Welcome to our latest blog post on “The Bankers Laddar”! As you prepare for your JAIIB exams, we understand the value of concise and targeted learning materials. This post will guide you through key concepts related to Current Accounts, Savings Accounts, and Fixed Deposits, which are frequently tested in the objective questions of the JAIIB exam. Let’s dive in and explore these crucial banking operations.
Current Accounts: Understanding Its Purpose and Eligibility Current accounts are essential for businesses due to their need for frequent transactions. While they are commonly used by both private and government companies, they’re not meant for long-term savings as they offer minimal to no interest. Eligibility for opening a current account extends even to minors and illiterate persons, though it’s more typical for businesses and certain organizations like religious, educational, and charitable institutions.
Savings Accounts: Who Can Open One and Key Features Savings accounts are not just a staple of personal finance; they are also accessible to various demographics, including minors above 10 years and women from different communities, emphasizing inclusivity in banking services. The benefits include safety and a modest interest rate, with special provisions allowing for accounts tailored to economically weaker sections under the Basic Savings Bank Deposit Account (BSBDA), which offers free ATM withdrawals among other features.
Fixed Deposits: Minimum and Maximum Terms, and Early Withdrawal Penalties Fixed Deposits are ideal for those looking to earn higher interest rates over a specified period. The minimum duration can be as short as six months, with maximum terms extending up to ten years (or 120 months). Early withdrawals result in penalties, thus reducing the accrued interest, which emphasizes the importance of planning your financial commitments.
Interactive Q&A Section In this section, we address common queries regarding who can open various accounts and the specifics of account management and benefits. For example, the eligibility for term deposits against which loans can be taken, or the nuances of opening a Certificate of Deposit, with a minimum term as brief as seven days.
Understanding these banking fundamentals is crucial for not only passing the JAIIB exams but also for practical banking operations. We encourage you to create handwritten notes from these summaries to enhance your revision efficiency. For more detailed studies, consider our ePDF notes and MCQs available for purchase.