Organization can open a current account in its name in order to carry out day-to-day banking transactions. It is a non-interest bearing account with no limit on withdrawal facility.
Organization having excess amount in their current account can instruct the bank to open a call account in its name. The interest rate and the amount on call deposit are predetermined. The interest rate on call account is highly dependent upon money market rate.
INSTITUTIONAL FIXED DEPOSIT
Organizations can open fixed deposit if they want high return on their investment. Credit facility is also available against corporate fixed deposit, however, board minutes is mandatory in such case.