The payment slip expires

What are the advantages of a payment slip over a deposit account?

As far as I know, someone who wants to deposit money at a bank can choose between a deposit account and a deposit slip. With a deposit account, a person is assigned an account tied to their name and only the person or person to whom the person delegates the right can withdraw funds. With a deposit slip, there is no account, just a document stating that the person bringing the paper can withdraw money from the bank and is entitled to the accrued interest.

The account apparently offers more protection. If the account holder does not attempt to withdraw funds, that money cannot be stolen. If all of the owner's belongings are lost in a fire, it doesn't matter - the account details are managed by the bank. So in the event of a reasonable accident, money is more or less safe.

A certificate looks less secure. It's like paper money with interest. Anyone can steal it. If there is a fire or is lost or whatever, the bank can refuse to withdraw the money.

What are reasonable advantages of a deposit slip over a deposit account and in what situations do these benefits outweigh the problems of deposit slip?

George Marian

The consumer who opens a CD can receive a passbook or paper certificate. It is common these days for a CD to simply consist of a book entry and an article that appears on the consumer's regular bank statements. That is, there is usually no such thing as a "certificate" as such.

In general, CDs should offer a higher level of interest over the life of that CD, which usually does not vary. In this way, it offers a little more security when it comes to returns. But they also block your money for a certain period of time.

Stephen Cleary

Another option is interest-bearing checking accounts, especially in today's quirky US economy. My checking account has a higher rate than any savings account and CD less than 2 years in length.

George Marian