Short answers, pulled from the story.
Legal title transfers from the person to the financial institution immediately upon deposit. The bank owns that physical currency as an asset on its books while recording a liability of equal value owed back to the depositor.
Transactional accounts provide frequent access to funds on demand through channels like cheques or internet banking and allow direct payments via debit cards. Savings accounts cannot be used directly as money for point-of-sale transactions and restrict withdrawals to automated teller machines linked to the balance.
A time deposit structure called a certificate of deposit in the United States locks funds for a specific period without penalty-free withdrawal options. Longer terms generally yield higher interest rates offered by the bank, but early access triggers penalties defined by the contract.
Banks lend most deposited money to other clients rather than holding the entire sum in reserve to generate economic money through fractional-reserve processes. This mechanism allows providers to earn interest on assets and pay interest on deposits simultaneously while increasing the money supply without printing actual currency notes.
Government guarantee schemes secure certain bank deposits to reduce the extent of depositor losses during potential bank failures. Reserve requirements exist alongside these rules to minimize risk of failure for individual banks within the financial system.