACTIVITY 1: FILL THE BLANKS.

Direction: Supply the correct missing word in each sentence by writing it on the space
provided.

1. The bank account that earns moderate interest rate and promotes saving is called
________________.
2. Basic Check Account is usually _______ pay interests.
3. Time deposit is similar to a savings account, but it earns __________ interest rate.
4. The passbook shows the balance of an account, while a/an _______________ is a
plastic card that can be used as a debit card.
5. An _____________ is reflected on the account at the end of every quarter in a saving
deposit.

ACTIVITY 2: TRUE OR FALSE.

Direction: Write True if the statement is correct and False if the statement is incorrect.

1. Certificate of Deposit or Term Deposit refers to an interest-bearing fund maintained at

a bank for a variable period of time.
2. A time deposit is denominated in fixed amounts and, normally, cannot be withdrawn
until its deposit date.
3. Just like saving accounts, Interest-Bearing Checking Account also pays interest.
4. An interest on savings deposit is accrued monthly.
5. A check is an instrument that orders a bank (payee) to pay the person named on the
check or the bearer thereof (drawee).

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ACTIVITY 3: COMPARE AND CONTRAST.
On your answer sheet, draw a Venn diagram, compare and contrast SAVING
ACCOUNT and CHECKING ACCOUNT. How are they alike? How are they different?
Give at least 2 similarities and 2 differences.

SAVINGS ACCOUNT CHECKING ACCOUNT

Word Puzzle: Locate the words that are best described in each statement given
below.
M O N E Y M A R K E T A C C O U N T S T
P O W E R T A E G T C O H V T F U V G I
E W G H S E S C I I H U P H G H Y Y F S
R F G R T R D K G S E H E Q F G H G G O
U A D T A R O H Z E M A R K E T Y C H P
H Y Y T E O O U C E A Z A R E X U I P E
O F R Y B U S I N E S S Y Y C V G O O D
J E R S F Y U K G R T U O U R G T S G E
O U S S F H D U N G F Y I L K J G D B M
E A F G G T N U O C C A R A L L O D E I
P P R D G T N U O C C A S G N I V A S T

Hint:
1. This is the bank account that earns moderate interest rate and promotes saving.
2. Savings is normally evidenced by this type of document.

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 3. This is considered cross between a savings and checking account.
4. It is an interest-bearing fund maintained at banks for a fixed period of time.
5. Allows the business to withdraw in peso or dollar, opted to cash out in the
currency with the better exchange rate.

REFLECTION

Congratulations! You have completed the lessons successfully. Before going to the
next learning activity, reflect on the activities you have done.

I learned______________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

A question I have is ____________________________________________

___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

___________________________________________________
___________________________________________________________________
___________________________________________________________________

I realized _____________________________________________________
___________________________________________________________________
___________________________________________________________________

REFERENCES

Durana, Merlita M. Fundamentals of Accountancy Business, and Management 2. Makati City:

Diwa Learning System INC. 2017
Millan and Ferrer, Fundamentals of Accountancy, Business & Management 2 (2019),
Philippines: Bandolin Enterprise
Online References:
https://www.balikbayad.ph/blog/different-types-of-bank-accounts-in-the-philippines/
https://www.ramseysolutions.com/banking/types-of-bank-accounts

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