Demand deposits, term deposits, deposits at notice, savings accounts, savings deposits or even savings certificates.
If you're lost in this chaos of terms and want to get an overview, then you've come to the right place. We're about to clear up the chaos of bank deposit terms so that everyone understands.
To begin with, each of you probably has a current account, which is used for personal payment transactions. The balance in this account is known as a demand deposit and you can access it at any time.
In contrast, the overnight money can only be disposed of if it is transferred to a current account and turned into a demand deposit becomes a demand deposit. Call money is a savings deposit and often has a significantly higher interest rate than a current account. Sight deposits and savings deposits are listed together in a bank balance sheet under liability item 2d.
But what exactly constitutes a savings deposit?
Savings deposits are indefinite funds that cannot be used for payment transactions and are only suitable for private individuals and non-profit organizations.
Term depositsTerm deposits, also known as fixed-term deposits, are a financial product with a fixed term of between one month and 10 years, whereby the interest usually increases linearly with the amount and length of the term.
Term deposits are also an interest-bearing financial product, but without a fixed term (unlike term deposits) and with a notice period (unlike call money).
Probably the most famous German yield earner is the savings bookwhich is a documentary evidence of a savings deposit (see above). Depending on the bank, either the presentation of the certificate is sufficient for payment, or additional authentication as the holder is required.
Finally, there are savings certificateswhich offer a fixed, interest-bearing investment for 1-10 years. Savings certificates are debt certificates that represent a claim on the bank for the amount plus interest.
I hope people GQ are also interested in such topics. I look forward to your feedback 👍
Happy New Year to everyone!
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Disclaimer: I'm studying Banking & Finance in my first semester and am also working through the material a bit with posts like this. No guarantee for correctness.
