A call deposit account is a bank account for investment funds that offers the advantages of both a savings and a checking account. Like a checking account, a … account has no fixed deposit period, provides instant access to funds and allows unlimited withdrawals and deposits. – Investopedia
A bank account in which you can invest money that earns a higher rate of interest than in an ordinary account, and from which you can take money when you need it, if you tell the bank a short time in advance. – Cambridge Dictionary
Here are some of the opportunities of operating a call deposit account, some of which you may not have heard of.
1. Call account earns you interest
A call account earn you interest of up to 5% per annum. Although negotiable and vary from one bank to another depending on your ability to negotiate, the interest on a call account can be higher than what you earn on your saving or current account.
2. No minimum balance on a call deposit account
A call account has no minimum balance unlike a savings account. You can draw your call account to zero and also pay money into the account anytime base on your agreement with your bank.
3. It can be opened and operated by individual and corporate
Call account has no special requirement for opening and operation. Once you have an existing savings or current account with your bank you can request for a call account to be opened for you. The account can be operated by individual and corporate.
4. You can run it like normal savings or current account.
You can make withdrawal and pay money into your call account at will and in your bank. Although banking instruments are not issued on call accounts, you can make transfer from your call account to your normal a current or savings account with your bank and spend your money from there.
5. No penalty on withdrawals on a call deposit account
Unlike fixed deposit account where you lose a percentage of interest due to you if you choose to terminate the investment before maturity. No penalty is charged on call account hence you can call for your money anytime. Again unlike saving account where you loose the interest due to you if you make withdrawal up to 4 times in a month, you will not loose any interest on yor call account no matter how many withdrawals you make in a month.
6. Interest on call account is calculated daily and paid monthly.
Interest on a call account is calculated daily and paid monthly hence no matter the balance in your call account you will continue to earn interest and you are sure of interest payment at the end of the month.
Read also: Current account vs Savings account
It should be noted that with the advent of hybrid bank accounts and special bank accounts with cross functionalities. Most banks have special accounts which combines feautures of a Call account with other account types.