Common use of Demand Deposits Clause in Contracts

Demand Deposits. Demand Deposit is a type of account where a maturity is not designated beforehand and where the balance of account can be paid by the Bank to the Customer upon his demand. The Bank is free to or not to accrue and pay interests on these accounts. If interest is accrued over Demand Deposits, such interests will be compounded to the principal sum as of the year-ends. If and when rates of interest applied on these accounts are changed by the Bank or as per the applicable laws and regulations, the interest amount will be calculated over the new rate of interest with effect from the date of change, without any further notice in relation therewith. The Customer will have the right to claim back the balance of his Demand Deposit Accounts without prejudice to the provisions of the applicable laws and regulations pertaining to pledge, lien, exchange and transfer and to his powers and obligations set forth in the other laws.