What is a Deposit Accounts?
Deposit account is the type of account specially designed to meet the needs of those customers who want to place their surplus funds in a financial institution, in a secure environment with the aim of earning profit on them. Deposit accounts usually offer higher rate of return on the invested amount as compared to a savings account. The deposit account holds your investment for a certain time which is decided by the depositor. The investor deposits the funds for a fixed time frame, which may range from 1 month upto 10 years.
Key Features of a Deposit Accounts
Key features of a deposit account are as follows:
- It offers higher rate of return on the deposited amount
- The interest rate is fixed for a certain time period
- May payback the earned profit on monthly, quarterly, or annual basis
- The investor can renew its fixed term at any time before encashment
- Provides free E-statements and internet banking
- Offers an opportunity to encash TDR at any point of time before maturity
Documents Required to Open a Deposit Account
Documents Required for the opening of a Deposit account are as follows:
- Attested copy of a CNIC along with original CNIC
- Two (2) passport size photographs
- Verified copy of a utility bill (electricity/telephone/water)
- Proof of source of income
- Tax number (if any to avoid double taxation)
- Must fall under the age bracket of 21- 65 years
Eligibility Criteria for Deposit Accounts
Eligibility Criteria to open a Deposit accounts are as follows:
- The individual must be a Pakistani citizen
The individual must be above 18 years old
Please note that there are several other savings & investment options (other than deposit accounts offered by retail banks) that can be explored here in the Mutual Funds comparison service.