DIFFERENT TYPES OF

DEPOSITS
Available in Current Market

AUGUST 27, 2015

GULTEKIN BINTE AZAD, ANIKA NAWAR, MAHMUDA SULTANA

Management Trainee, The City Bank Limited

CONTENTS
Deposits- Definition and Purpose ..................................................................................................................................2
Major types of Deposits .................................................................................................................................................2
Current Market Situation ...............................................................................................................................................2
Savings Account / Special Savings Accounts ............................................................................................................3
Term Deposits............................................................................................................................................................4
Salary Accounts .............................................................................................................................................................5
Deposits Offered at The City Bank Limited ..................................................................................................................5
Current Account ........................................................................................................................................................5
Savings Account ........................................................................................................................................................6
High Value Savings Account .....................................................................................................................................6
City Savings Delight ..................................................................................................................................................7
Student Saving Account ............................................................................................................................................8
New Borns Deposit Account ....................................................................................................................................8
RMG Workers Account............................................................................................................................................9
General DPS Account ................................................................................................................................................9
Insurance Backed DPS Account ................................................................................................................................9
Fixed Deposit ........................................................................................................................................................... 10
Take Aways ................................................................................................................................................................. 10

DEPOSITS- DEFINITION AND PURPOSE

A deposit account is a current account, savings account, or other type of bank account, at a banking
institution that allows money to be deposited and withdrawn by the account holder. These
transactions are recorded on the bank's books, and the resulting balance is recorded as a liability
for the bank, and represents the amount owed by the bank to the customer. Some banks charge a
fee for this service, while others may pay the customer interest on the funds deposited.
Deposits are considered as banks main source more deposits are transformed into loans, the higher
the interest margin and profit. Hence, deposits generally have positive impact on profitability of
the banks. But, if a bank transform its deposits into loans efficiently it may bring negative impact
on profitability also.
MAJOR TYPES OF DEPOSITS
Checking accounts: A deposit account held at a bank or other financial institution, for the purpose
of securely and quickly providing frequent access to funds on demand, through a variety of
different channels. Because money is available on demand these accounts are also referred to as
demand accounts or demand deposit accounts.
Savings accounts: Accounts maintained by retail banks that pay interest but cannot be used
directly as money (for example, by writing a cheque). Although not as convenient to use as
checking accounts, these accounts let customers keep liquid assets while still earning a monetary
return.
Money market deposit account: A deposit account with a relatively high rate of interest, and
short notice (or no notice) required for withdrawals. In the United States, it is a style of instant
access deposit subject to federal savings account regulations, such as a monthly transaction limit.
Term deposit: A money deposit at a banking institution that cannot be withdrawn for a preset
fixed 'term' or period of time. When the term is over it can be withdrawn or it can be rolled over
for another term. Generally speaking, the longer the term the better the yield on the money.
CURRENT MARKET SITUATION
There are numerous deposit products in the financial market offered by Private Commercial Banks.

For the purpose of comparison, two types of deposit products are taken into consideration, namely:
SAVINGS ACCOUNT / SPECIAL SAVINGS ACCOUNTS
Savings Account is the most popular account among the account holders. Savings Account is
opened by any individual for the purpose of savings. Traditionally it credits interest to the account
of the customers daily/ monthly/ quarterly or half yearly subject to the policy of the bank. This
deposit is intended primarily for small-scale savers. The main object of this account is promotion
of saving. Hence there are restriction of withdrawals in a month and week. Heavy withdrawals are
permitted only against prior notice. Interest is given on savings deposit if full fill certain conditions.
For the purpose of comparison Savings Account is divided into two parts. These are
Regular Savings Accounts: Certain areas which were taken into consideration while comparing
the offerings.
Special Savings Account: Special Savings Accounts are separate accounts offered by some of the
PCBs in Bangladesh besides the regular savings accounts. These types of accounts include Salary
Account, Access Account, Graduate Account, High Performance Account etc.
Minimum
PCBs

Products

Balance/

Interest Rate

Installment
SCB

Super Savers

BDT 50,000.00

6.00%

BDT 5,00,000.00

6.00%

BDT 30,000.00 /

7.00% /

BDT 50,000.00 /

7.50% /

Account

HSBC

DBL

Savings Plus

Savings Bundle
Product

BDT 1,00,000.00
8.50%
Bank

Double Benefit

Asia

Scheme

BDT 50,000.00

6.50%.

The City

City Onayash

BDT 50,000.00

4.50%

EBL

High Performance

BDT 50,000.00

6.50%

Account
TERM DEPOSITS
Term deposits are those types of accounts where the principal amount is deposited for a particular
period and the interest is credited after a particular time period and the whole amount is credited
to the customer at the end of maturity. Several types of deposit products are discussed below. A
fixed deposit is one which is payable after the expiry of a predetermined period fixed by the
customer himself. The period varies from 3 months to 3 years. As usual, the prospective fixed
deposit holder is expected to fill up an application form prescribed for the purpose, stating the
amount and the period of deposit. The application itself contains the rules and regulations of the
deposit in addition to the space for specimen signature. At the time of opening the deposit account,
the bank issues a receipt acknowledging the receipt of money on deposit account. It is popularly
known as Fixed Deposit Receipt (FDR). It contains the amount of deposit, the name of the holder
of the deposit, the rate of interest, due date etc.
PCBs

Products

HSBC

Monthly

Minimum Balance/ Installment

Interest Minimum Deposit

Bearing Time

Tenor
Maximum

BDT 5,00,000.00

years

Minimum deposit

Maximum

BDT 50,000.00

years.

Deposit
BRAC

DBL

Abiram

Income Unlimited

In multiples of BDT 50,000.00. However the 3 years

minimum & maximum
deposit

will

be BDT 1,00,000.00 & BDT

50,00,000.00
The City

Ichchapurun

Minimum deposit

1/2/3/5 years

BDT 30,000.00
Trust

Monthly

Benefit Deposit of BDT 1,00,000.00 and multiples thereof, 5 years

Deposit Scheme

but maximum

BDT 25,00,000.00

PBL

Monthly

Benefit Deposit of BDT 25,000.00 and multiples thereof, but 5 years

Deposit Scheme

maximum
BDT 25,00,000.00

EBL

Monthly

Benefit Deposit of BDT 1,00,000.00 and multiples thereof, 1/2/3 years

Deposit Scheme

and no maximum limit

SALARY ACCOUNTS
Maximum PCBs offer salary account for the group of employees of an organization. SCB and
HSBC have the largest book of Salary Accounts till date. This account is customized according to
the contract signed by both the parties. They are followed by The City Bank which has the second
largest salary accounts. Special arrangements are done to waive certain charges and facilitate the
customer group. For example, for the City there are no initial deposit for a salary account. BRAC
Bank allows the zero and negative balance facilities whereas HSBC and SCB provide the ATM
facility with least charges. EBL also customizes the salary accounts in terms of agreement between
both the parties. Normal Savings rate is applicable and no minimum balance is required for most
of the cases. Recently, they have launched EEPP (EBL Extra Privilege Package) where the salary
account holders will have a consolidated package of benefits.
DEPOSITS OFFERED AT THE CITY BANK LIMITED
CURRENT ACCOUNT
Our current account meets the needs of individual and commercial customers through our schedule
benefit.
Features:

Cheque-book facility.

Opportunity to apply for safe deposit locker facility.

Debit Card for easy cash withdrawal.

City Maxx Card for easy shopping.

Cash back facility on spending amount through City Maxx Card.

Collect foreign remittance in both T.C. & Taka draft.

Transfer of fund on Standing Instruction Arrangement.

Collection of cheques through Clearing House.

Online banking service.

City Touch (Internet Banking), SMS Alert & Phone Banking Facility.

SAVINGS ACCOUNT
Each & every individual maintains a personal savings account with a bank to manage his/her dayto-day financial needs. General Savings account is a sound savings account for retail customer.
We give the major facilities and services to our customer through 114 branches allover in
Bangladesh with our skilled manpower
Features:

Cheque-book facility.

Opportunity to apply for safe deposit locker facility.

Debit Card for easy cash withdrawal.

City Maxx Card for easy shopping.

Cash back facility on spending amount through City Maxx Card.

Collect foreign remittance in both T.C. & Taka draft.

Utility payment service

Transfer of fund on Standing Instruction Arrangement.

Collection of cheques through Clearing House.

Online banking service.

City Touch (Internet Banking), SMS Alert & Phone Banking Facility.

HIGH VALUE SAVINGS ACCOUNT

Earn easy on your savings account, earn profit every month!

High Value Savings Account is a unique kind of savings account which calculates interest on your

daily balance and pays interest to you every month. It is a major departure from the conventional
savings account available in the market. All such accounts calculate interest on the average or
lowest balance of the month, while High Value Savings Account does on daily product basis. Not
only that, while those conventional savings accounts pays interest only twice a year - in June and
December - High Value Savings Account pays it to you every month. Happiness at each month
end!
Features:

Cheque-book facility.

Interest on daily balance.

Every month's interest earning goes into your account automatically.

Opportunity to apply for - safe deposit locker facility.

Debit Card for easy cash withdrawal.

City Maxx Card for easy shopping.

Cash back facility on spending amount through City Maxx Card.

Collect foreign remittance in both T.C. & Taka draft.

Utility payment service

Transfer of fund on Standing Instruction Arrangement.

Collection of cheques through Clearing House.

Online banking service.

City Touch (Internet Banking), SMS Alert & Phone Banking Facility.

CITY SAVINGS DELIGHT

City bank introduces "Savings Delight Account"- a new premium savings account that gives you
up to 7.5% interest on your savings. You can also maximize your savings with amazing privileges
from City Maxx American Express Card. Interest will be calculated on daily closing balance and
credited to your account quarterly basis.
Interest Rate:
Daily End Balance

Interest Rate

Balance from BDT 3,000,000 and above

7.50 %

Balance from BDT 2,000,000 to 2,999,999 7.00 %

Balance from 1,000,000 to1, 999,999 6.00 %
Balance from 500,000 to 999,999

5.50 %

Balance from 100,000 to 499,999

5.00 %

Privilege with City Maxx American Express Card:

Earn up to 7% cash back at leading grocery stores across the Bangladesh*.

Earn up to 2% cash back on any purchase by your card *.

Earn interest for up to 15 days even after you have spent your money.

STUDENT SAVING ACCOUNT

Savings account tailored specifically for students below the age of 18. It is to help them develop
the habit of saving up and making them financially responsible.
Eligibility:

Age: At least 6 to below 18 years (for schoolsavings) and 18 to 24 (for college level and
higher)

Nationality: Bangladeshi

Birth Certificate, NID

Valid student ID or confirmation from appropriate authority

Interest Rate: 7.5%

Features:

Free Passport Endorsement.

No Account Maintenance Fee & Minimum Balance.

Interest on daily balance.

NEW BORNS DEPOSIT ACCOUNT

Every child is special to the parents. New Borns Deposit Account is the account for parents who

wish to open account in the name of their new born baby. The account comes up with a
(mandatory) unique facility of Insurance Backed DPS, which will help the parents/legal guardian
to save and raise fund for the new born baby's future.
RMG WORKERS ACCOUNT
There is a significant opportunity to provide a range of financial services to Garments Workers.
The City Bank is offering deposit product of savings nature for Garments workers. Our primary
objective of this product is to bring banking service to garments workers. We give the major
facilities and services to our customer through 114 branches allover in Bangladesh with our skilled
manpower.
Features:

It is a non checking account.

Cash Withdrawal facility with Cash Withdrawal Slip.

No minimum balance requirement.

Opportunity to open account with only BDT 100.

No Account Maintenance Fee.

Call Center service.

GENERAL DPS ACCOUNT

It is an exceptional DPS product that is distinctly more attractive than the prevalent DPS products
in the market. You receive a hefty sum at the end of the term against your monthly deposit of small
installments. It's a perfect way to secure financial future!

INSURANCE BACKED DPS ACCOUNT

It is a unique monthly deposit scheme that you open for your kids to safeguard their future against
all uncertainties and risks. As a guardian of the child you can open this account which builds great
& unmatchable savings for you over the years. By the time your child is past his or her school age,
there is this sufficient cash in your hand to take care of his / her higher education, marriage or other
such large expenses.

FIXED DEPOSIT
For long term interest andhigher interest, anyone can open 1, 3, 6, 12, 24, 36 months FD account.
Term

Interest Rate

1(one) month

6.00%

45 day's

6.00%

3 (Three) months
Below Tk. 5.00 Crore

8.25%

Tk. 5.00 Crore & Above 8.50%

6 (Six) months
Below Tk. 5.00 Crore

8.50%

Tk. 5.00 Crore & Above 8.75%

1 (One) Year

8.75%

02 (Two)Years

8.75%

03 (Three) Years

8.75%

Monthly Interest paying FD account and Double money FD account

These are FD accounts with lucrative features, one with DPS features and other with double cash
back opportunity.
TAKE AWAYS

So, from analyzing various deposit products of different banks, it can be stated that all banks offer
different variations of four broad category of deposits. Those are:

Deposit Account

Savings Bank
Account

Term Deposit
Account

Current Deposit
Account

Recurring Deposit
Account

RMG workers'

Fixed Deposit

DPS

Savings delight

Double Cash back

FD

Monthly DPS

School plan

Monthly
Installment FD

Students' Account

other Savings

others FD

New Born's
Account