CBSE Class 10 Answered

People deposit their savings in the bank. They can withdraw their money, whenever it is required. Because the deposits in the bank account can be withdrawn on demand, these deposits are called demand deposits. Benefits of deposits with the banks are as listed below:

1. Apart from money being safely kept in the banks, people are also paid interest on the amount of money deposited in their bank account.

2. Deposits also act as direct money in case of cheque payments. Cheque against the deposits settles payments without the use of direct cash.