Basic Documents and Transactions Related to Banks Deposits

Types of accounts
Saving account
 These are intended to provide an incentive for the depositor to save money.
 The depositor can make deposits and withdrawals using the form provided by the bank.
 Banks usually pay an interest rate that is higher than a checking account or a current account.
Checking or current account
 Money held under a checking account can be withdrawn through issuance of a check
 Banks usually allows numerous withdrawals and unlimited deposit under this type of account.
 The interest rate for checking account is usually lower as compared to a savings account.
 The account holder or depositor of a checking account is normally provided at the end of the
month a bank statement showing all the deposits made, checks paid by the bank, and the
balance of the account.
 The depositor is given easy access to the funds as compared to a savings account.
Time Deposit Account
 The depositor won’t have access to the money until the period is over. Early withdrawal is
possible, but it comes with a penalty that can exhaust everything you’ve earned. The bank
invests and lends your deposited funds. In return, you’ll be paid a higher interest after the
account’s maturity.
Joint Account
 Joint accounts come in two types: joint “and” and joint “or” accounts.
 A joint “and” account needs the signature of both account holders for withdrawals. On the
other hand, a joint “or” account allows co-owners to withdraw anytime without the other
person’s signature.

Withdrawal Slip
Without a withdrawal slip, the bank will not allow you to get money from your account. The required
information in the withdrawal slip are:
Account Name - the name of the depositor
Account Number – the unique identifier given by the bank for every account maintained
Date of the withdrawal
Type of account - savings or current
Currency
Amount to be withdrawn - the amount that the depositor wishes to withdraw from his account. The
amounts in words and in figures are indicated.
Signature of the Depositor – this is the most important part in the withdrawal slip.
Deposit Slip
Account Name – this is the complete name of the depositor that is reflected in the records of the
bank. If it has a pass book, the account name is indicated on first page inside the passbook.
Account Number – this is a unique identifier of the account maintained by the depositor.
Date of Deposit
Type of Account
Currency
Amount in words and in figures – the amount that the depositor wishes to put into his account. The
amount to be deposited maybe in form of cash or check.
Identify and prepare check (cheque)
Parties involved:
Drawer, the person or entity who makes the check
Payee, the recipient of the money
Drawee, the bank or other financial institution where the cheque can be presented for payment.
Sample bank transaction:

The date column indicates the date the transaction was made. The check number indicates the
details of the check paid by the bank. The transaction code is normally a bank code for the
transactions. The Debit column represents all charges or deduction made by the bank to your
account. The Credit column represents the deposits or additions to your account that was made by
the bank. The Balance column is the running balance after considering the effect of the transaction to
your account.

Cross Check – It is marked to specify an instruction about the way it is to be redeemed. A common
instruction is to specify that it must be deposited directly into an account of the payee. It is usually
done by writing two parallel lines on the upper left portion of the check. A cross check cannot be
encashed over the counter by the payee. It should be deposited to the payees account.

Stale Check – A cheque which a bank will not accept and exchange for money or payment because
it was written more than a certain number of months ago. In the Philippines a check becomes stale if
it exceeds 6 months from the date of the check.