General deposits are recorded by entries in a pass book, or evidenced by certificates of deposit. These are instruments in which a bank acknowledges that it has received a sum of money from an individual and promises that the amount will be repaid. The certificate of deposit thus is both a receipt and a promissory note. It may be either negotiable or nonnegoti-able in form. If negotiable, it is payable to the bearer or to the order of a designated party, who may transfer it by indorsement, as in the case of any other negotiable instrument. A certificate of deposit payable directly to a specified party is nonnegotiable, and may be assigned to another person only by changing the entries on the books of the bank. The certificate of deposit is payable either on demand or on time. The demand certificate is used as an instrument for guaranteeing the cash payment of obligations or for the transferring of funds from one place to another, and therefore serves the same purpose either as a certified check or a bank draft. Consequently the demand certificate must be negotiable, so that it can readily be transferred by the depositor to his creditor. This party to the transaction is usually prompt in cashing the instrument, as it is generally noninterest bearing. As time certifi cates of deposit, on the other hand, are nonnegotiable, they yield a reasonable rate of interest and thus offer profitable means of investing funds which would otherwise remain idle. Time certificates are payable at either a definite or an indefinite date of maturity. One class matures on a set date, while the other is payable thirty days after any date on which the holder has filed notice of his intention to withdraw his deposit. In general, certificates of deposit differ from ordinary deposits in that the amount of the former remains unchanged, for it can neither be increased by deposits of additional sums, nor decreased by withdrawals through checks.

The various forms of deposits may be summarized as follows: special general passbook certificate of deposit demand time demand time.