Question

Why are deposits in the banks called? What are the benefits of the deposits with the banks?​

Answer 1

$\huge\bigstar\underline\mathtt{Answer:-}$

• Since the deposits in the bank account can be withdrawn on demand. These deposits are called demand deposits.
• People deposit extra cash with the bank by opening a bank account in their name.
• Banks accept the deposits and also pay an interest on these deposits.

$\Large\star\sf\underline{Benefits:-}$

• People's money is safe with the bank and it earn an amount of interest.
• People have all provision to withdraw money as and then they require.

Answer 2

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• Because the deposits in the bank account can be withdrawn on demand, these deposits are called demand deposits.
• Apart from money being safely kept in the banks, people are also paid interest on the amount of money deposited in their bank account.
• Deposits also act as direct money in case of cheque payments.