Why Should There Be A Balance Deposit In The Account? Here's The Explanation

Illustration of banks (Doc. Antara)

YOGYAKARTA As the owner of a bank account, of course you have asked the function of balance deposits that cannot be taken. Usually the nominal amount of balance deposits in the account varies depending on the banking policy. Then, why should there be a balance deposited in the account?

In general, the definition of balance in an account is money in an account with a certain nominal value that has been determined by the bank and cannot be taken or withdrawn by the account owner. The nominal amount of the account balance is at least different, depending on bank policy. The nominal amount of the balance is varied from Rp. 10,000 to Rp. 50 thousand.

For example, you have an A account with the last balance of IDR 150 thousand. Customers can only withdraw a maximum of IDR 100,000, the remaining balance is deposit in an account. However, there are also banking products that do not impose balance deposits as a condition for opening an account. Usually, this kind of product is used in cooperative products between banks and the government. In addition, some banks do not impose deposit balances on student deposit products.

The balance deposit function in the account is to cover the cost of the bank's overhead cost to manage the deposit. It should be noted, overhead costs are operational costs imposed by banks to customers. These routine costs include administrative costs, labor costs, cost of shrinking assets and office equipment, and so on.

Each bank applies different balance deposits according to the strategy of each bank in its products. The amount of deposit balance is also one of the bargaining power for new customers so that banking products are able to compete in the market.

The balance is also used as a safety if one day the customer wants to close his account, the balance will be intended as an administrative cost for the process of closing the related bank account. Usually, the bank will notify this when the customer closes the account.

That's information related to why there should be someone deposited in the account. To get other interesting information, visit VOI.ID.