THE manner in which Miss Smith had left her money on what is termed a current account at the Bank is convenient to herself and profitable to the Blankshire Bank, for they have the use of it free, paying nothing for that use in the way of interest.

She will have other money coming to her in the shape of rents, and the interest on money invested, as represented in those documents in the tin box - all which money can be handed over to the Bank in the same way that the 500 was. There is, however, no reason why she should leave so much lying idle without obtaining any interest upon it. She will reckon up how much she will require for, say, the next six months, for house expenses and personal use, and also how much, on the other hand, she will be paid in rents or interest, and will then find that there will be a sum of; at least, say, 300 over and above all she desires to spend.

If she is wise, she will draw out this sum by cheque from her current account and have it placed on a deposit account. In this case the bank will give her a deposit receipt or interest note, somewhat in this form:

---------------------------------------------------------
|  No. 23975                          26th June, 1897.  |
|                                                       |
|              Blankshire Bank, Blanktown.              |
|                                                       |
|     RECEIVED from Miss Jane Smith the sum of Three    |
| Hundred Pounds, to be accounted for with interest at  |
| 2.5 per cent per annum, on 14 days' notice of         |
| withdrawl.                                            |
|                                                       |
|    Entered - J. Hill               T. Dale, Manager.  |
|                                                       |
---------------------------------------------------------
(and, written across the receipt "Not transferable")

If the money is at any time wanted in a hurry, banks do not insist upon notice being given to withdraw, but deduct the days of notice from the time the interest note has run. For instance, if the money has been deposited for 184 days, the 14 days of notice will be deducted and interest allowed on 170 days only. These receipts or notes are not transferable, and the repayment of the principal or the interest must be applied for by the owner either personally or by letter.

Money may be deposited in a bank in two names and be repayable to both conjointly, by either separately, or to the survivor of the two. The bank will require a form to be signed by both parties, specifying the manner in which it is desired that the money may be deposited. By giving directions, too, the principal may be retained in the name of one person and the interest paid to another. Some banks adopt the plan of book deposits, that is, the amount paid in is entered in a pass-book, and the interest credited half yearly. This may go on accumulating, or it can be drawn out in one sum only, not as in the case of a current account by cheques of various amounts.

Having thus established relations between Miss Smith and her bankers, let us see at the end, say, of a month, the state of her pass-book, premising that in the meantime she has received and paid into the bank some moneys, and also signed and sent cheques to some of her tradesmen:

--------------------------------------------------------------------------------
|                                      ||                                      |
|         THE BLANKSHIRE BANK.         ||              BLANKTOWN,              |
|                                      ||                                      |
|       Dr. to Miss Jane Smith.        ||                  of Blanktown.  Cr.  |
|                                      ||                                      |
|--------------------------------------||--------------------------------------|
|1897|  |                    |  |s.|d.||1897|  |                    |  |s.|d.|
|June|24| To Cash    .   .   |500| 0| 0||June|24| By Self    .   .   | 10| 0| 0|
|    |  |                    |   |  |  ||    |  |                    |   |  |  |
|July| 8|  " Dividend Consols| 11| 4| 6||  " | "|  " Tucker  .   .   | 23|10| 0|
|    |  |                    |   |  |  ||    |  |                    |   |  |  |
|  " |23|  " Rent from Cook  | 24|10| 0||  " |26|  " Deposit receipt |300| 0| 0|
|    |  |                    |   |  |  ||    |  |                    |   |  |  |
|  " |25|  " G.W.R. dividend | 30| 0| 0||July| 1|  " Figges  .   .   |  8| 3| 4|
|    |  |                    |   |  |  ||    |  |                    |   |  |  |
|    |  |                    |   |  |  ||  " | 3|  " Jones   .   .   |  5|10| 0|
|    |  |                    |   |  |  ||    |  |                    |   |  |  |
|    |  |                    |   |  |  ||  " |24|  " Self    .   .   | 10| 0| 0|
|    |  |                    |   |  |  ||    |  |                    |   |  |  |
|    |  | Total 565 14s. 6d.|   |  |  ||    |  | Total 357 3s. 4d. |   |  |  |
|    |  |                    |   |  |  ||    |  |                    |   |  |  |
--------------------------------------------------------------------------------

By the entries in the pass-book it will be perceived that 565 14s. 6d. has been paid into the bank, as appears on the left-hand page, and that 357 3s. 4d. has been drawn out, as appears on the right-hand page. The balance or difference between the two, amounting to 208 11s. 2d., remains to the credit of Miss Smith.

In this comfortable state of things we will leave Miss Smith, who can now claim to consult her banker in matters of business.

He will be able to offer her facilities in various ways. He will hold for her, in safe custody, any deeds or securities; and whilst she is absent from home will take charge of her plate or valuables, free of all expense. If she is travelling about the country he will arrange so that her cheques on the Blankshire Bank may be cashed at any other bank in the kingdom. If she has occasion for it he will send money on her account to some other person's credit at any bank in the kingdom or the civilised world. If she desires to travel abroad, he will obtain a passport for her and provide her with "circular notes," which may be turned into money at any place she is likely to visit.

He will buy and sell stocks, shares, annuities, &c., for her, and collect dividends, interest, coupons, &c., payable anywhere at home or abroad. He will cheerfully advise her on all matters connected with money, and it will be quite the exception if she does not, in all things, find him a safe and prudent counsellor.

As a rule, no charge is made by a bank for keeping an account, provided the balance, that is, the amount of money they hold for the customer - technically the credit balance - is not persistently small. If it were always under 50 that would be considered small, but if only occasionally below that figure, and sometimes above 200 for any time, it would generally be exempt from charge. When a charge is made for keeping an account which is not remunerative or free from trouble, it does not amount to much, and is fairly earned.

If an advance of money is required for a temporary purpose, the bank will often lend the money by allowing the account to be overdrawn, that is, the balance in the pass-book will appear as due "to" the bank instead of "from" the bank for the sum required from time to time. This is sometimes convenient when the advance is only required for a short time as avoiding the necessity for disturbing any investment which otherwise would have to be sold. As a rule, however (though exceptions are made where the customer is absolutely to be depended upon), the bank would desire some security to be deposited. This may take the form of a sufficient portion in value of stocks or shares in which the customer has invested, or sometimes the personal guarantee of one or two responsible persons is accepted. This is quite regular business, and the interest usually charged is fair and reasonable.