Deposits with banks are beneficial to the depositors as well as to the nation because :
Benefit to the depositor
(i) Bank accepts the deposits and pays interest to the depositor.
(ii) People's money is safe with the bank.
(iii) People can withdraw the money as and when they require.
Benefits to the nation
(i) Banks use the major proportion of the deposit to extend loans.
(ii) There is a huge demand for loans for various economic activities.
(iii) Banks mediate between those who have surplus funds and those are in need of these funds, thus it helps in the economic development of the nation.