Deposits & Bank Accounts

Recommended prerequisite: Module 01 - Money & Banking Foundations.

Purpose of this module: Deposits are one of the most basic banking topics, yet exam questions often combine simple definitions with operational rules. A learner should understand not only what a savings or fixed deposit is, but also who can operate an account, how joint accounts and nominations work, how premature withdrawal affects interest, what happens when an account becomes inoperative or unclaimed, how NRE/NRO/FCNR(B) accounts differ, and how DICGC insurance is calculated.

What you will learn

By the end of Module 05, you should be able to:

1. distinguish demand deposits from term deposits;
2. compare savings, current, fixed and recurring deposits;
3. explain why current accounts generally do not earn interest;
4. explain how savings-account interest is calculated under RBI's framework;
5. distinguish ownership of funds from authority to operate an account;
6. understand common joint-account operating instructions;
7. explain the nomination facility and the modern multiple-nomination framework;
8. explain how minor accounts work;
9. distinguish active, inoperative and unclaimed deposits;
10. explain maturity, renewal, overdue deposits and premature withdrawal;
11. distinguish callable and non-callable term deposits;
12. compare NRE, NRO and FCNR(B) accounts;
13. explain repatriability and currency-risk differences among NRI accounts;
14. calculate basic DICGC insurance coverage;
15. understand "same right and same capacity"; and
16. distinguish deposit insurance from a guarantee that every rupee in every financial product is protected.