The different types of deposits are explained below:

(1) Fixed Deposits : Fixed deposit is a type bank account in which certain fixed amount is deposited and kept in the bank for certain fixed period of time bearing fixed interest rate. The rate of interest paid on fixed deposit is higher than the rate of interest paid on other types of deposits. This rate of interest varies with the deposit period. Interest may also be paid periodically or annually. On Premature withdrawal of deposit before maturity date lower rate of interest is given. The deposit holder gets Fixed Deposit Receipt (FDR) issued by the bank. Loan can be obtained against this FDR.

(2) Recurring deposit : Recurring deposit is an account where depositor is required to deposit certain fixed amount at regular interval say monthly for certain fixed period. On the date of maturity, depositor gets the total amount deposited and interest accrued on such deposit amount. Rate of interest paid is higher and varies according to period of time. The depositor is given pass j book to record the entries of deposits, ft is taken by salaried people and businessmen who have regular income.

(3) Demand deposit: The demand deposit is one in which deposited amount is repaid to the accountholder as and when demanded. The amount of money can be withdrawn by the accountholder from the bank by using withdrawal slips, cheques, ATM cards, online transfer, etc.

(4) Savings deposit : A bank account designed for the personal savings is called savings account. The main aim of this deposit account is to inculcate the regular habit of savings among the common people. This account is suitable for those people who have fixed and regular income like salaries, wages, etc. Although there is no restriction on the depositing of money but frequent withdrawals are not permitted by the bank. Interest on balance amount is credited in this account quarterly or half yearly. Pass book, cheque book, balance on SMS, account statement, etc. are provided to the accountholders to know the position of account.

Some banks provide to their accountholders flexi deposit facility which combines the advantages of savings account and fixed deposit account. In case of multiple option deposit account, the excess amount above certain predetermined limit gets automatically transferred from Savings Account to fixed deposit account. Under this type of account, if adequate fund is not available in savings account to honour the cheques, then the funds get transferred automatically from fixed deposit account to savings deposit account.