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Current and SB accounts CASA

Bank Deposit

Demand Deposit:- Money Deposited in banks to be paid on demand , such as Saving Bank Deposits and Current Deposits.

Time Deposit :- Time Deposits are deposits with a maturity period. Time Deposits are basically term deposits , Like FD (Fixed Deposit ) , CD (Cumulative Deposite), and RD ( Reccuring Deposit).



CASA  stands for Current Account and Savings Account.

CASA Deposit means deposit under these two categories in banks.

CASA is law cost deposit because banks do not usually give any interests on current account deposits and the interest on saving accounts is usually very low

CASA ratio of a bank is the ratio of deposits in current and saving accounts to total deposits. A higher CASA ratio indicates a lower cost of funds.

It is generally understood that a higher CASA ratio leads to higher net interest margin.

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