est private treasure box.
Receiving time deposits is the one essential function of savings
banks, but this function is increasingly performed by other banks[5].
Sometimes time deposits are cared for by a separate department and
kept separate from the general business of a commercial bank.

Sec. 5. #Demand deposits#. Demand deposits are those payable on demand,
the demand in practice being by means of personal checks requesting
the bank to pay to (or on the order of) a specified person, or to pay
to bearer. A customer's bank account consisting of demand deposits is
called a checking account. Since the turn of the century it has become
increasingly the practice to pay a low rate of interest (about 2 per
cent) on current balances, oftener to large depositors. Banks attract
demand deposits mainly by the convenience and economy which they offer
to their customers in the guarding of funds from theft and fire and
in saving the time, trouble, and expense of carrying money for making
payments. A deposit in a bank is to the depositor for most purposes
"just as good" as money in the pocket and for many purposes is
even better. Thus the banks have become the custodians of a large
proportion of the money (or funds) needed for current use by
individuals and business corporations.

Sec. 6. #Discount and deposit#. The process of discount and deposit is
the purchase of the promissory note of a customer,[6] the price being
a credit in the form of a demand deposit on the books of the bank.
This--the central and most characteristic banking operation--has
something of mystery in it at first view. The simplest idea of making
a deposit is that of bringing to a bank window bags and rolls of money
or other funds (credit papers such as checks and drafts, calling for
the payment of money). The bank in that case becomes the debtor and
the depositor becomes the creditor of the bank. But in discount and
deposit the depositor brings no money, and the credit paper that he
gives is his own promise to pay whereby he becomes the bank's debtor.
For example, when a bank discounts a thousand dollar note for three
months and credits its customer with the proceeds, its deposits are at
that moment increased (let us say) $985. Notice that hereby the bank
does not add a cent to the cash in its vaults while it has added to
its liabilities payable on demand. As an off-setting asset it holds
the note of its customer receivable at some future time.

Sec.7. #Natur