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What Are The Current Account, Profit And Loss Sharing Account, Profit And Loss Sharing Term Depositin In The Pakistani Banks?

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Hassan Raza answered
Current Account:

Current account is also called demand deposit. Any amount can be withdrawn from this account at any time without any notice. The bank does not get the opportunity to make productive use of these deposits. Therefore, bank does not pay interest on these deposits. But charges nominal commission on these deposits from the customers to meet the different expanses of bank. This type of account is opened, generally by the businessmen. This account can be opened with a minimum of Rs.500. The drawing of cheques is allowed on this account No. pass book is issued on this type of account.

Profit and Loss Sharing Saving Account:

This is the type of deposit account which is usually held by the middle income groups. This type of account can be opened with a minimum of Rs, 100. There is no restriction on maximum amount. This is profit and loss-sharing account thus bank pays profit on this deposit. The customer can withdraw his amount 8 times in a month. Maximum amount of Rs.15000 can be withdrawn at any time during a month for with drawls of larger amounts 7 days notice in writing is required to be given. The drawing of cheques is allowed on this account. So cheque book and pass book is handed over to the customer.

Profit and Loss Sharing Term Deposit:

This type of account can be opened with a minimum amount for Rs. 1000. Bank receives these deposits for some fixed period of time in fixed account. Therefore, these deposits are called time deposits. The bank does not issue cheque book to the customer but issue PLS Term Deposit Receipt (TDK). The bank issues to the depositor a non-transferable TDK. It contains the amount and term of deposit. This is profit and loss sharing account thus bank pays profit on this account. If the customer wants to withdraw before 6 months, in this case, the depositor is not eligible for any profit and loss. After the completion of 6 months but before maturity, In this case, the depositor will be entitled to share profit, if any at the rate of fixed for saving account

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