Source:Unsplash

A commercial bank is a financial institution set up for keeping and lending money to people owned by individuals organisations or government for the main purpose of making profits . Today there are many commercial Banks in so many places .

Types of commercial Bank accounts

Fixed deposit account

These are deposits which can be withdrawn only after the expiration of certain period of time (3,5,10 years). Here, banks pay their customers a high rate of interest depending on the amount and period of time. In times of urgent need for money the plan allows premature closure of fixed deposits by paying interest at reduced rates. Depositors of fixed deposit can apply for loan against fixed deposit. The fixed deposit receipts cannot be transferred to other persons.

Recurring Deposit Account

Here, the customer opens an accounts and deposit a certain sum of money every month. After a certain period (1,3 or five years), the accumulated amount along with interest is paid to the customer. The interest is generally on accumulative basis.
This system is for regular Savers of money.

Cash Certificate Account

These are issued to the public for a longer period of time. It attracts customer because its maturity value is in multiples of the sum invested. It is a very high yielding investment for those who can keep money for a long time. It is also a very useful account for meeting future financial requirements like marriage, children's education.

Savings Deposit Account

These are deposits held by individuals and non-profit institutions. The rate of interest paid on saving deposit is lower than that of time deposits. The holders of this account get liquidity advantage and the account is operated with ease without the use of cheques. It aims at encouraging people to farm savings habit. It is operated with the use of deposit and withdrawal vouchers. The amount used in opening this account and the percentage of Interest payable vary from Bank to bank.

This account which is also common among students and undergraduates has a minimum deposit for starters and withdrawal can only be made twice a month. When the withdrawal is more than twice a month it means that there will be no interest for that month.

Current Account Deposits.

Source:Unsplash
This is a non interest-bearing bank account which allows the account holder to operate the account with the use of cheques. The holder also paid a commission on turnover to the bank. This type of account is opened by business man who have a high number of Regular transaction with the bank. Account also can be deposited and withdrawn any time without giving the bank notice.

And overdraft, also is given to the holder of this account only. An overdraft is an arrangement with the banker whereby the customer is allowed to draw money over and above the balance in his or her account. It is a short-term temporary fund facility from bank and the bank charges interest over the amount withdrawn.

Cash Credit

This is a form of working capital Credit given to the business firms. It is an arrangement whereby a customer opens an account with a sanctioned amount which is credited into the account full stop and he or she operates the accounts within the sanction limit. It is used to ensure security of goods and person.

Securitization of loans

This is a process of transferring credit risk from the bank card to the buyer of securitized loans. It is a process of changing and you liquid assets into a liquid assets. Under this method banks convert their business loans into a security or a document and sell it to some investment or fund manager for cash to enhance their liquidity position.

In conclusion, commercial banks are made of deposit money banks with functions as acceptance of deposits collection of cheques, dividends and interest; prevention of safety locker facility and provision of trade information.

Reference

https://corporatefinanceinstitute.com/resources/knowledge/finance/commercial-bank/

https://www.investopedia.com/terms/c/commercialbank.asp

https://www.myloancare.in/fixed-deposit/loan-against-fd/