GROUP 5: INSTRUCTOR:

Diaz, Quenie Marie B. Ms. Zinnia Ibieza

Edang, Rhogen Dacel
Cañelas, Jennifer
Odela, Trina

THE DEPOSIT FUNCTION

Deposits constitute the lifeblood of a banking institution. It is for this reason
that a bank must have substantial amount of deposits to prove its worth in the
financial system. A bank will not succeed in its task of "dealing in credit" without
deposits or very little of it. Its success, therefore, will depend largely on its ability to
outdo other banks in attracting deposits.

Ways of Enticing Depositors

There are many ways that banks employ to entice depositors into bringing their
excess funds for safekeeping. They make their building imposing enough to conjure
the idea of financial strength, hence, a veritable attraction to depositors. The banks,
therefore, sink a great portion of their own capital in imposing buildings and fixtures
in trying to invite depositors. Other banks offer insurance coverage for their
depositors as a means of competing for deposits. Others adopt strategies which
would likewise attain the goal of alluring the depositor. For children's pleasures, they
give temporary piggy banks made of hard paper with attractive and appealing
characters promoting the habit of thrift.
The developments in communications and technology also enhance the banks'
ability to attract customers. Modern banking offers convenience to depositors
through varied products and services done electronically. The computers, coupled
with high-tech electronic devices, are now utilized in banking transactions called e-
banking. E-banking is prevalent in large banking institutions located in metropolitan
areas, key cities, and municipalities. Thus, depositors have the option of transacting
business even if they are not physically present in the bank/s where they entrust
their deposits. The depositors can now access their funds through thousands of
Automated Tellering Machines (ATMs) located nationwide. They can also pay bills,
transfer funds, inquire balances, reorder checks, and shop cashless through ATMs,
land phones, mobile phones, and the internet.
More and more banks are planning to engage in e-banking, except those small
banks in the remote areas which do not have the financial capacity for
modernization. As such, every e-banker has to employ strategically planned use of
modern technology to jostle in itself at the topmost of competition. Every single
manner of outdoing one another to get the deposits certainly underscores the
importance of this particular phase of banking business.

Deposits Defined
Under the concept of bank credit, deposits are represented by money or
representative money entrusted to banks for safekeeping. The term "deposit,"
however, may also partake of other meanings. The keeping of valuables such as
jewelry and important documents could likewise mean deposits in a sense.
To a bank, however, deposits are money borrowed and makes the bank a
debtor. The depositor, on the other hand, can claim the deposits at his pleasure
and is therefore the creditor. Hence, the bank can lend the deposits while the
depositor does not as yet claim these and earn interest on the loans granted. Since
deposits are liabilities of the bank, failure on its part to meet the depositor's
demand will give the depositor a right of recourse against the bank.
Another definition is contained in Section 58 of the New Central Bank Law
of 2000 (R.A. 7653) which states that the term "demand deposits" means "all
those liabilities of the Bangko Sentral and of other banks which are denominated in
Philippine currency and are subject to payment in legal tender upon demand by the
presentation of checks."

Types of Deposits
Deposits are usually classified according to the method of withdrawal and
according to the way they are created. Such delineations are simply established to
set apart one type from another in some instances.
According to the method of withdrawal, deposits may either be demand or
time. The demand deposits are those which are withdrawn upon the presentation
of

checks during banking hours. However, even when banks are closed for business,

claims against such deposits may be made by the depositor through his checking
account.
Since the bank must stand ready at all times to meet the depositor's demand,
the bank cannot lend these deposits for long periods of time. Hence, while these
represent sizable amounts, the bank stands to profit less from them if the reserves
against them should be one hundred percent. But due to the partial reserve system,
demand deposits are significant in the bank's expansion of credit. This type of
deposit does not receive interest in modern times. The paying of interest led to
unethical competitive practices in the past and, thus, the regulatory agencies saw fit
to enjoin banks to stop the payment of interest on demand deposits. So that now,
banks vie for the bigger deposits through other means.
Time deposits are those which can only be withdrawn after a certain period of
time or at a designated maturity. The depositors place their excess funds as time
deposits for varied purposes such as to build up a fund for building their homes, for
Christmas shopping, and such other postponed consumption purposes. For this
reason, this type of deposit is further subdivided into the following:
1. Time certificate of deposit. This is evidenced by a certificate to the effect that
the deposit can only be withdrawn at maturity or after due notice of withdrawal,
usually thirty days, and upon presentation and surrender of the instrument. Should
the deposit be withdrawn before maturity due to an emergency, interest accruing on
the deposit will be forfeited..
2. Special time deposits. This type is evidenced by a written contract to the effect
that neither all nor part may be withdrawn before the maturity date or at least upon
due notice of at least thirty days.
3. Savings deposit. Savings deposits are evidenced by a passbook and can be
withdrawn only upon due notice of at least thirty days or depending upon the
individual bank's policy. In the modern banking system, however, these deposits
may be withdrawn on demand provided the bank is in a position to meet the
demand of the depositor. It does not mean, therefore, that the bank cannot set up
the defense of a written notice of withdrawal should the occasion arise for doing so.
 All
time
deposits receive interest at varying rates. For example, the certificate of deposit may
be given a higher rate than that of savings. This is due to the fact that the former is
kept with the bank for a longer period which will also allow its investment for long
term commitments. But, in order to avoid cutthroat competition between banks, the
Bangko Sentral ng Pilipinas sets the minimum and maximum

percentages which banks can offer to customers. Bank management then

implements the requirements as it sees fit. According to the way the deposit is
created, they are classified as primary (or direct) and derivative deposits.
Direct or primary deposits are those which are made "over the counter"
when the depositor himself brings his money and/or checks and other near cash
items to the bank and hands them to the teller. Sometimes, the depositor may send
his representative to deposit for him. For e-bankers, depositors can deposit through
ATMs after they have registered personally at the bank.
Derivative deposits on the other hand, are created the proceeds of loans. In
this instance, the borrower enters into an arrangement that the bank places the loan
proceed under a current account from which he can draw checks eventually. The
direct deposits simply reflect a change in form, from currency to and do not,
therefore, increase the money in circulation. The derivative deposits, on the other
hand, increase the volume of money because they represent new money created by
the bank out of the proceeds of the loans. The multiple expansion of credit is also
enhanced by more derivative deposits. Hence, the line drawn between these types
of deposits become doubly significant in economic analysis. The analysis of
transactions as reflected in the balance sheet may also serve to underscore the
effect of derivative deposits on the banking business and the economic situation.

Kinds of Depositors
If there are distinctions among deposits, there are also different kinds of
depositors. The deposits may come from either individuals or businesses and
from the government and its instrumentalities and political subdivisions.
When funds are deposited by individuals or businesses, these are known as
individual deposits or business accounts. If the government is the depositor,
they are termed government deposits.
 The

banks may also deposit money with other banks on a reciprocal basis. These are
classified as interbank deposits. The banks are known as correspondents. Such
deposits provide for the exchange of funds between banks for varied purposes..
The deposits made by these depositors may be either demand or time in
conformity with the method of withdrawal and according to the reason of the

depositor in keeping his funds in the bank. They may also consist of primary or
direct deposits or derived from proceeds of loans.

Motives of Depositors
When depositors entrust their money to the banks, each of them may have
one of more motives for doing so. Such motives may either be for safety, for
convenience, for earnings or income, and for accommodation.
1. Safety. The depositors place their excess funds in the bank because they
that modern banks have fireproof and burglarproof safes and vaults to keep
money in. Compared to keeping the money at home, the bank is considered
to be a safer place. Besides, bank funds are duly protected by proper
safeguards and imposed by the state. So that either time or demand deposits
will be relatively safe.
2. Convenience. When the depositor is prompted by the conveniences offered
through depositing, he opens a current account which is serviced by the use
of checks. Thus, he could pay his bills in exact amounts, he could carry large
amounts of money safely and portably, he could use his cancelled check as a
receipt, and he could issue a stop-payment order if he draws the check
erroneously or loses the same. Besides the conveniences he enjoys, he also
acquires a certain degree of safety.
3. Earnings or Income. A person places his money as time deposits if he is
after earnings or income. Only time deposits of varied types earn interest.
Service charges are also nominal if he has to pay at all.
4. Accommodation. Businessmen deposit their money because of the special
favors they want from banks. Lines of credit may be accorded to them upon
 proper arrangements. They could also deal in trade by having the bank as
guarantor through the issuance of letters of credit.

Significance of Deposits to a Bank

When a bank can attract depositors 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 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 operations to automation. Today, our banks, which grace not only the
commercial centers but also small districts, these expensive and modern machines in
buildings of the most recent structural or architectural designs.

The Deposit Function

Generally speaking, all the officials of the bank down to the entry-level
employee perform the deposit function in the sense that they indirectly contribute to
the satisfaction of the customer-depositor. Directly, however, the teller system
employed by banks perform the operations connected with the receipt of deposits
and other allied activities related to it. The bank, if relatively small sized, may
employ a single teller system where one teller performs both the receiving of
deposits and the paying out of checks and other instrument exchanged for cash.
But, as a bank increases in size and volume of operations, individual tellers who
perform separate tasks might be more practical and economical due to expeditious
performance and divided work. Each of the tellers assigned to specific jobs shall,
therefore, have their own responsibilities and duties. Thus, pinpointing of erroneous
performance could be easily done.

Modern banks have acquired many new methods to improve service as well as
mechanized devices to step up the bank's multifarious activities. For one thing,
banks nowadays employ several tellers in order to give maximum service benefits to
their customers. Also, teller functions are done through electronic devices such as
ATMs, phones, mobile phones, and the internet. As to the large e-bankers,
"Receiving and Paying" tellers do not exist anymore as the depositors can
transact any business with anyone among those who sit in the tellers' cages. This is
so because of the computer soft wares which can track down several transactions at
the same time.

To a bank, the paying teller has a greater amount of responsibility because his
negligence may lead to losses on the bank's part. However, the teller who performs
the first step in the deposit function is the receiving teller, for it is he who accepts
deposits for and in behalf of the bank.

The Receiving Teller

The receiving teller receives and verifies deposit items and deposit slip, gives
proper receipt for the deposit made, distributes the items deposited, and finally
checks and proves the day's work. A brief description of each phase of his activities
may be gleaned from the succeeding paragraphs.
When a customer-depositor approaches the receiving teller's window, he hands
the teller a duly accomplished deposit slip indicating therein the cash and other
instruments representing cash in some detail. Upon receipt, the teller examines the
deposit slip to ascertain, among other things, whether the amount representing cash
tallies with the physical count of currency. He also sees to it that a detailed
description of the credit instruments are in order, such as the number, the bank on
which drawn (in case of checks or drafts), and the amount. Then he segregates the
currency into the different denominations in the compartments for this purpose in
the drawer. He examines closely the credit instruments for any defects and if he
finds

none, marks them "non-negotiable."

Having thus examined and satisfied with the verification, he places the
duplicate of the deposit ticket into (or the passbook) before giving it to the
depositor. For a depositor with an ATM account who deposits over-the-counter, the
teller only gives the machine-validated receipts.

At the end of the day, that is after banking hours, the teller sorts out all the
items deposited comprising of cash, checks, and other credit instruments ready for
distribution to the proper departments. This will become very much easier since in
the first step the teller shall have segregated the items already.

As the teller performs the other functions, from time to time he fills in the proof
sheet indicating the deposits received and at the end of the day, he merely goes
over the same to see if he made any error. If he discovers any erroneous entry, he
proceeds to look for the mistake and then reflects the necessary correction.

In the receipt of the items deposited, the receiving teller exercises due care and
diligence in examining the cash and credit instruments so that he may be relieved of
the responsibilities attached to his duties. These responsibilities are in relation to the
currency or the credit instruments. In regard to the currency, the teller is responsible
for:

1. Errors in counting the money deposited. In order to be sure of his count, the
receiving teller does it twice and sees to it that the amount on the deposit ticket
tallies with the actual count of the currency. Otherwise, he may either fall short or
incur an excess at the end of the day. In either case, he will have to balance the
proof sheets. If he falls short, he is responsible for the deficiency. If he has an
excess, he should be able to explain the excess.

2. Presence of mutilated or counterfeit money. By experience, a teller can say

which is counterfeit money or not, simply by the "feel" of the paper currency or the
tingling of the metal money. Nonetheless, he should also be careful to watch out for
advertisements or have a sample on hand to be able to detect counterfeit bills.
According to the provisions on the means of payment, the mutilated currency is that
which cannot be recognized under the law. The demonetized currency or coins come
under this category.

Should the receiving teller fail to detect either counterfeit currency or mutilated
money, the bank may have to suffer losses through negligence. The bank will, in
turn, charge the teller for irresponsibility or negligence in the performance of his
functions.

For the credit instruments that the teller receives for deposit, he has to be
careful in order to avoid responsibilities in connection with:

1. Postdated checks. Checks which are dated after the date of deposit are known
as post-dated checks. The teller should not receive such checks for deposit as he
cannot be sure whether they shall be honored. If he overlooks this, the bank m
account for such mistake. may

2. Stale checks. Stale checks are those which are dated very much earlier, say
about a month, from the date of deposit. In conformity with the Negotiable
Instrument Law, checks should be promptly presented for payment or for clearing

within reasonable period of time. Hence, if the teller notices such a check he should
tell the depositor to refer the check or instrument to the drawer. Otherwise, the
bank might become liable for it. Because in some cases, the drawer may be relieved
of the liability behind the issuance of stale checks, if his interest is also jeopardized

3. Material alterations. Material alterations may be on the date, the amount (that
is, the amount in words do not tally with the amount in figures), the payee. The
teller must see to it that any changes made on the face of the instruments is
properly initialed by the drawer. If there are any erasures, it might be better to have
the instruments completely replaced instead.

4. Wrongly endorsed instruments. There are proper ways of making

endorsements so that no question as to liability may arise. In case the instrument is
not endorsed according to the name appearing on its face, the teller should require
the depositor to correct the wrong endorsement.
For
both
currency and credit instruments, the teller is responsible for:

1. Carelessness in adding deposit slips. This refers to the proof sheets rather
than the individual deposit slips. It may be that the teller is not very careful in
adding so that the amount of deposits may not tally with the actual currency and
credit instruments. Again, any deficiency or excess in this case must be explained by
the

2. Carelessness in designating the account to be credited. It may happen

that there are several depositors with identical names. The teller must, therefore,
see to it that the right person is duly credited for the deposit. Careless crediting of
proper accounts may eventually lead to bank embarrassment or even loss. This
particular aspect is minimized today by the use of account numbers. Hence, the
teller should make it a point to check the account number. On the whole, the
receiving teller must be very careful and prudent in the exercise of his functions in
order to minimize embarrassment or loss to his bank as well as to insure his trusted
position as a bank representative in the deposit function.

Deposit Slips (Tickets) and Deposit Items

The deposit function entails the distribution of the deposit slips and the deposit
items. Such function is performed by the receiving teller. The distribution is handled
physically as follows:

1. Deposit Slips. Deposit slips are the forms filled in by the depositor when he
makes a deposit. The receiving teller sorts the deposit slips in groups or batches
according to the subdivision of the depositors' individual ledgers. Then the batches
are sent to the corresponding bookkeepers.

2. Deposit Items. Deposit items comprise of cash and credit instruments or other
items and are distributed as follows:
a. The

currency composed of notes and coins will be sent to the cashier.

b. Checks drawn on the bank where the teller is employed are sent to the
bookkeeper.

c. Checks drawn on other banks are sent to the distributing section or transit
department for proper disposal. The clearing house items, for example, are sorted
and later sent to the clearing house.

d. Drafts and other items to be acted upon are sent to the corresponding
departments such as the foreign, the loans and discount, and others.

For bookkeeping and accounting procedures, the deposit slips which bear the
monetary value of the deposits, shall be the basis of credit entries into the different
depositors' subsidiary ledgers. The deposit liabilities will be the total of all these as
appearing in the balance sheet. In regard to the deposit items, the proper reflection
in the books of accounts of the bank shall be debit entries. These in turn will affect
the cash and other cash items accounts.

The Paying Teller

The paying teller is sometimes alluded to as the first teller. However, this
rather seems to be a misnomer after we have shown the fact that the receiving
teller logically fills this frontal position. Nonetheless, it is an accepted fact that the

degree of responsibility of the paying teller is greater than that of the receiving
teller. Hence, referring to him as the first teller may, thus, have some justification
after all.

The paying teller is the one who pays out cash in exchange for checks and other
instruments necessitating encashment. Thus, his detailed functions will include the
counting and verification of the cash received from the cashier, the keeping and
safeguarding of the supply of cash, the paying or cashing of checks presented by
customers, the distribution of the items exchanged for cash to the proper
departments of the bank, and proving the day work. A short description of the
functions might give us the proper perspective with regard to what a paying teller
does in
the
performance of his duties. Early in the morning, just before the bank opens its doors
for business for the day the paying teller will receive from the cashier the necessary
amount of cash, which he determines, through experience, to be used for the
normal requirements. The currency he receives will also be of different
denominations as gauged from past performance to meet customers' needs. He may
have had some excess from the previous day's operations and so he adds this to the
money released to him the next day. He sees to it that such money is kept well and
that the supply is enough to meet the normal needs for the day.
As checks or other items for encashment are presented to him, he first
examines them to avoid any liability on the part of the bank which might be caused
by his negligence. If everything is in order, he renders the payment and after which
he stamps the instruments accordingly to indicate discharge of the same. Just like
the receiving teller, he also sorts out the items exchanged for cash to facilitate their
distribution at the end of the day.
Lastly, he proves that all his work is in order for the day. He makes an actual
count of the cash left to ascertain if it tallies with his proof sheet. He may also have
an excess or deficiency. Hence, he should look for the error and make the necessary
correction.
In order that he may be relieved of the responsibilities attached to his duties, he
examines the items exchanged for cash in relation to:
a. The date of the check. He makes sure that the check is neither post-dated
nor stale. If the check is post-dated, he must not pay; if stale, he should
likewise not pay but request the person presenting it to refer the same to the

drawer of the check. Otherwise, he may put his bank in a predicament, perhaps
even unnecessary liability.
b. Wrong endorsement. The paying teller, as is true with the receiving teller,
must be sure that the endorsement is correctly effected at the back of the
instrument. Hence, liability of endorsers will be pinpointed rather than
obscured.
c. Material alteration. As mentioned already, this will refer to erasures or
changes on the date, the payee, or the amount in words and figures. The
paying teller must exercise greater care in these alterations than the receiving
 teller. For once he pays, it will be hard to retrieve what has been paid. Hence,
negligence will again jeopardize the bank's interest.
d. Forgery. This aspect is the concern of the paying teller as he has access to
the depositor's specimen signature before payment. Hence, his bank might
suffer the loss in some instances if the paying teller does not exercise caution
and care in determining whether the check is forged either as to the signature
or other parts of the check. A payee's name, for example, could also be
changed through sheer ingenuity.
e. Crossed checks. Crossed checks are of two kinds, either crossed specially or
generally. The paying teller should scrutinize the check to determine the
extent of the bank's commitment on such check. Such checks are meant for
deposit rather than for encashment, in most cases.
f. Stop-payment order. When a check is lost or for any other reason the
owner wishes to withhold its payment, the drawer requests the bank to stop
its payment. The bank provides a signal to indicate the "Stop Payment
Order." Such will be kept among the depositor's ledgers, so that the paying
teller could determine beforehand whether the drawer wishes to stop
payment on the check. Hence, the paying teller should heed the order.
g. Insufficient funds. The paying teller must also determine whether or not
the drawer of the check has sufficient funds to cover the same. Otherwise, it
may cause loss on the part of the bank. Sometimes, depositors may not keep
an accurate record, so they may issue checks in excess of their deposits. It
may also work out the other way around. It may be that deposits made were
not properly accounted for. Hence, care must again be taken in this regard.
In any case, it might bring embarrassment to the depositor or to the bank.
h. Erroneous payment. A paying teller should count the money to be paid at
least twice. For he may overpay or underpay.

i. Supply of cash. In order to be always ready with cash, a paying teller,

through constantly doing the same work, should be in a position to know how
much he gets from the cashier to meet requirements. Hence, one is guided by
days requiring "heavy withdrawals" such as paydays, nearing holidays, bank
holidays, and similar occurrences. For any indication the bank runs out of
cash in the presence of customers could lead to loss of good standing and
loss of confidence.
 Other Tellers
As the bank grows in size and volume of business, it will also have other tellers
with specific functions aside from the receiving and paying tellers. However, these
tellers will also have similar functions with only a few deviations. For example, a mail
teller will take care of deposits by mail. He, therefore, also goes through the
operations of a receiving teller. Or a teller is assigned to do nothing but change big
bills into smaller denominations or vice versa. Such teller also does the work, sub-
tellers are assigned, therefore, either to the receiving teller or to the paying teller.
Other personnel are also employed to facilitate the work of the tellers.

How to Open a Bank Account

In discussing this topic, it must be borne in mind that there are different kinds
of deposits, and therefore their administration will also entail different kinds of bank
account It is thus deemed wise in this respect to describe how a current account is
opened by depositor and then to show the deviations in the case of savings
accounts. Furthermore there will also arise some differences between individuals and
a business of different form in the matter of opening their bank accounts.
When a person wishes to put his money in a bank in the form of demand
deposits, he follows the procedure below in opening his account:
The prospective depositor approaches the counter marked "New Current
Accounts" and the officer behind the counter will break the ice by saying: "May I
help you?" Then the customer indicates his intention of opening a checking account.
The officer then inquires of the prospective depositor if the latter is known to the
bank officials, or whether he could give as reference any person of good moral
character and credit standing in the community or within the bank. The prospective

depositor should also present valid IDs. Upon satisfying the requirement, the
applicant is then given the necessary forms to fill out.
The forms will consist of the information card wherein questions about his
lineage, age, civil status, income, and other pertinent matters should be truthfully
answered. The specimen signature card is another form where he signs his name
two or three times. Sometimes, however, the information card is also the "specimen
signature card." The applicant is likewise given the first ledger sheet where he will
write the
account number assigned to him and again sign the same several times.
After he has signed all these, the officer examines the same. The depositor is
then given the deposit slip where he will indicate the currency and credit instruments
to be deposited in his name. He hands them over to the officer who approves the
duly filled out forms.
The necessary steps in the receipt of deposits by the receiving teller are then
accomplished either by the officer or by a teller assigned for this purpose. After
which the depositor is given the receipt for his deposit and a booklet of checks. He
pays for the internal revenue stamp on the checks at P2.95 each or a booklet of fifty
checks for P147.50. On the form to be filled our for replenishing his checkbook, the
teller writes the depositor's name and number. Each check will also be numbered in
conformity with the depositor's account number.
The depositor now technically becomes the bank's creditor and he may,"
pleasure, start writing out checks against his deposits.
In case of a savings account, practically the same procedure is followed, except
that instead of a checkbook, the depositor is given a passbook where the amount of
deposits and withdrawals are to be entered and properly initialed by the teller. A
receipt for the deposit, therefore, becomes unnecessary. When the depositor wishes
to withdraw from his account, he simply fills out in a withdrawal slip. If the depositor
cannot go to the bank himself, he fills out the withdrawal slip and names his
representative. The authorized signature of the depositor and that of the
representative will then be examined before the paying teller hands the money to
the representative. As usual, the amount is entered in the passbook and is properly
initialed.
In case of a savings account with ATM card, the same procedure with savings
account is also followed, except that instead of a passbook, the depositor is given a
receipt for his initial deposit. After two weeks, he returns to the bank to claim his
card bearing his name and card number on the front. The ATM card is used in

various banking transactions such as deposit, withdrawal, account balance inquiry.

and bills payment. The depositor can access his account 24 hours a day through the
bank's ATMs located anywhere in the country. If the bank is a member of banks
consortium like BancNet or Megalink, its depositor can access his account in any
ATMs of the consortium which are located nationwide.
 As a

matter of marketing strategy, some banks offer to depositors a combination of

current and savings with ATM-operated accounts. In this case, funds can be
withdrawn either through check or through ATM.
In case of current and savings accounts, partnerships should present the
articles of co-partnership and indicate who is authorized to sign checks or withdraw
deposits. For corporations, the articles of incorporation and by-laws are usually
required to be presented, together with the board resolution indicating the
officer/officers who may sign checks and also withdrawal slips (for savings
accounts).
For accounts opened under joint names, both parties must sign the check in
case of current accounts or the withdrawal slip in case of savings accounts. A joint
account would appear as Jose and Maria Cruz. However, if the account appears as
"Jose and/or Maria Cruz," then either one of the depositors may sign the check (for
current accounts) or the withdrawal slip (for savings accounts).
In case the account is opened for and in the name of a minor, the guardian
signs for and in behalf of the minor.
Anybody can make a deposit either in a current account or a savings account
for and in the name of the depositor. Anyone can also present a check against a
current account of an individual, partnership, or corporation. But in case of savings
accounts, the depositor himself must personally withdraw or he may name his
representative through a written withdrawal slip, and by presenting the passbook.
After the initial steps in opening the accounts, as they become regular
depositors, the persons or entities will subsequently deal only with the receiving and
paying tellers, as the case may be, and no longer with the officer handling "New
Accounts."
It will also form part of the teller's functions to advise the depositors where they
need help and guidance as in filling out deposit slips in exchanging foreign currency,
as well as in facilitating banking transactions which will otherwise get on the nerves
of impatient customers.

Current versus Savings Accounts

There are some significant differences which the tellers must be aware of and
which the depositor must know in order to keep his account with the bank. Such
distinctions will be in the initial deposit, the service fees, the penalty for issuance of
bouncing checks the age of depositors, the minimum balances for purposes of
interest payments or imposition of service charges, and others.