BANKING.

Otago Witness, Issue 1239, 28 August 1875, Page 3

BANKING.

Deposits AT CALL—These are deposits made by the public unconditionally, to be repaid on demand. No interest is allowed on deposits at call Fixed Deposits.- When a person deposits money at a Bank for a fixed period, he receives interest on the same according LI 6 1^ tl \ oi **> fcr which it it nxecl^ llie rulmg rates at present (1874) For 3 months 3 per cen ; ;; ;; ;; \ . » But the rates are" ''constantly being changed. Such deposits must "not be withdrawn until the time for which they were fixed sh.ll have expired. A tanker may, if he thinks lit, refund the money so deposited before it is due, but the depositor in that event generally forfeits his claim to interest, and moreover a banker is not bound to cash a fixed deposit receipt betore maturity, even although the depositor may desire to withdraw his money without interest. Overdrafts.— Making an. advance by overdraft is, as the word implies, permitting a customer to draw out from his current account more than he has paid in. When his account shows a debtor balance against him, it is said to be overdrawn, and the accommodation he is getting is called an overdraft. Overdrafts are either secured or unsecured, but unsecured overdrafts are usually of a temporary character only. A standing overdraft, by which we mean an overdraft which always remains at tho same figure— a dead loan in factwill not be granted by any banker who knows his busiocss. When a man overdraws his account, his banker expects in return that he will at leass keep an operative account, circulatin«the bank's 'notes, &c. Bui; a debtor balance which never undergoes any change is of no earthly use to a banker, and moreover, is a most unsatisfactory and even unsafe kind of advance— Manual »f Banking, published Vif licith and Wilkie.