Banking Let’s understand various types of Bank Deposits in brief: Savings Account (Demand Deposit) - Savings accounts are handy for short-term savings. You can deposit money into a savings account at any bank. This will keep your savings safe and pay a nominal interest. You can withdraw your money whenever you need it. Recurring Deposits (Time Deposit) - Recurring deposits popularly known as RD’s are good if you wish to create a fund by periodically saving for any special occasions such as buying a car. These are suitable for people who do not have large amount of savings but are ready to save a small amount every month. No withdrawals are allowed before maturity. Fixed Deposits (Time Deposit) - Commonly known as FD, this is where you can deposit a sum for a fixed period. The depositor is given a fixed deposit receipt; which depositor has to produce at the time of maturity. Withdrawals are not allowed, however, in case of need, the depositor can ask for closing the fixed deposit account by paying a penalty. Deposit Insurance The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures all deposits such as savings, fixed, current, recurring, etc. Each depositor in a bank is insured up to a maximum of Rs.5,00,000 for both principal and interest amount held by the depositor. Digital payment methods Digital payments are those payments in which the payer and the payee both use electronic modes to send and receive money.