Write a short note on deposits with banks.

Deposits with Banks: Most of the people need only some currency for their daily needs. Rest of the amount is usually kept as deposit in banks. Money which is kept in a bank is safe and it even earns an interest. One can withdraw money from his account as and when required. Since deposit in the bank account can be withdrawn on demand, these deposits are called demand deposits.

One can use a cheque; instead of cash to settle payments. Moreover, one can also buy a demand draft from a bank to make payments.