The types of deposits that are often used are:
1. Demand Deposit
Demand deposits are deposits with banks that can be withdrawn using a bilyet giro or check. Current accounts are commonly used because they are cheap funds, because the interest paid to customers is also relatively low compared to other deposits.
2. Savings Savings (Saving Deposits)
Savings deposits are deposits in banks, whose withdrawals are in accordance with bank requirements. This can be done through Automated Teller Machines (ATM), savings books, receipts and withdrawal slips. The amount of interest on savings depends on the policy of the bank concerned, but is usually higher than a checking account.
3. Time Deposit
Deposit deposits are deposits that have a certain period of time. So, deposit withdrawals can be made according to that time period. Deposit types also vary, for example: time deposits, certificates of deposit and deposits on call.
B. Channeling Funds (Lending)
Other bank services are activities to channel funds. This activity is to sell funds that have been collected from the community. The distribution of funds carried out by banks is carried out by providing loans to the public, known as credit.
The types of credit include:
1. Investment Credit
Investment credit is credit given to customers who invest or invest. For example: credit to build a factory, buy factory equipment such as machinery and others.
2. Consumptive Credit
Consumptive credit is credit that is used for personal purposes. For example housing loans, motor vehicle loans and others.
3. Professional Credit
Professional credit is credit given to special customers, such as lecturers, doctors or lawyers.
4. Working Capital Credit
Working capital loans are loans used by customers for working capital. This type of credit usually only has a short term or no more than 1 (one) year. For example: credit to pay employee salaries, credit to pay for raw materials and other working capital loans.
5. Trade Credit
Trade credit is credit given to traders to develop their trading activities. An example is to buy merchandise from suppliers / agents.
6. Productive Credit
Productive credit is credit in the form of working capital investment or trade. This means that this credit is given to be rolled back so that the credit return is from the profits from the business being financed.