Demand deposit is a service with unlimited deposit term. With the help of bank card or passbook and reserved password, cash can be accessed at any time through the counter or through bank self-service equipment during bank business hours. Generally speaking, RMB demand deposit is 1 yuan, and the initial deposit amount of foreign currency demand deposit cannot be lower than RMB and the equivalent foreign exchange of RMB 20.
definition
Symmetrical deposit interest of "loan interest" must be included in the bank's operating costs. The amount of deposit interest varies with the type of deposit and the length of term. The longer the deposit term, the more interest income the depositor has, and the lowest interest income is due to the instability of demand deposits. Commercial banks in some countries don't even pay interest on demand deposits.
computing formula
Deposit interest = deposit principal × deposit interest rate × deposit term. According to the different deposit term, deposit interest can also be divided into annual interest, monthly interest and daily interest. It should be noted that the deposit interest rates published by general banks are annual interest rates, and the deposit interest is not simply the principal multiplied by the interest rate, but also combined with the deposit term. For example, a bank's three-month fixed interest rate is 1.9 1%, so the interest due is 1.9 1/4 = 0.48 yuan instead of 1.9 1 yuan.
current deposit
It refers to a kind of bank deposit that depositors can access and transfer money at any time without prior notice. Its forms include checking account, certified check, promissory note, traveler's check and letter of credit. Demand deposits account for the largest part of a country's money supply and are also an important source of funds for commercial banks. In view of the fact that demand deposits not only have the functions of monetary payment and circulation means, but also have strong derivative ability, commercial banks must take demand deposits as the focus of their operations at any time. However, due to frequent deposit and withdrawal, complicated procedures and high cost, commercial banks in western countries generally do not pay interest, and sometimes even charge a certain handling fee.
time deposit
It refers to the deposit that the depositor can only withdraw money on the specified date after the deposit or must notify the bank a few days before the withdrawal. The term can range from 3 months to 5 years, and it can also exceed 10 year. Generally speaking, the longer the deposit term, the higher the interest rate. In addition to the certificate of deposit, the traditional time deposit also has the form of passbook, which is also called passbook time deposit, but it takes 90 days as the basic interest-bearing date and does not bear interest after 90 days.
Compared with demand deposits, time deposits are more stable and have lower operating costs, and the deposit reserve ratio held by commercial banks is correspondingly lower. Therefore, the capital utilization rate of time deposits is often higher than that of demand deposits.
Time deposit is a kind of deposit in which the bank and the depositor agree on the term and interest rate in advance at the time of deposit and withdraw the principal and interest after maturity. Time deposits are used to settle accounts or withdraw cash from time deposit accounts. If customers need funds temporarily, they can apply for early withdrawal or partial early withdrawal.