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Banking

Bank - A financial institution where money is deposited by the public for future use. Bank also accepts money from public.

The types of deposites are :

1. Saving Bank account
2. Current Bank Account
3. Fixed deposits
4. Recurring deposits

We shall deal with saving bank account and recurring deposits.

Saving Bank Account

This account is opened in a bank with minimum amount of Rs.500 or Rs.1000 (for cheque facility).

Calculation of interest in a saving bank account:-

1. Minimum balance between 10th and last day of each month is written.
2. Minimum balance is converted as a multiple of Rs.10. For example balance between Rs.510 to 515 is rounded to Rs.510 and Rs.15.01 to Rs.520 to Rs.320
3. All the minimum balance is added.
4. The simple interest for one month is calculated on the given rate of interest.
5. No interest is paid for the month if minimum balance is Rs.5 or less.
6. The interest of B less than rupee 1 (one) is neglected.
7. No interest is paid for the month in which account is closed.