Definition (1):
Thrift deposits are the accounts whose principal purpose is to provide an interest-bearing outlet for customer savings – that is, a place for the customer to store liquid purchasing power at interest until needed.
Definition (2):
“Thrift Deposit is a compulsory saving and it is recovered from the monthly salary of a member according to cadre wise.” Interests on thrifts are calculated annually and are paid by Real-time Gross Settlement (RTGS)/ National Electronic Fund Transfer (NEFT) to the concerned members. An example of this deposit is shown in the table below:
|
Class I &Class II |
Rs.2000/- |
|
Class III |
Rs.1500/- |
|
Class IV |
Rs.1000/- |
Normally, 100% of this deposit is included in the consumer or retail market, while generally, only 20% of this deposit is attributed to the commercial or wholesale market due to the thrifts’ limited ability to involve in commercial lending.
Use of the term in Sentences:
- The professor is discussing different types of deposits along with thrift deposits in the financial institutions and bank management class.
- The student could not answer what is the difference between thrifts and thrift deposits.