Significance of Deposit to a Bank

Deposit to a BankWhen a bank can attract depositor at all levels, it will build up available loanable funds on which it could earn interest. If the bank loans increase because of more deposits, then the stockholders will likewise be assured of safe returns on their investment. So, increase in the earnings or income of stockholders by way of dividends from current profits will also encourage them to increase their investments. Increased investments will accrue to the benefit of the customers and the general public through improved banking facilities and services. The bank management will see to it that it does not only retain the good depositors but also attract new ones.

Evidence of the stockholders’ intention to invite depositors and at the same time improve banking services could be gleaned from the shift in the use of purely manual operation to automation. Today, our banks, which grace not only the commercial centers but also the small districts, exhibit these expensive and modern machines in building the most recent structural or architectural designs. Such development alone is indeed a far cry from the bankers of old who kept the money in benches and carved the evidences of debts on tablets made of clay. Generally speaking, all the officials of the bank down to the level entry employees perform the deposit function in the sense that they indirectly contribute to the satisfaction of the customer and the depositor. Modern banks have acquired many new methods to improve service as well as mechanized device to step up the banks’ multifarious activities. The banks employ several tellers to give them maximum service benefits to their customers. The good thing is that banks’ nowadays are automated and was developing so the depositors have easy access to their account. It is really good that they have something like that nowadays.

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