explain bank accounts in exam
Dear student,
The following are the various types of bank accounts:
1. Saving Deposit Account: These accounts are for saving purposes by individuals. The deposits in this account are repayable on demand and offer a nominal interest rate.
2. Current Deposit Account: These accounts are generally used by business persons as they require greater and frequent transactions. Deposits in such accounts do not provide any interest. Generally the banks charge a fees for maintaining these accounts.
3. Fixed Deposit Account: In such accounts the money is deposited for a fixed period of time and is repayable only after the completion of the maturity period. The deposits in these accounts carry a high rate of interest.
4. Recurring Deposit Account: In such accounts a fixed amount is deposited at certain regular intervals. The deposits in these accounts carry a higher rate of interest than that offered by savings account.
5. Multiple Options Deposit Account: This account is a combination of savings account, current deposit account and fixed deposit account. It offers a rate of interest similar to that of fixed deposit account and liquidity similar to that of current account and savings account.
The following are the various types of bank accounts:
1. Saving Deposit Account: These accounts are for saving purposes by individuals. The deposits in this account are repayable on demand and offer a nominal interest rate.
2. Current Deposit Account: These accounts are generally used by business persons as they require greater and frequent transactions. Deposits in such accounts do not provide any interest. Generally the banks charge a fees for maintaining these accounts.
3. Fixed Deposit Account: In such accounts the money is deposited for a fixed period of time and is repayable only after the completion of the maturity period. The deposits in these accounts carry a high rate of interest.
4. Recurring Deposit Account: In such accounts a fixed amount is deposited at certain regular intervals. The deposits in these accounts carry a higher rate of interest than that offered by savings account.
5. Multiple Options Deposit Account: This account is a combination of savings account, current deposit account and fixed deposit account. It offers a rate of interest similar to that of fixed deposit account and liquidity similar to that of current account and savings account.