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Deposit Accounts

book, pass and account

DEPOSIT ACCOUNTS. When moiler is left on deposit with a hank, the depositor /nay receive the bank's deposit receipt for it, but in some districts customers prefer to have a passbook, instead of a receipt. as being less likely to get lost, it being under stood that the rate of interest they are to receive v i 11 be the same as is allowed upon the ordinary deposit receipts. The pass book would not necessarily be required to be produced each time any money is repaid. unless that was the arrangement between the bank and its customer.

On an account of this kind cheques arc drawn only when the customer wishes to withdraw part of the money, because if the account becomes an operating one, it would no longer be regarded as a deposit account but as an ordinary current account, and be subject to the usual rates fur current accounts.

Some banks supply a, special form of pass book for deposit accounts where a deposit receipt is not asked tor. the book being

practically the same as that issued by the Post (Mice Savings Bank. Each item in the book is initialled by the cashier receiving the money or making a payment, and the book must be produced every time that a transaction takes place. A pass book of this kind usually carries, in bola type, some such heading as the following," Moneys in this account bear interest and are subject to days' notice when withdrawn. Interest to cease when notice is given. Nu payment will be made except on production of this book." (The notice referred to is not always insisted upon.) Deposit pass books generally bear a running number, of which a register is kept giving the name of the depositor, the number of the book and the date when issued. As to the Bank ()rder scheme in connection with small deposits. sec BANK I )12DER. (Sue DEPOSIT RECEIPT, PASS