Deposit Products

From Open Risk Manual

Definition

Deposit products consist of a wide variety of financial products whereby clients deliver (deposit) funds (in cash or digitally) with a financial institution and may earn a financial return depending on the deposit type and duration.

Deposit Types

  • Sight deposits are deposits legally redeemable immediately at demand without penalties and restrictions
  • Regulated zero rate deposits for which the interest rate of zero borne on deposits is legally mandated
  • Non-regulated zero rate deposits for which there is no legally binding provision that forces the interest to be equal to zero
  • Term deposits are deposits which are not sight deposits, i.e. deposits with a notification period for withdrawal

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