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Shvoong Home>Business & Finance>Investing>Regular Income-Banks May Introduce Deposit Schemes Review

Regular Income-Banks May Introduce Deposit Schemes

Article Review   by:madugundukrishna     Original Author: madugunduk
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One such scheme may be the door-to-door collection of small savings in the form of deposits. There are countless savers in the countryside who save a party sum but who do not have enough time to go bank office to deposit the money. The savings of such persons may be garnered if a bank appoints representatives for collection.

This arrangement would undoubtedly inculcate the habit of thrift among the people. The agents’ may be given a commission on the basis of the amount collected by them.


Investment services
By offering investment services to depositors a bank may attract new deposits. A large number of savers, particularly I the middle-income group, are willing to investment their saving surpluses in profitable securities; but they abstain from doing so mainly because of complexity of investment affairs ad their limited knowledge of them.

If a bank promises to collect profitable and safe securities for the depositors, collect interest on these securities and manage their disposal, when required, a good umber of savers would be tempted to put their idle funds in the bank.

Banks may introduce deposit schemes which would suit the people and which would provide for the collection of deposits and their repayment. Farmers for example, have after the harvests, a substantial amount; if these savings are not mobilized, they will find their way into unproductive channels.

A bank may devise a scheme by which farmers’ savings are collected immediately after harvest and by which they would have the freedom to withdraw their deposits during the year, as ad when needed. This scheme would ensure for the depositors the triple benefits of certainty of regular interest income, the safety of funds ad the withdrawal facility. Farmers, if educated about the merits of this scheme, may be tempted to deposit their savings in the bank.

Published: April 14, 2012   
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