Bank - Types of Deposit
People deposit their extra cash in bank. A bank in addition to keeping the money also pays interest on the deposit to the depositor. Thus bank deposits are also called demand deposits.

A person simply needs to have an account with the bank to deposit money. A cheque can be used to make payment directly from a bank deposit without using cash.

A cheque is a written instruction to a bank by an account holder to pay a specific sum to a specific person from his deposit. A cheque has all the information about the person to whom payment is to be made, the amount and date of payment and signature of account holder issuing the cheque.

Summary

People deposit their extra cash in bank. A bank in addition to keeping the money also pays interest on the deposit to the depositor. Thus bank deposits are also called demand deposits.

A person simply needs to have an account with the bank to deposit money. A cheque can be used to make payment directly from a bank deposit without using cash.

A cheque is a written instruction to a bank by an account holder to pay a specific sum to a specific person from his deposit. A cheque has all the information about the person to whom payment is to be made, the amount and date of payment and signature of account holder issuing the cheque.

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