Dollar deposits

Dollar deposits refer to money held in an account denominated in U.S. dollars. It's a
straightforward way for individuals or businesses to store and transact in U.S. currency,
providing a convenient means for international trade and financial transactions.

Why are dollar deposits a straightforward way for individuals or businesses?

- Dollar deposits are a straightforward choice for individuals or businesses
because the U.S. dollar is widely accepted globally, providing stability, liquidity,
and diverse financial options.

Savings Account Dollar Deposit: A savings account in U.S. dollars allows you to
deposit and store your money while earning some interest. It's a secure way to save
funds, and you can withdraw or transfer money as needed. Interest rates may vary, and
it's a low-risk option for those looking to build savings over time.

Certificate of Deposit (CDs) :A Certificate of Deposit (CD) is a time deposit offered by

banks where you agree to deposit a specific amount of money for a fixed period. In
return, you receive a higher interest rate compared to regular savings accounts. The
catch is that you can't withdraw the funds before the maturity date without facing
penalties. CDs are a low-risk investment option for individuals seeking a guaranteed
return over a set timeframe.

Secrecy of Bank Deposits

What is the Secrecy of bank deposit under RA 1405?

R.A. 1405. An Act Prohibiting Disclosure Of Or Inquiry Into, Deposits With Any Banking
Institution And Providing Penalty.

Explanation: This law provides a level of secrecy to safeguard the privacy of individuals'
financial affairs. However, there are exceptions, such as cases involving impeachment
proceedings and written consent from the account holder, where disclosure may be
allowed. It's important to consult the latest legal resources for any updates or changes
to the law.

Explanation in general: The secrecy of bank deposits refers to the confidentiality and
privacy measures banks employ to protect the financial information of their clients. This
practice ensures that details about an individual's or entity's account balance,
transactions, and other sensitive information remain private. However, it's essential to
note that this confidentiality is subject to legal and regulatory frameworks, and there are
instances where authorities may access this information under specific circumstances,
such as legal investigations.

TWO TYPES OF DEPOSITS

Demand Deposit

- A demand deposit is a type of bank account, often a checking account, that

allows you to deposit and withdraw money at any time without advance notice. It
offers high liquidity, providing easy access to your funds for everyday
transactions.

Time Deposit
- A time deposit, like a certificate of deposit (CD), is a bank account where you
deposit money for a set period, during which you can't withdraw it without
penalties. In return, you earn higher interest compared to regular accounts. Once
the fixed term ends, you can access your initial deposit and earned interest.