Commercial Banks play an important role in mobilizing savings from the individual savers. They provide the households, the most important agency where they may deposit their savings, to earn income based on interest assuring a high degree of security of their funds. 

There are various kinds of deposits through which Commercial Banks mobilize funds :

1. Fixed Deposit Account : In such deposits, the deposited amount can be withdrawn only after the period of time agreed upon by the bank and the depositor. The interest rates are higher in case of such deposits. The longer the period, higher is the interest rate. However, in practice banks allow the depositors to withdraw funds from such deposits even before the maturity period, but at a low interest.

2. Current Account : A depositor can withdraw their money from such accounts at any time. Usually no interest is paid by the bank on such deposits, but in fact, the bank charges some amount for the services rendered on maintaining such deposits. In some cases, the bank provides overdraft facility also to the depositor against certain securities or personal guarantee. Such deposits are mainly kept by traders and industrialists who are required to make regular deposits and payments through banks.

3. Savings Account : This kind of account is opened by banks with the objective of collecting small savings from the people who have small earnings, and deposit, in small amounts as they like, but the withdrawals are allowed, thrice a week only. However, the rate of interest is less than that on fixed deposits.

4 Recurring Account : In case of such deposits, an account holder has to deposit certain fixed amount every month for a specified period. The amount accumulated along with interest is paid to the depositor after the specified period. Rate of interest paid by the bank is higher than the savings account but less than the fixed deposit account.