In ACBL, there are the following types of accounts:
- Current account.
- Saving Account.
- Askari Special Deposit Account.
- Askari Bachat Certificate.
CURRENT ACCOUNT
In current account there is no interest on it. It is for only transaction purposes. They are paid on demand. When a banker accepts a demand deposit, he incurs the obligation of the paying all cheques drawn against him to the extended of the balance in the account. As there is no profit paid on this account it is also called chequing account because cheques can be drawn on it. Current account is mostly opened for business.
SAVING ACCOUNT
The purpose of this account is to induce the habit of saving
individuals in the neighborhood. The profit is on the basis of 8.5% per
6 month. The minimum deposit for opening the account is Rs.100/- (as
obvious in the Annexure).
Though individuals open such accounts for saving purpose, persons
belonging to Armed forces and different military institutions are free
to use this account on current basis.
ASKARI SPECIAL DEPOSIT ACCOUNTANT
ASDA account is an interest bearing current account interest is paid.
The payment of return is monthly, where as the rate of return with
aspect to the amount of minimum deposit clear from deposit schedules in
following table). It is also checking account because cheques can be
drawn on it. It is necessary for this account that the client must
maintain a minimum balance of Rs. 50,000 at the end of the month.
That’s why it is similar to current account. It is mostly opened by
Business but individuals too open this account.
ASKARI BACHAT ACCOUNT
ABCs are long term fixed deposit for 3 and 5 years. Theses are not term
deposits because payment of return is on monthly basis rather than on
maturity of deposits. The minimum balance requirement is Rs. 25000/-
and maximum balance requirement is Rs. 1.0 Million. If ABC is for
3-years, the rate of return for 3-years is 12% if ABCs is for 5-years
the rate of return is 13%. Because in such account the balance is kept
for either '3' or '5' years within the bank no cheque is drawn on it.
That is why it is not a checking account. Return is made monthly.
Term Deposits
A term deposit is a deposit that is made for a certain periods of time at the end of the specific period. The customer is allowed to with draw the principle amount .
ACBL Term deposits are of types clear in the deposit scheme in the table). One of them is "Askari" Advantage one month. The rate of return on this account is 9.75%. The term deposit account vary one month to 5 years and the min balance requirement is Rs.5000/- for all following accounts (as clear from Deposit Scheme in the table ).
