Introduction to Retail Deposit
A deposit is money placed into a banking institution for safekeeping. Bank deposits are made to keep amount at a banking institution, such as savings accounts. The account holder (Bank customer who has an account with the bank) has the right to withdraw deposited funds, as set forth in the terms and conditions of the account.
There are different types of deposit accounts which can be maintained by individuals with the bank, these are called as Retail deposits i.e. the deposits which individual customers (not businesses ) maintain with the banks. Retail deposits here refer to time deposits which are money deposit at a banking institution that cannot be withdrawn for a preset fixed 'term' or period of time and demand deposits which are the money deposits in banking institution without any limit on deposits and withdrawals and no definite period.
The rate of return is higher for time deposits than for demand deposits because the requirement that the deposit be held for a pre - specified term gives the bank the ability to invest it in a higher-gain financial product class. The bank provides its customers who hold time deposits with a receipt for time deposit. This receipt is known as the Certificate Of Deposit and has details like duration for which the deposit is made, the amount of deposit, rate of interest etc. The bank provides its demand deposits holders and time deposit holders, passbook facility.
A Passbook is a paper book used to record bank transactions of the account. This document gives a solution for catering to the Retail Deposits practice to be followed by banks in China.
Below types of Deposit Accounts need to be made available for individual customers for banks in China:
Demand Deposits
- Creation of Main Demand Deposit account in both CNY and non-CNY currency.
- Creation of sub accounts linked to passbook of main demand deposit account .
- Provision of issuance of passbook facility to the demand deposit account
- Facility to deposit and withdrawal in demand deposit account .
- Facility to signature checking in the account at time of cash withdrawal transactions.
- Accrual and capitalization of interest in account.
- Closure of demand deposits .
Time Deposits
The following time deposits are described below:
Time Saving Deposit
- Opening of time savings deposits in both CNY and non-CNY currency.
- Term and amount of the deposit to be set at time of deposit opening.
- Setting minimum deposit amount and minimum required balance for the deposit account .
- Account opening deposit to be made only one time for the deposit account.
- Rollover facility to be provided for deposit .
- Certificate of deposit and passbook facility to be provided in deposit account .
- Partial withdrawal up to minimum balance allowed one time for the deposit account.
- Premature closure and withdrawal allowed for deposit account.
- Ability to accrue and capitalize interest and to close time deposit accounts.
Call Deposits
- Opening of call deposits in both CNY and non-CNY currency.
- Amount of the deposit to be set at time of deposit opening.
- Setting minimum deposit amount and minimum amount that can be withdrawn for the deposit account.
- Account opening deposit to be made only one time for the deposit account.
- Certificate of deposit and passbook facility to be provided in deposit account.
- Partial withdrawal allowed multiple times for the deposit account.
- Facility to calculate different interest rate depends on withdrawal and maturity time of the deposit.
- Premature closure and withdrawal allowed for deposit account.
- Ability to accrue and capitalise interest and to close time deposit accounts.
Club Savings Time Deposits
- Opening of Club Saving Deposit in CNY only.
- Amount and term of the deposit to be set at time of deposit opening.
- Principal amount to be deposit monthly .
- Certificate of deposit and passbook facility to be provided in deposit account.
- Facility to calculate different interest rate depends on withdrawal and maturity time of the deposit.
- Premature closure and withdrawal allowed for deposit account.
- Ability to accrue and capitalize interest and to close time deposit accounts.
Educational Savings Deposits
- Opening of educational saving deposit in CNY only.
- Amount and term of the deposit to be set at time of deposit opening.
- Principal amount to be deposit monthly.
- Certificate of deposit and passbook facility to be provided in deposit account.
- Facility to calculate different interest rate depends on withdrawal and maturity time of the deposit.
- Premature closure and withdrawal allowed for deposit account.
- Ability to accrue and capitalize interest and to close time deposit accounts.
- Special privileged for interest rate to be provided if the customer has student status
Time or Current Savings Optional Deposit
- Opening of Time or current Saving Optional Deposit in CNY only.
- Amount of the deposit to be set at time of deposit opening.
- Account opening deposit to be made only one time for the deposit account.
- Certificate of deposit and passbook facility to be provided in deposit account .
- Facility to calculate different interest rate depends on withdrawal and maturity time of the deposit.
- Ability to accrue and capitalize interest and to close time deposit accounts.
Principal Receiving and Interest Withdrawing Time Savings Deposits
- Opening of principal receiving and interest withdrawing time savings in CNY only.
- Term and amount of the deposit to be set at time of deposit opening.
- Setting minimum deposit amount and minimum required balance for the deposit account.
- Account opening deposit to be made only one time for the deposit account.
- Interest to be withdrawn from account at set frequency.
- Certificate of deposit and passbook facility to be provided in deposit account.
- Ability to accrue and capitalize interest and to close time deposit accounts.
Club Savings Time Deposits
- Deposit account can be opened in CNY only.
- Deposit can be opened as per the allowed term.
- Amount and term of the deposit to be set at time of deposit opening.
- Facility of partial withdrawal not allowed for deposit.
- Setting minimum deposit amount.
- Account opening deposit to be made monthly for the deposit account.
- Interest to be capitalized as per account closure date.
- Ability to accrue and capitalize interest and to close time deposit accounts.
Educational Savings Deposits
- Deposit account can be opened in CNY only.
- Deposit can be opened as per the allowed term.
- Amount and term of the deposit to be set at time of deposit opening.
- Facility of partial withdrawal not allowed for deposit.
- Setting minimum deposit amount.
- Account opening deposit to be made monthly for the deposit account.
- Interest to be capitalized as per account closure date.
- Ability to accrue and capitalize interest and to close time deposit accounts
- Special interest calculation to be done with customers with student status.
Term of the Deposit is not assigned at Time of Deposit Opening
- Amount of the deposit to be set at time of deposit opening.
- Facility of partial withdrawal not allowed for deposit.
- Setting minimum deposit amount.
- Account opening deposit to be made only one time for the deposit account.
- Interest to be capitalized as per account closure date.
- Ability to accrue and capitalize interest and to close time deposit accounts.
Principal Receiving and Interest Withdrawing Time Savings Deposits
- Deposit account can be opened in CNY only.
- Deposit can be opened as per the allowed term.
- Amount and term of the deposit to be set at time of deposit opening.
- Facility of partial withdrawal not allowed for deposit.
- Setting minimum deposit amount.
- Account opening deposit to be made only one time for the deposit account.
- Interest to be withdrawn from account at set frequency
- Certificate of deposit and passbook facility to be provided in deposit account.
- Premature closure and withdrawal for the deposit is allowed.
- Interest would be accrued daily and capitalized on deposit closure.
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